Entire Bogus Purchase Addition Set Aside, 10% Estimated

Pushpa Saluja Vs ITO (ITAT Delhi) Bogus Purchases Not Taxable u/s 68 – Only 10% Profit Element Sustained on Estimation Basis The Delhi ITAT partly allowed the assessee’s appeal and substantially reduced the addition of ₹55.54 lakh made on account of alleged bogus purchases/sundry creditors for AY 2014-15. The Tribunal held that the additions could not be made under Section 68, as the disputed amounts represented purchases recorded in the trading account and not unexplained cash credits. Following the directions of the Delhi High Court in the assessee’s own case, the Tribunal ruled that...