Entire Bogus Purchase Amount Cannot Be Taxed Without Considering Profit Element: Gujarat HC

PCIT-1 Vs Pankaj K Choudhary (Gujarat High Court) The Gujarat High Court dismissed a tax appeal filed by the Revenue under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal (ITAT), Surat, for Assessment Year 2007-08. The dispute related to additions made on account of alleged bogus purchases linked to accommodation entries provided by entities associated with the Bhanwarlal Jain Group. The assessee was engaged in the business of import, export, and trading of cut, polished, and rough diamonds. An assessment under Section 143(3) was originally compl...