Entire Purchase Disallowance Rejected; 6% GP Estimation Upheld

ITO Vs Rajat Diamond Exim Private Limited (ITAT Mumbai) Bogus Purchases Can’t Mean Bogus Sales Too: ITAT Mumbai Upholds 6% GP Estimation, Rejects s.68 Double Taxation in Diamond Trade ITAT Mumbai (D Bench) in ITO vs Rajat Diamond Exim Pvt. Ltd. & cross-appeals (ITA Nos. 1458 to 1460/Mum/2025, 1478/Mum/2025 & 1527 to 1529/Mum/2025; AYs 2013-14 to 2016-17; order dated 23.12.2025) has dismissed both Revenue & Assessee appeals, affirming CIT(A)’s balanced approach of taxing only the profit element at 6% on alleged bogus purchases/sales. The case arose from reassessments u/s 147 r.w...