Estimation of Net Profit Mandatory Once Books Are Rejected

ITO Vs Kruti Sandeep Shah (ITAT Mumbai) After Rejecting Books, AO Can’t Tax Entire Purchases: ITAT Mumbai Sets Aside 100% Bogus Purchase Addition Mumbai  ITAT disposed of the Revenue’s appeal by reiterating the settled principle governing additions in bogus purchase cases. The AO had reopened the assessment on the basis of information from the Investigation Wing alleging bogus purchases of ₹34.20 lakh from hawala parties. In the absence of compliance, the AO rejected the books of account u/s 145(3) and proceeded to add the entire purchase amount as non-genuine, determining assessed inc...