Grey Market Sourcing? Entire Bogus Purchases Can’t Be Disallowed

ACIT Vs KDM Impex (ITAT Mumbai)

Grey Market Sourcing? Entire Bogus Purchases Can’t Be Disallowed – Only 3% Profit Element Taxable : ITAT Mumbai

Mumbai ITAT has once again upheld the principle that where sales are accepted as genuine, entire bogus purchases cannot be disallowed & only the profit element embedded in such purchases can be taxed.

In the case of a diamond trader AO made an addition of ₹2.73 crore treating entire purchases from Jewel Diam & Rose Impex as bogus. These concerns were found to be part of the Bhanwarlal Jain group,

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