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, well-known accommodation entry providers u...