Gross Profit Cannot Be Disturbed Without Rejecting Books of Accounts: ITAT Mumbai

ACIT Vs Patodia Filaments Pvt Ltd. (ITAT Mumbai) In the case of ACIT vs. Patodia Filaments Pvt Ltd., the Income Tax Appellate Tribunal (ITAT) Mumbai ruled that trading results and gross profits cannot be interfered with if the assessee provides sufficient evidence of purchases, sales, delivery, and payments. The case involved additions made by the Assessing Officer (AO) for bogus purchases in Assessment Years (AY) 2016-17 and 2018-19. The additions were based on statements from an individual linked to the suppliers, who admitted to issuing accommodation bills. However, ITAT upheld the principl...