Gujarat High Court Upholds 6% Addition on Bogus Purchases as Only Profit Element Taxable

PCIT-1 Vs Keshri Exports (Gujarat High Court) The Gujarat High Court dismissed the Revenue’s tax appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal (ITAT), Surat, relating to Assessment Year 2013-14. The case concerned additions made on account of alleged bogus purchases obtained from entities linked to the Bhanwarlal Jain Group, which was stated to be engaged in providing accommodation entries and non-genuine purchase bills. The assessee, engaged in the business of import, processing, export, and trading of diamonds, had filed ...