ITAT Deletes Bogus Purchase Addition as assessee submitted adequate evidence

Rahul M Dalmia Vs ITO (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT) in Mumbai ruled in favor of the appellant, Rahul M. Dalmia, by deleting a disputed addition to his income. The case stemmed from an assessment year 2008-09 order, where the Income Tax Officer (ITO) added Rs. 10,93,845 to Dalmia’s taxable income, representing 25% of alleged “bogus purchases” from a single supplier, M/s Arun Paper & Iron Traders. The ITO’s action was based on the premise that these purchases were not genuine, and the assessee was taking accommodation entries to reduce his tax...