ITAT Deletes Bogus Purchase Addition as Sole Reliance on Retracted Statement Unsustainable

Star Brillian Vs ITO (ITAT Mumbai) The assessee, a partnership firm engaged in the import, export, manufacture of diamonds, and dealing in diamond, precious stones, and jewellery, filed two appeals before the Income Tax Appellate Tribunal (ITAT), Mumbai, for Assessment Years (AYs) 2009-10 and 2013-14. Both appeals involved an identical issue and were disposed of through a common order. The assessee challenged the reopening of the assessment, the estimation of profit at 3% of purchases amounting to ₹9,74,86,964, and the alleged violation of the principles of natural justice. The reassessment ...