ITAT follows principle of consistency; Restricts addition for Bogus Purchase to 3% 

Trustar Diamond Vs ACIT (ITAT Mumbai)

The case of Trustar Diamond involves cross-appeals between the Assessee and the Revenue concerning alleged bogus purchases during Assessment Year 2012-13.

The dispute revolves around the addition of 12.5% of alleged bogus purchases totaling Rs. 6,62,48,443/- made by the Assessee from several entities, including Navkar Diamonds, Milan Co., Mukti Exports, and others. The Assessing Officer (AO) initially added the entire amount as income, which was contested by the Assessee before the Commissioner of Income Tax (Appeals) [CIT(A)].

Th

Please become a Premium member. If you are already a Premium member, login here to access the full content.