ITAT Allows Full Addition After Purchases Held Bogus: 8% Estimation Rejected

ACIT Vs Romil Diam (ITAT Mumbai) The Revenue filed appeals for Assessment Years 2010–11 and 2011–12 challenging the orders of the CIT(A) restricting additions on alleged bogus purchases to 8% of the total purchases, as against the Assessing Officer’s (AO) addition of 100%. The AO had treated purchases of ₹2,14,04,724 from entities such as Aadi Kalash Enterprises, Rare Demands, and Millenium Stars as entirely bogus. These entities were identified by the Investigation Wing as part of a network of accommodation entry providers associated with the Rajendra Jain Group. Investigations reveal...