ITAT Mumbai Deletes 12.5% Bogus Purchase Addition Where Goods Were Returned

Milan Electric Corporation Vs ITO (ITAT Mumbai) No Profit Element on Bogus Purchases Where Goods Are Returned – Once Purchases Are Returned, No Scope for 12.5% Bogus Addition In the case of assessee, engaged in trading of electronic items, faced reassessment on the basis of information from the Sales Tax Department that it had made purchases from alleged hawala/bogus suppliers. AO alleged purchases worth ₹32.45 lakh from three parties to be non-genuine & added 12.5% (₹4.05 lakh) to Assessee’s income as profit element of bogus purchases. CIT(A) sustained the addition. Before the...