ITAT Mumbai Restricts Bogus Purchase Addition to 12.5% Profit instead of 100%

Quality Heightcon Private Limited Vs DCIT (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT) in Mumbai partially allowed an appeal from Quality Heightcon Private Limited, directing the Assessing Officer (AO) to restrict a disallowance for “bogus purchases” to a 12.5% profit element instead of the full 100% disallowance. The appeal challenged two primary issues: the validity of the assessment reopening and the complete disallowance of alleged bogus purchases worth Rs. 42,82,977. While the assessee did not press the challenge to the reopening, the Tribunal found merit in the clai...