ITAT Mumbai Restricts Bogus Purchase Addition to 7.87% of profit element

Marvell Nutex Pvt. Ltd. Vs ITO (ITAT Mumbai) The assessee, engaged in the business of manufacturing and trading in yarn and grey fabric, filed its return of income for Assessment Year 2011-12. Subsequently, reassessment proceedings were initiated based on information received from the Directorate General of Income Tax (Investigation), Mumbai, which relied upon findings of the Maharashtra Sales Tax Department. According to the information, the assessee had allegedly obtained accommodation purchase bills from three entities identified as hawala dealers, involving purchases aggregating to ₹44.4...