ITAT Mumbai Restricts Bogus Purchase Addition to Profit element 

Chinar Gems Vs ITO (ITAT Mumbai) Bogus Purchase addition restricted to profit element -Kanak Impex Ruling distinguished : ITAT Mumbai In a consolidated ruling for AYs 2010-11 & 2011-12, Mumbai ITAT dismissed cross-appeals by Chinar Gems & the Revenue over additions on alleged bogus diamond purchases from Daksh Diamonds, part of the Bhanwarlal Jain accommodation entry network. AO, relying on Investigation Wing findings & statements from the Jain group, treated the entire purchases of ₹84.23 lakh (AY 2010-11) as bogus u/s 69C. Assessee had furnished bills, bank payments, confirma...