ITAT Mumbai Restricts Bogus Purchase Disallowance to 5%

ITO Vs Khimchand Okchand Bhansali (ITAT Mumbai) Summary: The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has recently adjudicated on the extent of disallowance permissible in cases involving alleged bogus purchases, modifying an earlier order by the Commissioner of Income Tax (Appeals) [CIT(A)]. The case, involving the Income Tax Officer (ITO) and Khimchand Okchand Bhansali, centered on the disallowance of purchases deemed non-genuine by the Assessing Officer (AO) for the assessment years 2009-10, 2010-11, and 2011-12. Initially, the AO had disallowed 12.5% of the total purchases, citi...