ITAT Mumbai Upholds 12.5% Addition on Bogus Purchases, Rejects Assessee & Revenue Appeals

Palmon Impex Pvt. Ltd. Vs ITO (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT), Mumbai bench, delivered a common order on the appeals filed by both the assessee, Palmon Impex Pvt. Ltd., and the Revenue against the order of the National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] for the Assessment Year (AY) 2011-12. The core dispute centered on the validity of reassessment proceedings and, more significantly, the quantum of addition made on account of alleged bogus purchases of approximately Rs.2.19 crores. Background and Assessment Proceedings Palmon Impex Pvt. Ltd., engaged in the bu...