ITAT Mumbai upholds addition of 12.5% of profit element confirmed by NFAC

ITO Vs Rajesh Amulakhrai Sanghvi (ITAT Mumbai) In a recent decision, the Income Tax Appellate Tribunal (ITAT) Mumbai addressed an appeal filed by the Revenue against an order passed by NFAC, Delhi. The case, ITO Vs Rajesh Amulakhrai Sanghvi, involved the assessment for the Assessment Year 2009-10. The dispute arose from the Revenue’s challenge against the decision of the ld. CIT(A) to restrict the disallowance to 12.5% of the purchases instead of the entire amount. The assessee had declared a total income of Rs.4,72,510/- and shown purchases amounting to Rs.15,77,629/- from two parties. ...