Bogus Purchases – Only 0.2% Profit Addition Sustainable, Consistency Prevails: ITAT Mumbai

ITO Vs Sundha Steels Pvt. Ltd. (ITAT Mumbai) ITAT Mumbai: Bogus Purchases – Only 0.2% Profit Addition Sustainable, Consistency Prevails In this case, the ITAT Mumbai upheld the CIT(A)’s action of restricting addition on alleged bogus purchases (₹27.5 crore) to only 0.2% of the purchase value, rejecting the Revenue’s attempt to apply a higher GP rate of 1.23%. The Tribunal noted that: In the assessee’s own earlier and subsequent years, identical issue had been decided by ITAT by restricting addition to 0.2% (profit element) Such decisions had attained finality, as Revenue’s appeals...