ITAT Rejects Bogus Purchase Allegation as AO Failed to Prove Discrepancies in Books

ITO Vs INVT Electric India Private Limited (ITAT Mumbai) The Mumbai ITAT dismissed the Revenue’s appeal and upheld the order of the CIT(A) deleting an addition of Rs.9.90 crore made under section 69C on account of alleged unexplained expenditure. The assessee, engaged in industrial automation and energy power solutions, had substantial imports from its group entity in China, which constituted nearly 95% of its purchases. During assessment proceedings, the Assessing Officer relied on information from the Insight Portal and alleged discrepancies relating to purchases from certain third parties...