ITAT Restricts Bogus Purchase Addition to 5% Profit Element: ITAT Delhi

ITO Vs Shankar Metal & Alloys (ITAT Delhi) ITAT Restricts Bogus Purchase Addition to 5% Profit Element; Revenue’s Plea for Entire Addition Rejected The Delhi ITAT dismissed the Revenue’s appeal seeking addition of the entire bogus purchases as unexplained expenditure under section 69C. The assessee, engaged in trading of non-ferrous metal scrap and manufacturing of aluminium ingots, was alleged to have made purchases from a paper concern controlled by an accommodation entry provider. Based on this information, the Assessing Officer reopened the assessment and added ₹1.64 cror...