ITAT Restricts Bogus Purchase Addition as Only Profit Element Can Be Taxed

Pruthvi Singh Solanki Vs ITO (ITAT Ahmedabad) The Income Tax Appellate Tribunal (ITAT), Ahmedabad, partly allowed the assessee’s appeal against the order of the Commissioner of Income Tax (Appeals), NFAC, for Assessment Year 2018-19. The dispute related to the addition of Rs. 50,33,695 made by the Assessing Officer (AO) on the ground that the assessee had made bogus purchases from five entities allegedly engaged in providing accommodation entries. The assessee, an individual engaged in the business of trading in ferrous and non-ferrous metals under the name “Vinay Enterprises,̶...