ITAT Rightly Restricted Bogus Purchase Addition to 10% as Sales Accepted: Bombay HC

PCIT Vs Amcon Construction (Bombay High Court) The appeal was filed by the Revenue under Section 260A of the Income Tax Act, 1961, challenging the order of the Income Tax Appellate Tribunal (ITAT) for Assessment Year 2011–12. The ITAT had partly allowed the assessee’s appeal and restricted the disallowance on alleged bogus purchases to 10%, as against the 25% sustained by the Commissioner of Income Tax (Appeals) [CIT(A)]. The Revenue raised questions regarding the correctness of the ITAT’s decision, particularly arguing that the assessee had failed to produce primary evidence such as del...