ITAT Surat Restricts Bogus Purchase Addition as Only Profit Element Is Taxable

Virani Exports Vs ITO (ITAT Surat) The Income Tax Appellate Tribunal (ITAT), Surat, partly allowed the assessee’s appeal by restricting the addition on alleged bogus purchases to a profit estimation instead of sustaining the entire purchase amount as income. The assessee’s case was reopened under Sections 147 and 143(3) of the Income Tax Act to examine alleged accommodation entries obtained from the Bhanvarlal Jain Group. During assessment, the Assessing Officer (AO) treated purchases of ₹5,95,728 from M/s Ankita Exports, an entity of the Bhanvarlal Jain Group, as bogus and added the ent...