ITAT upheld addition of 12.5% of alleged bogus purchases

Vijay B Shah (HUF) Vs ITO (ITAT Mumbai) In the given case, the assessee is engaged in the trading of iron and steel. A.O. has reopened the assessment on getting information regarding assessee taking accommodation purchase bills. The A.O. made enquiry and found that the assessee has taken purchase bills without delivery of goods. Accordingly, he added 12.5% of such alleged purchases in assessee’s income. By the impugned order, the Id. CIT(A) after considering various judicial pronouncements on the issue and the facts and circumstances of the case upheld the order of the A.O. Hence now ass...