ITAT Upholds 5% Addition Where Purchases Linked to Sales

ITO Vs Silk Factory (ITAT Delhi) Bogus Purchase Allegations Fail Where Sales and Stock Are Accepted – ITAT Delhi Upholds 5% Estimation The Delhi Bench of the ITAT dismissed the Revenue’s appeal and upheld the order of the CIT(A) restricting disallowance of alleged bogus purchases to 5% for AY 2022-23. The AO had treated purchases of ₹21.83 crore from certain suppliers as entirely fictitious based on GST irregularities, non-filing of returns by suppliers, and non-response to notices under section 133(6), and consequently made 100% disallowance under section 69C. The Tribunal noted that th...