ITAT Upholds Deletion of Bogus Purchase Addition for Pharma Co.

ITO Vs Mangalam Drugs & Organics Ltd (ITAT Mumbai) ITAT Mumbai Upholds CIT(A)’s Deletion of ₹37.84 Cr Bogus Purchase Addition Against Mangalam Drugs, Citing Sufficient Evidence and Procedural Fairness Facts: Mangalam Drugs & Organics Ltd., engaged in manufacturing bulk drugs and trading, filed its income tax return for AY 2011–12 declaring an income of ₹56.14 lakh. The case was selected for scrutiny, during which the Assessing Officer (AO) added ₹37.84 crore for alleged bogus purchases, ₹51.80 lakh for excess depreciation, and ₹0.99 lakh under Section 14A. The AO issued n...