Only Profit Element in Bogus Purchases to Be Treated as Income: Bombay HC

PCIT Vs S V Jiwani (Bombay High Court) Bombay High Court recently dismissed an appeal filed by the Principal Commissioner of Income Tax (PCIT) against an order by the Income Tax Appellate Tribunal (ITAT), Mumbai. The appeal challenged the ITAT’s decision regarding the assessment year 2009-10, which had partly allowed relief to the assessee, S V Jiwani, concerning alleged bogus purchases. The Revenue had raised several questions of law, primarily contending that the ITAT erred in not considering the Supreme Court’s ruling in the case of N K Protein Ltd., which dealt with a similar i...