Only profit element embedded in bogus purchases should be added to income

Sangam Wires Vs ITO (ITAT Hyderabad) The case of Sangam Wires vs. ITO (Income Tax Officer), adjudicated by the Income Tax Appellate Tribunal (ITAT) Hyderabad, revolves around disputed purchases made by the assessee firm during the assessment year 2021-22. The dispute arises from the Assessing Officer’s contention that certain purchases made by the assessee from four specific parties were bogus, leading to an addition of Rs. 16,86,10,466 to the assessee’s total income. The assessee, a firm engaged in trading high tensile steel wires and other steel products, filed its return of inco...