Only profit element embedded to unaccounted purchases can be taxed: ITAT Chennai

DCIT Vs Sitaram Jewellers (ITAT Chennai) ITAT Chennai held that where unaccounted purchases are found and the corresponding sales are not doubted, only the profit element embedded in such purchases can be brought to tax, and not the entire purchase value. Accordingly, addition towards unaccounted purchases duly restricted. Facts-The assessee is a firm engaged in the business of purchase and selling of gold ornaments. The case of the assessee emanates from the findings of the search u/s.132 of the Act conducted in the group case of M/s. Mohanlal Jewellers Pvt. Ltd., Shri Suresh Kumar Khatri &a...