Only Profit Element Taxable Where Purchases Are From Suspected Hawala Parties

Prankit Exports Vs ITO (ITAT Mumbai) The Income Tax Appellate Tribunal Mumbai decided cross-appeals filed by the assessee and the Revenue for Assessment Year 2007–08, arising from reassessment proceedings under Sections 147/143(3) of the Income Tax Act, 1961. The dispute related to additions made under Section 69C on account of alleged bogus purchases from two parties, amounting to ₹77,70,765 and ₹29,09,702. The assessee initially challenged the validity of reassessment. However, at the hearing, the assessee did not press the grounds relating to reopening under Section 147, and these gro...