Only profit element to be taxed in case of unverifiable purchases: ITAT Delhi

DCIT Vs Tirupati Matsup Private Limited (ITAT Delhi) ITAT Delhi held that in case of bogus purchases only profit element embedded should be taxed and entire amount of purchases cannot be taxed. Accordingly, AO directed to apply profit rate of 5% on unverifiable purchases. Facts- The assessee is a company, engaged in the business of wholesale trade of building materials like Cement/TMT/Cables etc. and also was a civil contractor for various Government Departments and also with private companies. During the course of assessment proceedings, AO concluded that purchases from three parties were bog...