Purchase Addition Reduced as Manufacturing Reality Considered

Bhansali Udyog Pvt. Ltd Vs ITO (ITAT Delhi) Bogus Purchase Disallowance Moderated: Delhi ITAT Caps Addition at 10% Where Sales Are Undisputed The Delhi Bench of the ITAT partly allowed the appeal of Bhansali Udyog Pvt. Ltd. (AY 2018-19) by moderating the addition made on account of alleged bogus purchases of ₹53.48 lakh. While the Assessing Officer had treated the entire purchases as unexplained under section 69C, the CIT(A)/NFAC restricted the disallowance to 12.5%. The Tribunal observed that the assessee was engaged in the manufacture of electrical wires and cables, and that corresponding ...