Tribunal Applies Real Income Theory, Restricts Additions to 10% of Bogus Purchases

Saket Agrawal Vs ITO (ITAT Delhi) Tribunal Applies Real Income Theory, Restricts Additions to 10% of Purchases & 115BBE Not Applicable to AY 2017-18 Assessee, engaged in trading of optical frames through proprietorship concerns Prerna Impex & Kailadevi Overseas, appealed against the order of NFAC which upheld multiple additions made in scrutiny assessment u/s 143(3). AO noted large cash deposits in SBN during demonetization (Rs.2.20 crores in Prerna Impex), alleged bogus purchases from four local parties & discrepancies in sundry creditors. Based on survey findings & statements...