Without purchases there cannot be sales – Mumbai ITAT rejects 100% bogus purchase addition

ACIT Vs R. N. Gems (ITAT Mumbai) “Without purchases there cannot be sales” – Mumbai ITAT rejects 100% bogus purchase addition in diamond trade case In a significant ruling, the Mumbai ITAT dismissed the Revenue’s appeal and upheld restriction of addition on alleged bogus purchases to only the profit element embedded therein, holding that once sales are accepted, the entire purchases cannot be disallowed. The reassessment was triggered based on information received from the Investigation Wing alleging that the assessee had obtained accommodation entries from concerns linked to the R...