https://www.taxtmi.com/caselaws?id=289512 The appeal was filed against the order of CIT(A)-37, Mumbai concerning the order passed u/s.143(3) r.w.s. 147 of the IT Act. The AO disallowed 12.5% of alleged purchase amounting to Rs. 5,62,78,018/- and added it to the total income of the assessee. The assessee contended that all purchases were supported by corresponding sales or were in the closing stock, and without purchases, sales were not possible. The tax auditor did not find any issues with the quantitative details of purchases, sales, or closing stock. The assessee maintained a stock register and provided documents supporting the alleged purchases to the Assessing Officer and CIT(A). The Assessing Officer did not reject the books of account, and the addition on account of gross profit was challenged based on a decision of a co-ordinate Bench of Mumbai Tribunal regarding bogus purchases. The Tribunal directed the AO to restrict the addition to 2% of the purchases, allowing the appeal in part. en-us Wed, 15 Nov 2017 00:00:00 +0530 Tue, 04 Aug 2020 20:13:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=289512 The appeal was filed against the order of CIT(A)-37, Mumbai concerning the order passed u/s.143(3) r.w.s. 147 of the IT Act. The AO disallowed 12.5% of alleged purchase amounting to Rs. 5,62,78,018/- and added it to the total income of the assessee. The assessee contended that all purchases were supported by corresponding sales or were in the closing stock, and without purchases, sales were not possible. The tax auditor did not find any issues with the quantitative details of purchases, sales, or closing stock. The assessee maintained a stock register and provided documents supporting the alleged purchases to the Assessing Officer and CIT(A). The Assessing Officer did not reject the books of account, and the addition on account of gross profit was challenged based on a decision of a co-ordinate Bench of Mumbai Tribunal regarding bogus purchases. The Tribunal directed the AO to restrict the addition to 2% of the purchases, allowing the appeal in part. Case-Laws Income Tax Wed, 15 Nov 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=289512