https://www.taxtmi.com/caselaws?id=397367 The ITAT Mumbai ruled in favor of the assessee, reducing the disallowed purchase amount related to alleged bogus purchases from 12.5% to 5%. The tribunal emphasized that only the profit element from such purchases should be taxed, not the total purchase amount. Despite the assessee's evidence supporting the genuineness of the purchases, the lack of conclusive proof led to the decision. The ITAT considered the 12.5% addition rate excessive given the business nature and ordered the AO to limit it to 5% on the alleged bogus purchases for Assessment Year 2009-10. en-us Tue, 16 Jun 2020 00:00:00 +0530 Mon, 17 Aug 2020 10:36:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=397367 The ITAT Mumbai ruled in favor of the assessee, reducing the disallowed purchase amount related to alleged bogus purchases from 12.5% to 5%. The tribunal emphasized that only the profit element from such purchases should be taxed, not the total purchase amount. Despite the assessee's evidence supporting the genuineness of the purchases, the lack of conclusive proof led to the decision. The ITAT considered the 12.5% addition rate excessive given the business nature and ordered the AO to limit it to 5% on the alleged bogus purchases for Assessment Year 2009-10. Case-Laws Income Tax Tue, 16 Jun 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=397367