https://www.taxtmi.com/caselaws?id=403091 The ITAT Mumbai partially allowed the appeal by directing the AO to estimate a profit at 4% on disputed purchases, resulting in an addition of Rs. 60,400 only. The CIT(A)'s deletion of the addition of Rs. 1,88,768 made by the AO on account of bogus purchases was overturned, emphasizing the need for substantiating transactions and considering the nature of the assessee's business in profit estimations. The ITAT focused on the substantive issue of the addition made by the AO, disregarding the tax effect monetary limit prescribed by CBDT instruction in light of information from law enforcement agencies. en-us Mon, 18 Jan 2021 00:00:00 +0530 Tue, 19 Jan 2021 10:59:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=403091 The ITAT Mumbai partially allowed the appeal by directing the AO to estimate a profit at 4% on disputed purchases, resulting in an addition of Rs. 60,400 only. The CIT(A)'s deletion of the addition of Rs. 1,88,768 made by the AO on account of bogus purchases was overturned, emphasizing the need for substantiating transactions and considering the nature of the assessee's business in profit estimations. The ITAT focused on the substantive issue of the addition made by the AO, disregarding the tax effect monetary limit prescribed by CBDT instruction in light of information from law enforcement agencies. Case-Laws Income Tax Mon, 18 Jan 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=403091