https://www.taxtmi.com/caselaws?id=293674 The ITAT Mumbai partially allowed the appeal concerning the addition of Rs. 35.28 lakhs related to alleged bogus purchases. The tribunal found that disallowing the entire purchase amount was unjustified, noting that the purchased diamonds were used and sold legitimately. It suggested estimating the profit element embedded in the purchases and directed the AO to restrict the addition to 5% of the value of the alleged bogus purchases, ultimately ruling in favor of the assessee in part. en-us Mon, 21 May 2018 00:00:00 +0530 Wed, 24 Feb 2021 09:40:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=293674 The ITAT Mumbai partially allowed the appeal concerning the addition of Rs. 35.28 lakhs related to alleged bogus purchases. The tribunal found that disallowing the entire purchase amount was unjustified, noting that the purchased diamonds were used and sold legitimately. It suggested estimating the profit element embedded in the purchases and directed the AO to restrict the addition to 5% of the value of the alleged bogus purchases, ultimately ruling in favor of the assessee in part. Case-Laws Income Tax Mon, 21 May 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=293674