https://www.taxtmi.com/caselaws?id=446300 ITAT Mumbai reduced addition from 25% to 4% of bogus purchases. Assessee produced purchase registers, sale registers, ledger invoices, stock movement records, and bank statements to prove genuineness. Since AO did not doubt corresponding sales and assessee possessed goods, only profit margin embedded in grey market transactions was taxable. ITAT held that where purchases are from grey market with third-party bills obtained for cash after commission deduction, addition should be restricted to profit element rather than entire purchase amount. en-us Tue, 14 Nov 2023 00:00:00 +0530 Wed, 31 Jan 2024 13:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446300 ITAT Mumbai reduced addition from 25% to 4% of bogus purchases. Assessee produced purchase registers, sale registers, ledger invoices, stock movement records, and bank statements to prove genuineness. Since AO did not doubt corresponding sales and assessee possessed goods, only profit margin embedded in grey market transactions was taxable. ITAT held that where purchases are from grey market with third-party bills obtained for cash after commission deduction, addition should be restricted to profit element rather than entire purchase amount. Case-Laws Income Tax Tue, 14 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446300