https://www.taxtmi.com/caselaws?id=446529 The ITAT Mumbai partially allowed the assessee's appeal regarding bogus purchases. The CIT(A) had sustained 100% disallowance of purchases from two concerns under section 69C. The ITAT held that since sales were not disturbed by tax authorities, only the profit element embedded in the transaction should be taxed. The assessee had offered 6% profit on disputed purchases. The ITAT directed the AO to restrict the addition to 6% of the disputed purchases instead of 100% disallowance, following established judicial precedent. en-us Wed, 29 Nov 2023 00:00:00 +0530 Wed, 06 Dec 2023 08:58:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446529 The ITAT Mumbai partially allowed the assessee's appeal regarding bogus purchases. The CIT(A) had sustained 100% disallowance of purchases from two concerns under section 69C. The ITAT held that since sales were not disturbed by tax authorities, only the profit element embedded in the transaction should be taxed. The assessee had offered 6% profit on disputed purchases. The ITAT directed the AO to restrict the addition to 6% of the disputed purchases instead of 100% disallowance, following established judicial precedent. Case-Laws Income Tax Wed, 29 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446529