https://www.taxtmi.com/caselaws?id=448666 ITAT Mumbai-AT partially allowed assessee's appeal against addition u/s 69C for bogus diamond purchases from M/s. Mohit Enterprises. The tribunal found CIT(A) erred in sustaining 100% disallowance, noting sales and closing stock were undisturbed by tax authorities. Following Nitin Ramdeoji Lohia precedent, only profit element needs taxation when purchases are bogus but sales remain unaffected. Tribunal reduced addition to 2% gross profit on disputed purchases instead of full disallowance, considering assessee's declared profit margins of 3.95% current year and 17.59% previous assessment year. en-us Tue, 12 Dec 2023 00:00:00 +0530 Thu, 25 Jan 2024 13:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448666 ITAT Mumbai-AT partially allowed assessee's appeal against addition u/s 69C for bogus diamond purchases from M/s. Mohit Enterprises. The tribunal found CIT(A) erred in sustaining 100% disallowance, noting sales and closing stock were undisturbed by tax authorities. Following Nitin Ramdeoji Lohia precedent, only profit element needs taxation when purchases are bogus but sales remain unaffected. Tribunal reduced addition to 2% gross profit on disputed purchases instead of full disallowance, considering assessee's declared profit margins of 3.95% current year and 17.59% previous assessment year. Case-Laws Income Tax Tue, 12 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448666