https://www.taxtmi.com/caselaws?id=448893 ITAT Raipur held that where assessee failed to substantiate purchases from bogus parties but A.O. found goods were procured from grey market at discounted rates, addition should be limited to profit element rather than entire purchase value. Addition to be made by equalizing gross profit rate of bogus purchases with genuine purchases. Matter remanded to A.O. for restricted addition. Penalty u/s 271(1)(c) cancelled due to defective notice u/s 274 failing to specify clear charges, violating assessee's right to adequate opportunity of being heard. en-us Tue, 30 Jan 2024 00:00:00 +0530 Wed, 31 Jan 2024 16:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448893 ITAT Raipur held that where assessee failed to substantiate purchases from bogus parties but A.O. found goods were procured from grey market at discounted rates, addition should be limited to profit element rather than entire purchase value. Addition to be made by equalizing gross profit rate of bogus purchases with genuine purchases. Matter remanded to A.O. for restricted addition. Penalty u/s 271(1)(c) cancelled due to defective notice u/s 274 failing to specify clear charges, violating assessee's right to adequate opportunity of being heard. Case-Laws Income Tax Tue, 30 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448893