https://www.taxtmi.com/caselaws?id=750701 ITAT Mumbai held that in cases of alleged bogus purchases where accommodation bills are obtained, only the profit element can be assessed, not the entire purchase value. The tribunal determined that for diamond trading transactions, the gross profit rate should be 3%. Since the assessee had already declared 1.42% gross profit, the addition was restricted to 1.58% (3% minus 1.42%) of the alleged bogus purchase value. The appeal was partly allowed, modifying the CIT(A)'s order to limit the assessment to this profit differential. en-us Mon, 26 Feb 2024 00:00:00 +0530 Thu, 28 Mar 2024 08:53:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=750701 ITAT Mumbai held that in cases of alleged bogus purchases where accommodation bills are obtained, only the profit element can be assessed, not the entire purchase value. The tribunal determined that for diamond trading transactions, the gross profit rate should be 3%. Since the assessee had already declared 1.42% gross profit, the addition was restricted to 1.58% (3% minus 1.42%) of the alleged bogus purchase value. The appeal was partly allowed, modifying the CIT(A)'s order to limit the assessment to this profit differential. Case-Laws Income Tax Mon, 26 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=750701