https://www.taxtmi.com/caselaws?id=751701 ITAT Mumbai reduced the addition from 12.5% to 4% of bogus purchases in a case involving an assessee who purchased material from one party but obtained bogus bills from another. The tribunal held that only the profit element embedded in bogus purchases should be added to income, not the entire transaction value. Considering the assessee's steel and pipe business had a profit margin of 2-3%, plus additional expenses and tax credits, the tribunal deemed 4% addition appropriate. The CIT(A)'s 12.5% addition was excessive. The assessee's appeal was partly allowed. en-us Fri, 19 Apr 2024 00:00:00 +0530 Tue, 23 Apr 2024 09:13:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751701 ITAT Mumbai reduced the addition from 12.5% to 4% of bogus purchases in a case involving an assessee who purchased material from one party but obtained bogus bills from another. The tribunal held that only the profit element embedded in bogus purchases should be added to income, not the entire transaction value. Considering the assessee's steel and pipe business had a profit margin of 2-3%, plus additional expenses and tax credits, the tribunal deemed 4% addition appropriate. The CIT(A)'s 12.5% addition was excessive. The assessee's appeal was partly allowed. Case-Laws Income Tax Fri, 19 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751701