https://www.taxtmi.com/caselaws?id=751893 ITAT Mumbai dismissed the assessing officer's appeal regarding bogus purchases in second reopening assessment proceedings. The assessee had already sustained an addition of Rs. 5,047,947 at 5.76% net profit rate on total turnover in first reopening assessment. For alleged bogus purchases of Rs. 11,58,195 identified from Sales Tax Department information, ITAT held that only profit embedded in bogus purchases should be taxed if they resulted in sales. Since the alleged bogus purchase amount was significantly lower than the already sustained addition, CIT(A) correctly made no further addition to total income. en-us Thu, 25 Apr 2024 00:00:00 +0530 Mon, 29 Apr 2024 07:30:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751893 ITAT Mumbai dismissed the assessing officer's appeal regarding bogus purchases in second reopening assessment proceedings. The assessee had already sustained an addition of Rs. 5,047,947 at 5.76% net profit rate on total turnover in first reopening assessment. For alleged bogus purchases of Rs. 11,58,195 identified from Sales Tax Department information, ITAT held that only profit embedded in bogus purchases should be taxed if they resulted in sales. Since the alleged bogus purchase amount was significantly lower than the already sustained addition, CIT(A) correctly made no further addition to total income. Case-Laws Income Tax Thu, 25 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751893