https://www.taxtmi.com/caselaws?id=753066 ITAT Mumbai held that disallowances for bogus purchases, which enhanced business income, were eligible for deduction under section 80IA. The AO rejected the assessee's explanation regarding purchases from parties and made additions by applying gross profit rates and treating transactions as bogus. CIT(A) allowed section 80IA deduction on these additions following CBDT Circular No.37 of 2016, reasoning that disallowances related to business activity qualify for the deduction. ITAT confirmed CIT(A)'s order, deciding against revenue. en-us Tue, 21 May 2024 00:00:00 +0530 Fri, 24 May 2024 08:07:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753066 ITAT Mumbai held that disallowances for bogus purchases, which enhanced business income, were eligible for deduction under section 80IA. The AO rejected the assessee's explanation regarding purchases from parties and made additions by applying gross profit rates and treating transactions as bogus. CIT(A) allowed section 80IA deduction on these additions following CBDT Circular No.37 of 2016, reasoning that disallowances related to business activity qualify for the deduction. ITAT confirmed CIT(A)'s order, deciding against revenue. Case-Laws Income Tax Tue, 21 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753066