https://www.taxtmi.com/caselaws?id=456027 ITAT Raipur held that the AO correctly rejected the assessee's books under Section 145(3) due to bogus purchases from unverified parties. The assessee's disclosure under Income Disclosure Scheme 2016 substantiated the genuineness concerns regarding purchases from one party. However, the Tribunal found the AO's ad-hoc 25% disallowance rate unjustified without proper reasoning. The addition should be restricted to profit differential between genuine and bogus purchases, calculated pro-rata based on the gross profit already declared under IDS 2016. The matter was remanded to AO for proper quantification considering the IDS declaration and applying the gross profit rate differential methodology. en-us Thu, 25 May 2023 00:00:00 +0530 Sat, 22 Jun 2024 07:16:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456027 ITAT Raipur held that the AO correctly rejected the assessee's books under Section 145(3) due to bogus purchases from unverified parties. The assessee's disclosure under Income Disclosure Scheme 2016 substantiated the genuineness concerns regarding purchases from one party. However, the Tribunal found the AO's ad-hoc 25% disallowance rate unjustified without proper reasoning. The addition should be restricted to profit differential between genuine and bogus purchases, calculated pro-rata based on the gross profit already declared under IDS 2016. The matter was remanded to AO for proper quantification considering the IDS declaration and applying the gross profit rate differential methodology. Case-Laws Income Tax Thu, 25 May 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456027