https://www.taxtmi.com/caselaws?id=456019 The ITAT Raipur held that where an assessee engaged in bogus billing activities through dealers who issued bills without actual transfer of goods, the entire purchase amount cannot be added to income. Following the Bombay HC decision in Mohammad Haji Adam Co., the addition should be limited to the gross profit rate applicable to genuine purchases. Since the assessee failed to provide detailed computation of separate GP rates for bogus versus genuine transactions to lower authorities, the matter was restored to the assessing officer to determine the appropriate GP rate. The revenue's appeal was allowed for statistical purposes with directions for proper verification. en-us Tue, 31 May 2022 00:00:00 +0530 Sat, 22 Jun 2024 07:16:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456019 The ITAT Raipur held that where an assessee engaged in bogus billing activities through dealers who issued bills without actual transfer of goods, the entire purchase amount cannot be added to income. Following the Bombay HC decision in Mohammad Haji Adam Co., the addition should be limited to the gross profit rate applicable to genuine purchases. Since the assessee failed to provide detailed computation of separate GP rates for bogus versus genuine transactions to lower authorities, the matter was restored to the assessing officer to determine the appropriate GP rate. The revenue's appeal was allowed for statistical purposes with directions for proper verification. Case-Laws Income Tax Tue, 31 May 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456019