https://www.taxtmi.com/caselaws?id=755431 ITAT Raipur held that additions made by AO at 25% of bogus purchases value, later reduced to 5% by CIT(Appeals), lacked proper basis for profit quantification. Following precedent in Balaji Rice Industries, the Tribunal directed AO to restrict additions to the difference between gross profit rates of genuine versus bogus purchases, equalizing GP rates. Additionally, the Tribunal deleted the commission addition of 1% (scaled down from 5%) made on presumptive basis without supporting evidence. Matter remanded to AO for recalculation per directions. en-us Tue, 09 Jul 2024 00:00:00 +0530 Fri, 12 Jul 2024 08:37:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=755431 ITAT Raipur held that additions made by AO at 25% of bogus purchases value, later reduced to 5% by CIT(Appeals), lacked proper basis for profit quantification. Following precedent in Balaji Rice Industries, the Tribunal directed AO to restrict additions to the difference between gross profit rates of genuine versus bogus purchases, equalizing GP rates. Additionally, the Tribunal deleted the commission addition of 1% (scaled down from 5%) made on presumptive basis without supporting evidence. Matter remanded to AO for recalculation per directions. Case-Laws Income Tax Tue, 09 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=755431