https://www.taxtmi.com/caselaws?id=456589 The ITAT Mumbai reduced the addition for bogus purchases from 12.5% to 6.5% of the purchase value. The CIT(A) had sustained the 12.5% addition but failed to consider the assessee's submission regarding gross profit margins from earlier and subsequent assessment years. The Tribunal noted that in a similar case involving the assessee's brother, a coordinate bench had sustained disallowance at 6.5%. Given the assessee's declared gross profit of 5.76%, the Tribunal held that 6.5% disallowance would be sufficient to prevent revenue leakage. The assessee's appeal was partly allowed with the disallowance restricted to 6.5%. en-us Mon, 06 Aug 2018 00:00:00 +0530 Fri, 02 Aug 2024 20:16:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456589 The ITAT Mumbai reduced the addition for bogus purchases from 12.5% to 6.5% of the purchase value. The CIT(A) had sustained the 12.5% addition but failed to consider the assessee's submission regarding gross profit margins from earlier and subsequent assessment years. The Tribunal noted that in a similar case involving the assessee's brother, a coordinate bench had sustained disallowance at 6.5%. Given the assessee's declared gross profit of 5.76%, the Tribunal held that 6.5% disallowance would be sufficient to prevent revenue leakage. The assessee's appeal was partly allowed with the disallowance restricted to 6.5%. Case-Laws Income Tax Mon, 06 Aug 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456589