https://www.taxtmi.com/caselaws?id=758401 ITAT Mumbai restricted disallowance of bogus purchases to 5% of disputed amount instead of total rejection. The tribunal followed coordinate bench precedent in Mafatlal Harakchandji Bothra case involving similar business circumstances. The decision aligned with Bombay HC ruling in Paramshakti Distributors Ltd., recognizing that reasonable disallowance addresses potential revenue leakage while avoiding excessive penalty. The assessee's appeal was partly allowed, with ground no.2 receiving partial relief through reduced disallowance percentage. en-us Tue, 10 Sep 2024 00:00:00 +0530 Thu, 12 Sep 2024 20:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=758401 ITAT Mumbai restricted disallowance of bogus purchases to 5% of disputed amount instead of total rejection. The tribunal followed coordinate bench precedent in Mafatlal Harakchandji Bothra case involving similar business circumstances. The decision aligned with Bombay HC ruling in Paramshakti Distributors Ltd., recognizing that reasonable disallowance addresses potential revenue leakage while avoiding excessive penalty. The assessee's appeal was partly allowed, with ground no.2 receiving partial relief through reduced disallowance percentage. Case-Laws Income Tax Tue, 10 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=758401