https://www.taxtmi.com/caselaws?id=760602 ITAT Chennai partially allowed the assessee's appeal regarding bogus purchases and sub-contractor expenses. The tribunal held that the AO could not rely solely on findings from earlier years without conducting proper verification for the current assessment year. Since the search occurred mid-year, there was insufficient evidence to establish that all purchases and expenses throughout the year were bogus. Considering the construction business nature requiring raw materials and sub-contractors, the tribunal estimated additions of 5% on alleged bogus purchases and 25% on bogus sub-contractor expenses. The addition for undisclosed interest income was deleted as it was consequential to loans addition already deleted in a previous order for AY 2020-21. en-us Thu, 17 Oct 2024 00:00:00 +0530 Wed, 23 Oct 2024 09:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760602 ITAT Chennai partially allowed the assessee's appeal regarding bogus purchases and sub-contractor expenses. The tribunal held that the AO could not rely solely on findings from earlier years without conducting proper verification for the current assessment year. Since the search occurred mid-year, there was insufficient evidence to establish that all purchases and expenses throughout the year were bogus. Considering the construction business nature requiring raw materials and sub-contractors, the tribunal estimated additions of 5% on alleged bogus purchases and 25% on bogus sub-contractor expenses. The addition for undisclosed interest income was deleted as it was consequential to loans addition already deleted in a previous order for AY 2020-21. Case-Laws Income Tax Thu, 17 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760602