https://www.taxtmi.com/caselaws?id=458641 ITAT Mumbai held that for bogus purchases, addition should be restricted to 12.5% of the bogus purchase amount rather than the full value. The tribunal relied on Gujarat HC precedents and considered the profit element embedded in such transactions, factoring in benefits from grey market purchases and VAT advantages. The CIT(A)'s order was set aside, directing the AO to limit additions to 12.5% of bogus purchases. The assessee's appeal was partly allowed. en-us Wed, 28 Feb 2018 00:00:00 +0530 Mon, 11 Nov 2024 18:57:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=458641 ITAT Mumbai held that for bogus purchases, addition should be restricted to 12.5% of the bogus purchase amount rather than the full value. The tribunal relied on Gujarat HC precedents and considered the profit element embedded in such transactions, factoring in benefits from grey market purchases and VAT advantages. The CIT(A)'s order was set aside, directing the AO to limit additions to 12.5% of bogus purchases. The assessee's appeal was partly allowed. Case-Laws Income Tax Wed, 28 Feb 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=458641