https://www.taxtmi.com/caselaws?id=459529 The ITAT dismissed the revenue's appeal, upholding the CIT(A)'s decision to direct the AO to recompute the addition based on the Gross Profit (GP) rate declared on genuine purchases. The Tribunal concurred that the GP on bogus purchases should align with the GP ratio applied to genuine purchases, emphasizing the need to consider the profit element rather than adding back the entire purchase amount as income. The AO was instructed to recompute the addition accordingly, reinforcing the importance of legal precedents in determining GP rates for non-genuine purchases. en-us Mon, 26 Aug 2024 00:00:00 +0530 Tue, 17 Dec 2024 18:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459529 The ITAT dismissed the revenue's appeal, upholding the CIT(A)'s decision to direct the AO to recompute the addition based on the Gross Profit (GP) rate declared on genuine purchases. The Tribunal concurred that the GP on bogus purchases should align with the GP ratio applied to genuine purchases, emphasizing the need to consider the profit element rather than adding back the entire purchase amount as income. The AO was instructed to recompute the addition accordingly, reinforcing the importance of legal precedents in determining GP rates for non-genuine purchases. Case-Laws Income Tax Mon, 26 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459529