https://www.taxtmi.com/caselaws?id=763795 ITAT Mumbai upheld the validity of reassessment proceedings under Section 147 initiated based on information from Principal Director of Income Tax (Investigation) regarding alleged bogus purchases. The tribunal found sufficient tangible material existed for reassessment as the assessing officer reasonably believed income escaped assessment due to undisclosed bogus transactions. However, ITAT rejected adding the entire purchase price, directing the assessing officer to restrict addition to the difference between gross profit margins on genuine versus alleged bogus purchases, following Mohammad Haji Adam Co. precedent. Appeal decided partly in favor of assessee. en-us Mon, 04 Nov 2024 00:00:00 +0530 Fri, 03 Jan 2025 11:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763795 ITAT Mumbai upheld the validity of reassessment proceedings under Section 147 initiated based on information from Principal Director of Income Tax (Investigation) regarding alleged bogus purchases. The tribunal found sufficient tangible material existed for reassessment as the assessing officer reasonably believed income escaped assessment due to undisclosed bogus transactions. However, ITAT rejected adding the entire purchase price, directing the assessing officer to restrict addition to the difference between gross profit margins on genuine versus alleged bogus purchases, following Mohammad Haji Adam Co. precedent. Appeal decided partly in favor of assessee. Case-Laws Income Tax Mon, 04 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763795