https://www.taxtmi.com/caselaws?id=764038 ITAT Mumbai ruled in favor of the assessee regarding bogus purchases and GP rate estimation. The AO applied 12.5% GP rate on purchases, but the tribunal found this unjustified when the assessee provided detailed purchase-sales correspondence, delivery challans, quantities, and banking channel payments with invoices. The addition was based solely on one person's statement about providing bogus bills, without specifically naming the assessee. Since quantitative purchase-sales details matched trading results and accepted gross profit, with corresponding one-to-one sales shown, no GP rate addition was warranted. The tribunal deleted the entire addition made by AO and partly confirmed by CIT(A). Appeal allowed. en-us Tue, 31 Dec 2024 00:00:00 +0530 Thu, 02 Jan 2025 08:13:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=764038 ITAT Mumbai ruled in favor of the assessee regarding bogus purchases and GP rate estimation. The AO applied 12.5% GP rate on purchases, but the tribunal found this unjustified when the assessee provided detailed purchase-sales correspondence, delivery challans, quantities, and banking channel payments with invoices. The addition was based solely on one person's statement about providing bogus bills, without specifically naming the assessee. Since quantitative purchase-sales details matched trading results and accepted gross profit, with corresponding one-to-one sales shown, no GP rate addition was warranted. The tribunal deleted the entire addition made by AO and partly confirmed by CIT(A). Appeal allowed. Case-Laws Income Tax Tue, 31 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=764038