https://www.taxtmi.com/caselaws?id=764631 The ITAT Mumbai upheld reassessment proceedings under section 147 based on information from Investigation Wing, finding sufficient material to form requisite belief that income escaped assessment. The tribunal confirmed addition under section 69C for bogus purchases from M/s Swastik Corporation, as the assessee failed to prove genuineness. However, following M. Haji Adam Co. precedent, the ITAT set aside CIT(A)'s order and directed AO to restrict addition by applying gross profit rate on bogus purchases at same rate as genuine purchases. If gross profit rate on bogus purchases was higher and already offered to tax, no further addition was warranted. Appeal allowed for statistical purposes. en-us Tue, 07 Jan 2025 00:00:00 +0530 Wed, 15 Jan 2025 07:36:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=764631 The ITAT Mumbai upheld reassessment proceedings under section 147 based on information from Investigation Wing, finding sufficient material to form requisite belief that income escaped assessment. The tribunal confirmed addition under section 69C for bogus purchases from M/s Swastik Corporation, as the assessee failed to prove genuineness. However, following M. Haji Adam Co. precedent, the ITAT set aside CIT(A)'s order and directed AO to restrict addition by applying gross profit rate on bogus purchases at same rate as genuine purchases. If gross profit rate on bogus purchases was higher and already offered to tax, no further addition was warranted. Appeal allowed for statistical purposes. Case-Laws Income Tax Tue, 07 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=764631