https://www.taxtmi.com/caselaws?id=462235 ITAT Mumbai upheld CIT(A)'s decision restricting bogus purchase additions to 2% instead of 100%, following Bombay HC precedent in Nikunj Eximp case that non-appearance of suppliers alone cannot establish purchases as bogus. Only profit element should be considered for additions. ITAT also upheld CIT(A)'s reduction of commission addition from 2% to 0.25% of bogus purchases, noting AO failed to verify actual commission rates despite sales tax authorities' statements indicating 0.5-2% commission by hawala operators. en-us Wed, 27 Sep 2017 00:00:00 +0530 Tue, 03 Jun 2025 19:32:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462235 ITAT Mumbai upheld CIT(A)'s decision restricting bogus purchase additions to 2% instead of 100%, following Bombay HC precedent in Nikunj Eximp case that non-appearance of suppliers alone cannot establish purchases as bogus. Only profit element should be considered for additions. ITAT also upheld CIT(A)'s reduction of commission addition from 2% to 0.25% of bogus purchases, noting AO failed to verify actual commission rates despite sales tax authorities' statements indicating 0.5-2% commission by hawala operators. Case-Laws Income Tax Wed, 27 Sep 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462235