https://www.taxtmi.com/caselaws?id=775097 The ITAT Delhi dismissed the Revenue's appeal regarding bogus purchases. The AO initially added 25% of turnover as gross profit, but CIT(A) restricted the addition to 2.46%. The Tribunal upheld CIT(A)'s decision, noting that while purchases appeared non-genuine, the assessee had declared sales that weren't disputed by the AO. The assessee had already declared 2.46% gross profit, and CIT(A) sustained an addition of 2.46%, totaling approximately 5% gross profit margin. The Tribunal found this consistent with precedents where ITAT Benches typically propose additions around 5% gross profit in bogus purchase cases. The Tribunal concluded that without purchases, the declared sales couldn't have been achieved, and found no reason to disturb CIT(A)'s findings. en-us Wed, 16 Jul 2025 00:00:00 +0530 Sat, 19 Jul 2025 08:25:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775097 The ITAT Delhi dismissed the Revenue's appeal regarding bogus purchases. The AO initially added 25% of turnover as gross profit, but CIT(A) restricted the addition to 2.46%. The Tribunal upheld CIT(A)'s decision, noting that while purchases appeared non-genuine, the assessee had declared sales that weren't disputed by the AO. The assessee had already declared 2.46% gross profit, and CIT(A) sustained an addition of 2.46%, totaling approximately 5% gross profit margin. The Tribunal found this consistent with precedents where ITAT Benches typically propose additions around 5% gross profit in bogus purchase cases. The Tribunal concluded that without purchases, the declared sales couldn't have been achieved, and found no reason to disturb CIT(A)'s findings. Case-Laws Income Tax Wed, 16 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775097