https://www.taxtmi.com/caselaws?id=463151 The ITAT Chandigarh upheld the rejection of the assessee's books of accounts due to bogus purchases from a related party, confirming the addition of income on account of cenvat credit claimed on such purchases. The tribunal agreed that the reversed cenvat entries indicated the income was rightly added. However, the addition related to gross profit on account of bogus liability was deleted, as the assessee showed improved gross profit compared to earlier years. The tribunal also allowed telescoping for the gross profit addition. Furthermore, the addition under section 40A(2)(a)(b) for interest paid at 15% to related parties was deleted, finding the interest rate reasonable and not excessive. en-us Tue, 23 Dec 2014 00:00:00 +0530 Fri, 08 Aug 2025 20:58:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=463151 The ITAT Chandigarh upheld the rejection of the assessee's books of accounts due to bogus purchases from a related party, confirming the addition of income on account of cenvat credit claimed on such purchases. The tribunal agreed that the reversed cenvat entries indicated the income was rightly added. However, the addition related to gross profit on account of bogus liability was deleted, as the assessee showed improved gross profit compared to earlier years. The tribunal also allowed telescoping for the gross profit addition. Furthermore, the addition under section 40A(2)(a)(b) for interest paid at 15% to related parties was deleted, finding the interest rate reasonable and not excessive. Case-Laws Income Tax Tue, 23 Dec 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=463151