https://www.taxtmi.com/caselaws?id=464873 ITAT Mumbai upheld the reopening of assessment u/s 147 on the basis of information from DGIT(Inv.) and the Sales Tax Department indicating bogus purchases from a named concern, holding that the AO had valid reason to believe income had escaped assessment. However, as payments were made by account payee cheques, supporting documents were furnished, and sales were accepted by the Revenue, the entire purchases could not be disallowed. Relying on HC precedents, the Tribunal held only the profit element was taxable and directed the AO to restrict disallowance to 12.5% of the disputed purchases, partly allowing the assessee's appeal. en-us Fri, 13 Apr 2018 00:00:00 +0530 Wed, 19 Nov 2025 20:57:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=464873 ITAT Mumbai upheld the reopening of assessment u/s 147 on the basis of information from DGIT(Inv.) and the Sales Tax Department indicating bogus purchases from a named concern, holding that the AO had valid reason to believe income had escaped assessment. However, as payments were made by account payee cheques, supporting documents were furnished, and sales were accepted by the Revenue, the entire purchases could not be disallowed. Relying on HC precedents, the Tribunal held only the profit element was taxable and directed the AO to restrict disallowance to 12.5% of the disputed purchases, partly allowing the assessee's appeal. Case-Laws Income Tax Fri, 13 Apr 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=464873