https://www.taxtmi.com/caselaws?id=464891 ITAT Mumbai upheld the finding that the assessee had made bogus purchases from hawala parties and that only the profit element embedded in such purchases was taxable. The Tribunal held that a 12.5% disallowance on the value of bogus purchases appropriately reflected the assessee's benefit from grey market transactions. However, it accepted the assessee's contention that the gross profit already disclosed on these purchases must be considered. Accordingly, ITAT modified the CIT(A) order and directed that the disallowance be restricted to 12.5% of the bogus purchases, reduced by the gross profit rate already declared by the assessee on those transactions. en-us Wed, 27 Feb 2019 00:00:00 +0530 Thu, 20 Nov 2025 13:34:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=464891 ITAT Mumbai upheld the finding that the assessee had made bogus purchases from hawala parties and that only the profit element embedded in such purchases was taxable. The Tribunal held that a 12.5% disallowance on the value of bogus purchases appropriately reflected the assessee's benefit from grey market transactions. However, it accepted the assessee's contention that the gross profit already disclosed on these purchases must be considered. Accordingly, ITAT modified the CIT(A) order and directed that the disallowance be restricted to 12.5% of the bogus purchases, reduced by the gross profit rate already declared by the assessee on those transactions. Case-Laws Income Tax Wed, 27 Feb 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=464891