https://www.taxtmi.com/caselaws?id=464906 ITAT Mumbai-AT held that the AO was not justified in applying the peak credit theory for alleged bogus purchases where corresponding sales were undisputed and no defects in books were established. The Tribunal observed that, at most, purchases could be treated as made from the grey market, not as entirely bogus, and restricted the addition to 5% of the alleged bogus purchases by directing estimation of profit at that rate. On the disallowance of deductions under ss. 80D and 80G, ITAT upheld the CIT(A)'s order remanding the matter to the AO for verification and fresh adjudication, allowing those grounds for statistical purposes. en-us Thu, 09 Mar 2023 00:00:00 +0530 Fri, 21 Nov 2025 14:03:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=464906 ITAT Mumbai-AT held that the AO was not justified in applying the peak credit theory for alleged bogus purchases where corresponding sales were undisputed and no defects in books were established. The Tribunal observed that, at most, purchases could be treated as made from the grey market, not as entirely bogus, and restricted the addition to 5% of the alleged bogus purchases by directing estimation of profit at that rate. On the disallowance of deductions under ss. 80D and 80G, ITAT upheld the CIT(A)'s order remanding the matter to the AO for verification and fresh adjudication, allowing those grounds for statistical purposes. Case-Laws Income Tax Thu, 09 Mar 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=464906