https://www.taxtmi.com/caselaws?id=782506 ITAT, Mumbai upheld the CIT(A)'s order restricting addition on alleged bogus purchases to 12.5%. The assessee, a manufacturer, had produced sufficient evidence before the AO to substantiate the purchases, and its sales were not disputed. Distinguishing the facts from Kanak Impex, where assessment was under section 144 and the source of purchases itself was doubted, the Tribunal held that only a profit element could be added. Accordingly, the disallowance at 12.5% was confirmed and the revenue's appeal was dismissed. en-us Fri, 01 Aug 2025 00:00:00 +0530 Fri, 28 Nov 2025 14:09:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782506 ITAT, Mumbai upheld the CIT(A)'s order restricting addition on alleged bogus purchases to 12.5%. The assessee, a manufacturer, had produced sufficient evidence before the AO to substantiate the purchases, and its sales were not disputed. Distinguishing the facts from Kanak Impex, where assessment was under section 144 and the source of purchases itself was doubted, the Tribunal held that only a profit element could be added. Accordingly, the disallowance at 12.5% was confirmed and the revenue's appeal was dismissed. Case-Laws Income Tax Fri, 01 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782506