https://www.taxtmi.com/caselaws?id=782739 The ITAT Mumbai allowed the assessee's appeal in respect of alleged bogus purchases. The AO had disallowed the entire amount of purchases based solely on suspicion arising from delivery challans indicating transport by hand carts, despite the assessee having furnished all primary evidentiary documents. Treating the purchases as otherwise genuine, the ITAT held that only the profit element embedded in such purchases could be disallowed. It directed the AO to restrict the disallowance to the assessee's declared gross profit rate of 11.54% on Rs. 32,75,050. en-us Tue, 11 Nov 2025 00:00:00 +0530 Wed, 03 Dec 2025 08:57:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782739 The ITAT Mumbai allowed the assessee's appeal in respect of alleged bogus purchases. The AO had disallowed the entire amount of purchases based solely on suspicion arising from delivery challans indicating transport by hand carts, despite the assessee having furnished all primary evidentiary documents. Treating the purchases as otherwise genuine, the ITAT held that only the profit element embedded in such purchases could be disallowed. It directed the AO to restrict the disallowance to the assessee's declared gross profit rate of 11.54% on Rs. 32,75,050. Case-Laws Income Tax Tue, 11 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782739