https://www.taxtmi.com/caselaws?id=465161 ITAT Mumbai partly allowed the assessee's appeal concerning addition on account of alleged bogus purchases from entities linked to a known accommodation entry provider. The Tribunal noted that, for AYs 2007-08 to 2010-11, the assessee had consistently disclosed gross profit rates exceeding the benchmark adopted by the Government task force for the diamond industry. Considering the already high declared margins and earlier ITAT decisions in similar matters, the Tribunal held that only a profit element was taxable and restricted the disallowance to 2% of the impugned purchases, reducing the addition made by the revenue. en-us Tue, 28 Feb 2023 00:00:00 +0530 Mon, 08 Dec 2025 18:58:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465161 ITAT Mumbai partly allowed the assessee's appeal concerning addition on account of alleged bogus purchases from entities linked to a known accommodation entry provider. The Tribunal noted that, for AYs 2007-08 to 2010-11, the assessee had consistently disclosed gross profit rates exceeding the benchmark adopted by the Government task force for the diamond industry. Considering the already high declared margins and earlier ITAT decisions in similar matters, the Tribunal held that only a profit element was taxable and restricted the disallowance to 2% of the impugned purchases, reducing the addition made by the revenue. Case-Laws Income Tax Tue, 28 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465161