Court Upholds Reassessment for Bogus Purchases; Deletes Unexplained Loans u/s 69; Rejects Penny Stock Additions.

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....Reopening of assessment for bogus purchases was upheld as the Assessing Officer had credible information of money laundering and foreign outward remittances by entities with whom the assessee had transactions. Estimation of income from bogus purchases was sustained at 6% following judicial precedents. Addition u/s 69 for unexplained loans given was deleted as the advances were duly recorded in books of account. Addition of transactions in penny stocks was rejected as the investments were made from disclosed bank accounts and losses were incurred, following the reasoned decision of the Commissioner of Income Tax (Appeals).....