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RU
ITAT Restricts Bogus Purchase Disallowance to 2% Where Sales Are Accepted
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AdvertisementSterling Steel Industries Vs ITO (ITAT Mumbai) The Mumbai Bench of the Income Tax Appellate Tribunal decided the assessee’s appeal for Assessment Year 2011-12 challenging the order of the Commissioner of Income Tax (Appeals), which had sustained a 12.5% disallowance on account of alleged bogus purchases.
The assessee was engaged in the business of ferrous and non-ferrous metals.
The assessment was reopened based on information received from the Sales Tax Department alleging that the assessee had made purchases from bogus dealers.
The Assessing Officer made an addition of 12.5% of the all...