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Grey Market Purchases Attract Only Profit Addition, Not Full Disallowance: ITAT Chandigarh
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AdvertisementPancham Jewellers Private Limited Vs DCIT (ITAT Chandigarh) ITAT Taxes Only 10% Profit on Bogus Purchase Bills, Deletes Section 40A(3) Disallowance The Income Tax Appellate Tribunal (ITAT), Chandigarh, partly allowed the assessee’s appeal for Assessment Year 2014-15 against the order of the Commissioner of Income Tax (Appeals), which had confirmed three additions/disallowances of ₹13,95,927, ₹1,34,630, and ₹1,09,200 arising from an assessment framed under Section 143(3) of the Income-tax Act.
The first issue concerned the disallowance of purchases amounting to ₹13,95,927 made fro...