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RU
ITAT Mumbai: Bogus Purchase Addition Limited to GP Rate of Genuine Purchases
['Author Info', 'Name', 'Qualification', 'Company', 'Location', 'Articles Published', 'View Full Profile', 'More Ca Sandeep Kanoi', 'August']
taxguruin
The assessments were reopened after information was received from the Sales Tax Department alleging that the assessee had made bogus purchases.
2011-12, representing 12.5% of the alleged bogus purchases.
The Assessment in this case was reopened upon receipt of information from the sales tax Department that assessee has made bogus purchases.
The income tax officer in this case has made 12.5% addition on account of bogus purchase resulting in disallowance of Rs.
It is settled law that when sales are not doubted, hundred percent disallowance for bogus purchase cannot be done.