Additions towards Bogus purchases - Estimation of profit - ...

Adjust Profit & Loss: Remove Bogus Purchases and Sales; Reflect Lower Gross Profit; No Investment Addition Needed.

May 27, 2023

Case Laws Income Tax AT

Additions towards Bogus purchases - Estimation of profit - Purchases are to be removed, the corresponding sale is also required to be removed from the profit and loss account, sales is higher than the purchases in rupees terms, therefore, the addition would be only required to be made to the extent of lower gross profit on alleged bogus purchases then the regular gross profit. It is not the case of the AO that amount invested in acquiring the bogus purchases should also be considered as an addition, because the only addition is disallowance of bogus purchases, no further addition is warranted. - AT

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Additions towards Bogus purchases - Estimation of profit - ...

Adjust Profit & Loss: Remove Bogus Purchases and Sales; Reflect Lower Gross Profit; No Investment Addition Needed.

May 27, 2023

Case Laws Income Tax AT

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