Addition u/s 68 Should Be Restricted To Extent Of Gross Profit At Same Rate Of Genuine Purchases: ITAT [Read Order]
The Bench further observed that the gross profit ratio without alleged bogus purchases and corresponding sales is 5.407%, which will result in an addition of 0.3% of alleged bogus purchases of ₹1,15,86,557/-which would be minuscule.
The Bench of the Income Tax Appellate Tribunal ( ITAT ) comprising observed that addition under section 68 of the Income Tax Act, 1961 should be restricted to extent of gross profit at same rate of genuine purchases. On scrutiny of the assessee, Murtuza Abdul Gaffar Khan’s return, the Assessing Officer ( AO ) found…
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