Summary
- The Delhi ITAT has restricted the gross profit addition on bogus purchase bills from 2.88% to 1% in the case of Kanta Devi Jalan, legal heir of Late Ved Prakash Agarwal.
- This decision follows an Income Tax Department investigation revealing that Agarwal's transactions were treated as accommodation entries based on third-party admissions.
- The Tribunal noted that while sales were accepted, the genuineness of purchases must be proven by the assessee, referencing earlier cases for consistency.
- This ruling emphasizes the need for careful examination of profit margins in similar assessments, without setting a binding precedent for future cases.
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