Dismissing the appeals of the Revenue the Tribunal held that though the assessee had failed to substantiate the identity of the parties before the Assessing Officer, the entire transactions were made through banking channels. The sales were also executed depending on the purchase of materials. The purchases and sales were interlinked transaction. The Assessing Officer had not rejected the sales of the assessee. The calculation of addition at 12.5 per cent. of the bogus purchases is acceptable.(AY.2011-12)
ITO v. Chandresh Chhaganlal Mehta (2024) 111 ITR 93 (SN) (Mum)(Trib) ITO v. Mustafa Zainuddin Nalawala (2024)111 ITR 93 (SN) (Mum)(Trib)
S. 69C : Unexplained expenditure-Income from undisclosed sources-Bogus purchases-Accommodation entries-Information from Sales Tax Department-Addition aat 12.5 Per Cent. of bogus purchases is held to be justified.