The AO has disallowed 100% of alleged bogus expenses . On appeal the CIT(A) restricted the disallowance at 12% of the alleged bogus expenses . On appeal by the Revenue and the assessee, the Tribunal affirmed the order of the CIT( A) estimating the disallowance at 12% of alleged bogus expenditure . The Tribunal distinguished the ratio in Pr. CIT v. Kanak Impex (India) Ltd. Pr. CIT v. Kanak Impex (India) Ltd ( 2025) 474 ITR 175 / 172 Taxman.com 283 (Bom)( HC ). ( ITA Nos. 4147 to 4153 & 4585 to 4593/Mum/2024 dt. 3-07 -2025 ) ( AY. 2016 -17 to 2022 -23 )
J. Kumar Infraprojects Ltd. v. DCIT ( Mum) ( Trib) www.itatonline.org .
S. 69C: Unexplained expenditure – Alleged bogus purchases – Estimate of 12% of alleged bogus expenses are affirmed – Pr. CIT v. Kanak Impex (India) Ltd ( 2025) 474 ITR 175 / 172 Taxman.com 283 (Bom)( HC) distinguished . [ S. 37(1))