Dismissing the appeal of the revenue the Court held that ;when Assessing Officer had doubted genuineness of expenditure, he would require bringing to tax profit element so avoided by assessee and not the entire expenditure . ( AY.2009-10)
PCIT v. Juned B. Memon (2018) 256 Taxman 380 (Guj) (HC)
S. 40A(3) :Expenses or payments not deductible – Cash payments exceeding prescribed limits of Rs 20,000 -Inflated purchase expenditure by raising bogus claims – Only profit element embedded there in should be brought to tax and not the entire expenditure .[ S.37(1), 145 ]