{"id":56592,"date":"2025-09-18T06:49:54","date_gmt":"2025-09-18T01:19:54","guid":{"rendered":"https:\/\/itatonline.org\/digest\/ito-v-khimchand-okchand-bhansali-2025-174-taxmann-com-148-smc-mum-trib\/"},"modified":"2025-09-18T06:49:54","modified_gmt":"2025-09-18T01:19:54","slug":"ito-v-khimchand-okchand-bhansali-2025-174-taxmann-com-148-smc-mum-trib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/ito-v-khimchand-okchand-bhansali-2025-174-taxmann-com-148-smc-mum-trib\/","title":{"rendered":"ITO v. Khimchand Okchand Bhansali [2025] 174 taxmann.com 148 (SMC ) (Mum ) Trib.)"},"content":{"rendered":"<p>Assessee was engaged in business of dealing in ferrous and non-ferrous metals . It made purchases through banking channels and filed relevant purchase invoices, copy of bank statements evidencing payment made through proper banking channels, chart showing details of purchases made from parties and corresponding sales\u00a0 \u00a0Assessing Officer held \u00a0that sales tax department had given information with regard to bogus accommodation entries on account of bogus purchases\/bills hence he estimated profit element at rate of 12.5 per cent of total purchases made by assessee which were claimed to be bogus and made addition under section 69C . \u00a0Commissioner (Appeals) restricted addition from 12.5 per cent to 4 per cent of bogus purchases\u00a0 . On appeal the Tribunal held that\u00a0 \u00a0since assessee had proved that transactions had been carried out through banking channels and Assessing Officer had not doubted same, addition made by Assessing Officer at rate of 12.5 per cent could not be restored , \u00a0however, considering peculiar facts and circumstances, addition was to be restricted at rate of 5 per cent instead of 4 per cent as restricted by Commissioner (Appeals) . Decision in <em>\u00a0<\/em>PCIT\u00a0v.\u00a0Kanak Impex (India) Ltd 2025] 474 ITR 175\u00a0\/ 172 taxmann.com 283\u00a0(Bom)( HC) \u00a0distinguished . \u00a0\u00a0\u00a0(AY. 2009 -10 , 2011 -12 )<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 69C : Unexplained expenditure &#8211; Bogus purchases   -Information from sales tax department &#8211; Bogus accommodation entries  &#8211; Purchases \u2013 Payments through banking channels \u2013 Sales accepted &#8211; Addition restricted to 5 percent &#8211; PCIT v.  Kanak Impex (India) Ltd. [2025] 474 ITR 175 \/ 172 taxmann.com 283 (Bom)( HC) distinguished. [ S. 143(3) ]  <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-56592","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-eIM","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56592","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=56592"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56592\/revisions"}],"predecessor-version":[{"id":56593,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56592\/revisions\/56593"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=56592"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=56592"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=56592"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}