The AO added outstanding credits in the name of various alleged bogus purchases . The CIT (A) restricted the additions to the profit element of 25 per cent. Both the assessee and the Department filed appeals before the Tribunal both of which were rejected. Dismissing the appeal of the revenue High Court up held the order of the Tribunal. (Referred N.K Proteins Ltd SLP No (C) 769 of 2017 , Vijay Proteins Ltd v. CIT ( 2018) 409 ITR 3 (St)(SC), N.K. Industries Ltd v. Dy.CIT ( 2016) 72 taxmann.com 289 (Guj) (HC) )
xCIT v. Nandkishor Huaschand Jalan. (2019) 412 ITR 357 (Guj)(HC)
S.69C: Unexplained expenditure – Bogus purchases – Sundry creditors – Only profit element embedded in credits can be taxed- Restricted to 25% of element of profit . [ S.37 , 69A ]