Case Law Analysis
|Income Tax Appellate Tribunal
Section 69C Income Tax Act | ITAT Mumbai Caps Addition for Bogus Purchases at 12.5% Under Jurisdictional High Court Precedent
ITAT Mumbai upholds the addition of only 12.5% of alleged bogus purchases, relying on Bombay and Gujarat High Court rulings that limit tax liability to the profit element. The ruling dismisses the Revenue’s appeal for lack of material contradiction, reinforcing a standardized approach for hawala transaction cases under the Income Tax Act.