Case Law Analysis
|Income Tax Appellate Tribunal
Section 69C IT Act | Return of Goods Nullifies Fictitious Purchase Claim; Only Retained Stock Subject to 15% Gross Profit Addition : ITAT Delhi
ITAT Delhi ruled that when goods purchased under suspicion of fictitious transactions are fully returned, the purchase claim is extinguished - only the retained stock (Rs.26 lakh) attracts a 15% gross profit addition under Section 69C. This clarifies that genuine returns, even after delay, rebut the presumption of bogus purchases, offering critical relief to traders facing speculative tax assessments.