Case Law Analysis
|Income Tax Appellate Tribunal
Section 69C Income Tax Act | 5% Lumpsum Disallowance on Bogus Purchases Permitted as Equitable Compromise, Not Precedent: ITAT Delhi
ITAT Delhi has sanctioned a 5% disallowance of Rs.31 lakh in alleged bogus purchases under Section 69C, treating it as a fair, non-precedential middle ground where full disallowance lacks evidentiary support but complete acceptance is untenable. This nuanced approach affects exporters and cash-intensive businesses facing disputed purchase trails, offering a new benchmark for adjudicating borderline cases without setting binding precedent.