PCIT VS. MOHOMMAD HAJI ADAM (BOMBAY HIGH COURT)
I T A NO: 1012 of 2016
23-04-2019

S. 68/69 Bogus Purchases: Even if the purchases are bogus, the entire purchase amount cannot be added. As the department had not disputed the assessee's sales & there was no discrepancy between the purchases and the sales, the purchases cannot be rejected without disturbing the sales in case of a trader. The addition has to be restricted to the extent of the G. P. rate on purchases at the same rate of other genuine purchases (N. K .Industries 292 CTR 354 (Guj), N. K. Proteins 250 TM 22 (SC) distinguished).