ITAT Mumbai Judgments — September 2017

The Tribunal upheld the addition of 12.5% of the alleged bogus purchases, considering that the assessee could not produce the concerned parties for verification. The Tribunal noted that the First Appellate Authority had already taken a lenient view.

The Tribunal upheld the addition made by the CIT(A) for Assessment Year 2006-07, finding no infirmity in plugging the leakage of revenue. For Assessment Year 2007-08, the addition was restricted to 12.5% of bogus purchases over the declared GP.

The Tribunal restored the issues back to the file of the Assessing Officer. The Tribunal found no objection from the Revenue's representative.

The Tribunal restored the issues back to the file of the Assessing Officer. The Tribunal found no objection from the Revenue's representative.

The Tribunal upheld the Commissioner (Appeals)'s decision to restrict the disallowance to 10% of the bogus purchases. They agreed that the entire amount could not be treated as income, but only the profit element embedded within the purchases.

The Tribunal held that while the purchases might not be entirely bogus, there was a likelihood of inflated prices. Therefore, a portion of the purchases was disallowed.

The Tribunal held that the loss from Jeevan Suraksha Fund should be set off against taxable income, following the Bombay High Court's decision. It also upheld the exemption of dividend income, relying on previous Tribunal rulings.

The Tribunal held that income from offshore supply contracts, where materials and equipment were supplied and the contract concluded outside India, is not taxable in India. This decision followed previous orders of the Tribunal on similar issues.