Only Profit on Bogus Purchases Taxable – Full Disallowance Unjustified: ITAT Mumbai

This ruling by ITAT Mumbai clarifies that only the profit component, not the entire amount, from alleged bogus purchases should be taxable if genuine sales are confirmed. Legal professionals need to consider this decision when advising clients on tax implications related to alleged bogus transactions, providing a precedent for similar cases and offering relief to taxpayers facing such challenges.