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

This ruling by ITAT Mumbai clarifying that only the profit from alleged bogus purchases should be taxable, not the entire amount, sets a precedent for similar cases. Tax professionals need to consider this nuanced approach in assessing and advising clients on such transactions to potentially reduce tax liabilities and avoid full disallowances.