SC upholds HC ruling: Bogus bills and hawala transactions partially disallowed under trade law, adjusting gross profit rates

The SC dismissed the SLP due to a 1130-day delay and on merits, upholding the HC ruling that purchases involving bogus accommodation bills and hawala transactions cannot be wholly disallowed for a trader. Additions were limited to adjusting the gross profit rate on such purchases to align with genuine transactions. Pending applications were disposed of accordingly.

---

---

The Supreme Court, through Hon'ble Justices B. V. Nagarathna and K.V. Viswanathan, dismissed the Special Leave Petition filed with a delay of 1130 days. Relying on the precedent set in the order dated 03.03.2025 in SLP (C) D.No.31561/2024 (Principal Commissioner Of Income Tax 2 Thane Vs. Zahira R. Khatun), the Court dismissed the petition "both on the ground of delay as well as on merits." All pending applications were disposed of accordingly.

---