No separate profit addition on recorded sales absent suppression, even where bogus purchases were already taxed.

Recorded sales could not be subjected to an additional 6% profit addition merely because the purchases were alleged to be from bogus parties, where the sales were already credited in the books and no material showed suppression of sales. The Court noted that an earlier 6% addition had already been sustained on the bogus purchases side, and held that no separate addition on the sales figure was permissible without evidence of undisclosed turnover. The revenue's challenge therefore failed.

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Issues: Whether profit at 6% could be estimated and added on sales allegedly made to bogus parties, despite the sales being recorded in the books of account and no evidence of suppression of sales being shown.

Analysis: The sales were already credited in the assessees' books of account. The earlier addition at 6% had already been sustained on the bogus purchases side. The Court found no material to show that the recorded sales were suppressed or that any separate addition could be made merely because the purchases were from bogus entities. In the absence of evidence of suppression of sales, no further addition on the sales figure was permissible.

Conclusion: No addition of profit at 6% on the recorded sales was warranted; the revenue's challenge failed.

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