https://www.taxtmi.com/caselaws?id=238478 Whether alleged purchases or the suppliers are bogus is a question of fact; the Tribunal's examination concluded that purchases of cloth and subsequent sale of finished goods occurred, so genuineness of transactions was upheld. Consequently, taxability is limited to the profit element embedded in those purchases rather than the entire purchase amount. Lack of a day-to-day stock register affects verification but does not automatically establish bogus transactions. The High Court declined Revenue's contention and affirmed the Tribunal's factbased finding, following earlier Gujarat High Court authority reaching a similar result. en-us Tue, 23 Oct 2012 00:00:00 +0530 Sat, 07 Feb 2026 10:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=238478 Whether alleged purchases or the suppliers are bogus is a question of fact; the Tribunal's examination concluded that purchases of cloth and subsequent sale of finished goods occurred, so genuineness of transactions was upheld. Consequently, taxability is limited to the profit element embedded in those purchases rather than the entire purchase amount. Lack of a day-to-day stock register affects verification but does not automatically establish bogus transactions. The High Court declined Revenue's contention and affirmed the Tribunal's factbased finding, following earlier Gujarat High Court authority reaching a similar result. Case-Laws Income Tax Tue, 23 Oct 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=238478