https://www.taxtmi.com/caselaws?id=267211 The First Appellate Authority (FAA) upheld the disallowance of purchases totaling Rs. 3.09 Crores due to non-verifiability, citing lack of evidence and discrepancies. The FAA estimated net profit at 11% on turnover, despite the appellant's objections, considering financial performance. Failure to produce parties to prove purchase genuineness was crucial, impacting the assessment outcome. The FAA's application of a uniform net profit rate on all purchases was partially reversed by the tribunal, limiting disallowance to 11% of doubtful purchases or peak investment. The judgment emphasized verification, profit estimation, and burden of proof on the assessee in establishing transaction authenticity. en-us Wed, 22 Jul 2015 00:00:00 +0530 Mon, 02 Nov 2015 07:47:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=267211 The First Appellate Authority (FAA) upheld the disallowance of purchases totaling Rs. 3.09 Crores due to non-verifiability, citing lack of evidence and discrepancies. The FAA estimated net profit at 11% on turnover, despite the appellant's objections, considering financial performance. Failure to produce parties to prove purchase genuineness was crucial, impacting the assessment outcome. The FAA's application of a uniform net profit rate on all purchases was partially reversed by the tribunal, limiting disallowance to 11% of doubtful purchases or peak investment. The judgment emphasized verification, profit estimation, and burden of proof on the assessee in establishing transaction authenticity. Case-Laws Income Tax Wed, 22 Jul 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=267211