https://www.taxtmi.com/caselaws?id=343473 Where sales and contract receipts are accepted, purchases cannot be treated as wholly bogus merely because suppliers appear suspicious or accommodation-based. If the record does not prove that the purchases were non-existent and the assessee shows payment by account payee cheques and consumption of materials in execution of contracts, the proper tax treatment is to bring the profit element embedded in such purchases to tax rather than disallow the entire purchase value. On the factual appreciation recorded, the addition was restricted to 12.5% of the impugned purchases. en-us Wed, 24 May 2017 00:00:00 +0530 Fri, 26 May 2017 07:11:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=343473 Where sales and contract receipts are accepted, purchases cannot be treated as wholly bogus merely because suppliers appear suspicious or accommodation-based. If the record does not prove that the purchases were non-existent and the assessee shows payment by account payee cheques and consumption of materials in execution of contracts, the proper tax treatment is to bring the profit element embedded in such purchases to tax rather than disallow the entire purchase value. On the factual appreciation recorded, the addition was restricted to 12.5% of the impugned purchases. Case-Laws Income Tax Wed, 24 May 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=343473