https://www.taxtmi.com/caselaws?id=344989 Where sales are accepted but purchases are not fully verifiable because suppliers are not produced and notices return unserved, the entire purchase value should not be disallowed. Only the profit element embedded in the impugned purchases can be estimated and brought to tax on a reasonable basis, having regard to the nature of business, accepted sales, and surrounding facts. Applying that approach, the estimated disallowance on alleged bogus purchases was reduced from 12.5% to 8%, and relief was granted to the assessee. en-us Mon, 27 Feb 2017 00:00:00 +0530 Tue, 04 Jul 2017 07:22:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=344989 Where sales are accepted but purchases are not fully verifiable because suppliers are not produced and notices return unserved, the entire purchase value should not be disallowed. Only the profit element embedded in the impugned purchases can be estimated and brought to tax on a reasonable basis, having regard to the nature of business, accepted sales, and surrounding facts. Applying that approach, the estimated disallowance on alleged bogus purchases was reduced from 12.5% to 8%, and relief was granted to the assessee. Case-Laws Income Tax Mon, 27 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=344989