https://www.taxtmi.com/caselaws?id=346060 Where sales are accepted and purchases are supported by cheques and stock records, the entire purchase amount is not treated as income merely because the suppliers are found to be accommodation bill providers or linked to the grey market. In such bogus purchase cases, only a reasonable profit element is to be estimated rather than sustaining the full addition. Applying that principle, the income was recomputed by restricting the disallowance to 8% of the bogus purchases, and the full addition was deleted in favour of the assessee. en-us Wed, 31 May 2017 00:00:00 +0530 Thu, 03 Aug 2017 07:18:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=346060 Where sales are accepted and purchases are supported by cheques and stock records, the entire purchase amount is not treated as income merely because the suppliers are found to be accommodation bill providers or linked to the grey market. In such bogus purchase cases, only a reasonable profit element is to be estimated rather than sustaining the full addition. Applying that principle, the income was recomputed by restricting the disallowance to 8% of the bogus purchases, and the full addition was deleted in favour of the assessee. Case-Laws Income Tax Wed, 31 May 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=346060