https://www.taxtmi.com/caselaws?id=351469 Where purchases were doubted as accommodation entries, the ITAT noted that the Assessing Officer made no independent enquiry, while the disputed goods had entered stock and sales were supported by quantitative details. As the assessee still failed to prove the purchases from declared sources with confirmations or affidavits, an addition was justified. The Tribunal held, however, that departmental profit-rate guidance for normal transactions could not be applied mechanically to unproved purchases, and it estimated the embedded profit in the disputed purchases at 6%. The disallowance was accordingly restricted to 6% of the disputed purchases. en-us Wed, 22 Nov 2017 00:00:00 +0530 Sat, 25 Nov 2017 08:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=351469 Where purchases were doubted as accommodation entries, the ITAT noted that the Assessing Officer made no independent enquiry, while the disputed goods had entered stock and sales were supported by quantitative details. As the assessee still failed to prove the purchases from declared sources with confirmations or affidavits, an addition was justified. The Tribunal held, however, that departmental profit-rate guidance for normal transactions could not be applied mechanically to unproved purchases, and it estimated the embedded profit in the disputed purchases at 6%. The disallowance was accordingly restricted to 6% of the disputed purchases. Case-Laws Income Tax Wed, 22 Nov 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=351469