https://www.taxtmi.com/caselaws?id=353123 The appeals were partly allowed in the case against the Commissioner of Income Tax (Appeals) regarding alleged bogus purchases. The Assessing Officer's additions as unexplained expenditure were restricted to 25% of the purchase price based on the average G.P. ratio. The Tribunal directed the AO to estimate profit at 12.5% of the purchases for the relevant assessment years. The importance of substantiating expenditure claims and calculating profit elements from purchases was emphasized, along with considering past performance for determining income tax additions. en-us Wed, 11 Oct 2017 00:00:00 +0530 Thu, 28 Dec 2017 08:02:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=353123 The appeals were partly allowed in the case against the Commissioner of Income Tax (Appeals) regarding alleged bogus purchases. The Assessing Officer's additions as unexplained expenditure were restricted to 25% of the purchase price based on the average G.P. ratio. The Tribunal directed the AO to estimate profit at 12.5% of the purchases for the relevant assessment years. The importance of substantiating expenditure claims and calculating profit elements from purchases was emphasized, along with considering past performance for determining income tax additions. Case-Laws Income Tax Wed, 11 Oct 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=353123