https://www.taxtmi.com/caselaws?id=358076 Reassessment can be upheld where the tax authorities rely on tangible information from Sales Tax or investigation sources indicating accommodation entries or bogus purchase bills, because prima facie material is sufficient at the initiation stage. Where supplier notices remain unserved, the parties are not produced, and no reliable evidence of delivery or transport is furnished, the purchases may be treated as unverifiable. If sales are not doubted, however, full disallowance is not justified and only the profit element embedded in such purchases may be brought to tax. On those facts, the addition was restricted to 12.5% of the bogus purchases, giving partial relief to the assessee. en-us Mon, 02 Apr 2018 00:00:00 +0530 Thu, 05 Apr 2018 08:24:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=358076 Reassessment can be upheld where the tax authorities rely on tangible information from Sales Tax or investigation sources indicating accommodation entries or bogus purchase bills, because prima facie material is sufficient at the initiation stage. Where supplier notices remain unserved, the parties are not produced, and no reliable evidence of delivery or transport is furnished, the purchases may be treated as unverifiable. If sales are not doubted, however, full disallowance is not justified and only the profit element embedded in such purchases may be brought to tax. On those facts, the addition was restricted to 12.5% of the bogus purchases, giving partial relief to the assessee. Case-Laws Income Tax Mon, 02 Apr 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=358076