https://www.taxtmi.com/caselaws?id=376671 The ITAT Mumbai upheld the CIT(A)'s decision, dismissing the Revenue's appeal challenging the 3% profit rate on non-genuine purchases. The judgment emphasized the need to balance tax treatment, considering industry practices and the genuineness of transactions in the diamond trading sector. The decision to restrict profit estimation at 3% on the disputed purchases aligned with justice, distinguishing between doubts on purchase parties and overall transactions. The ruling delves into profit estimation complexities and the interplay of sales and purchases in grey market scenarios, providing a nuanced approach to tax liability determination. en-us Thu, 28 Feb 2019 00:00:00 +0530 Wed, 13 Mar 2019 18:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=376671 The ITAT Mumbai upheld the CIT(A)'s decision, dismissing the Revenue's appeal challenging the 3% profit rate on non-genuine purchases. The judgment emphasized the need to balance tax treatment, considering industry practices and the genuineness of transactions in the diamond trading sector. The decision to restrict profit estimation at 3% on the disputed purchases aligned with justice, distinguishing between doubts on purchase parties and overall transactions. The ruling delves into profit estimation complexities and the interplay of sales and purchases in grey market scenarios, providing a nuanced approach to tax liability determination. Case-Laws Income Tax Thu, 28 Feb 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=376671