https://www.taxtmi.com/caselaws?id=394419 Where alleged bogus purchases are not fully disproved and sales are not rejected, the entire purchase value cannot be added as income; only the embedded profit element may be brought to tax on a reasonable estimate. The assessee had produced primary material, while the revenue inquiry remained inconclusive, so the addition was not sustained at 100%. Applying the settled approach for accommodation-entry or hawala purchases, the ITAT restricted the addition to 12.50% of the disputed purchases, with further allowance for gross profit already recorded in the regular books, and granted partial relief to the assessee. en-us Wed, 29 Jan 2020 00:00:00 +0530 Sat, 11 Apr 2020 10:51:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=394419 Where alleged bogus purchases are not fully disproved and sales are not rejected, the entire purchase value cannot be added as income; only the embedded profit element may be brought to tax on a reasonable estimate. The assessee had produced primary material, while the revenue inquiry remained inconclusive, so the addition was not sustained at 100%. Applying the settled approach for accommodation-entry or hawala purchases, the ITAT restricted the addition to 12.50% of the disputed purchases, with further allowance for gross profit already recorded in the regular books, and granted partial relief to the assessee. Case-Laws Income Tax Wed, 29 Jan 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=394419