https://www.taxtmi.com/caselaws?id=403281 Additions for alleged bogus purchases cannot rest on suspicion where corresponding sales are accepted, books of account are not rejected, section 145 is not invoked, and remand proceedings reveal no adverse material. Deletion is justified where disallowance would create an abnormal gross profit rate unsupported by the business record. Cash-deposit additions are also unsustainable when regular books record the transactions, supporting documents are available, and no defect or material discredits the explanation. On these facts, appellate deletion of both additions was upheld because conjecture alone cannot displace documented accounts and explained bank deposits. en-us Thu, 10 Dec 2020 00:00:00 +0530 Sat, 23 Jan 2021 10:49:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=403281 Additions for alleged bogus purchases cannot rest on suspicion where corresponding sales are accepted, books of account are not rejected, section 145 is not invoked, and remand proceedings reveal no adverse material. Deletion is justified where disallowance would create an abnormal gross profit rate unsupported by the business record. Cash-deposit additions are also unsustainable when regular books record the transactions, supporting documents are available, and no defect or material discredits the explanation. On these facts, appellate deletion of both additions was upheld because conjecture alone cannot displace documented accounts and explained bank deposits. Case-Laws Income Tax Thu, 10 Dec 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=403281