https://www.taxtmi.com/caselaws?id=406208 Where sales are accepted and the purchases are treated as having been made from the grey market, the entire purchase value cannot be disallowed as bogus. The reasoning is that accepted sales imply corresponding purchases, so only the embedded profit element saving tax and related costs may be brought to tax. On the facts noted, documentary evidence existed but suppliers were not produced and adverse inference was drawn; still, the business results and sales were not doubted. Applying the same approach as in an earlier year, the disallowance was restricted to 12.5% of the alleged bogus purchases. en-us Wed, 10 Feb 2021 00:00:00 +0530 Fri, 09 Apr 2021 07:57:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=406208 Where sales are accepted and the purchases are treated as having been made from the grey market, the entire purchase value cannot be disallowed as bogus. The reasoning is that accepted sales imply corresponding purchases, so only the embedded profit element saving tax and related costs may be brought to tax. On the facts noted, documentary evidence existed but suppliers were not produced and adverse inference was drawn; still, the business results and sales were not doubted. Applying the same approach as in an earlier year, the disallowance was restricted to 12.5% of the alleged bogus purchases. Case-Laws Income Tax Wed, 10 Feb 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=406208