https://www.taxtmi.com/caselaws?id=297833 In bogus purchase cases, where purchases are found non-genuine and the books are rejected, the taxable addition should be confined to the profit element actually embedded in the purchases. If the assessee has already disclosed gross profit in the books, that declared profit must be given credit against the estimated rate so the addition is limited to the differential profit only. Applying the estimated rate mechanically to the full purchase value was treated as excessive, and relief was granted to the extent of the already declared gross profit. en-us Thu, 13 Jul 2017 00:00:00 +0530 Fri, 24 Sep 2021 07:18:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=297833 In bogus purchase cases, where purchases are found non-genuine and the books are rejected, the taxable addition should be confined to the profit element actually embedded in the purchases. If the assessee has already disclosed gross profit in the books, that declared profit must be given credit against the estimated rate so the addition is limited to the differential profit only. Applying the estimated rate mechanically to the full purchase value was treated as excessive, and relief was granted to the extent of the already declared gross profit. Case-Laws Income Tax Thu, 13 Jul 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=297833