https://www.taxtmi.com/caselaws?id=299592 Where sales corresponding to disputed purchases are accepted as genuine, the full purchase value cannot be added as income merely because the purchases are unverifiable or not conclusively proved. In such cases, only the profit element embedded in the purchases is liable to be estimated and taxed on a reasonable basis, having regard to the nature of the trading activity. Applying that principle to trading in ferrous and non-ferrous metals, the addition was confined to 4% of the impugned purchases, with the balance disallowance set aside to that extent. en-us Tue, 03 Aug 2021 00:00:00 +0530 Tue, 21 Dec 2021 19:38:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=299592 Where sales corresponding to disputed purchases are accepted as genuine, the full purchase value cannot be added as income merely because the purchases are unverifiable or not conclusively proved. In such cases, only the profit element embedded in the purchases is liable to be estimated and taxed on a reasonable basis, having regard to the nature of the trading activity. Applying that principle to trading in ferrous and non-ferrous metals, the addition was confined to 4% of the impugned purchases, with the balance disallowance set aside to that extent. Case-Laws Income Tax Tue, 03 Aug 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=299592