https://www.taxtmi.com/caselaws?id=424062 The HC dismissed the revenue appeal, upholding the ITAT's deletion of the addition and penalty. The court held that where sales are accepted, proven bogus purchases need not be wholly added to income since sales cannot exist without corresponding purchases, so a proportionate disallowance rather than total addition was appropriate. Regarding s.41(1) cessation of liability, the HC ruled that a liability barred by limitation does not cease to be a debt and thus cannot be treated as income merely because it is time-barred. en-us Fri, 10 Jun 2022 00:00:00 +0530 Wed, 20 Aug 2025 18:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=424062 The HC dismissed the revenue appeal, upholding the ITAT's deletion of the addition and penalty. The court held that where sales are accepted, proven bogus purchases need not be wholly added to income since sales cannot exist without corresponding purchases, so a proportionate disallowance rather than total addition was appropriate. Regarding s.41(1) cessation of liability, the HC ruled that a liability barred by limitation does not cease to be a debt and thus cannot be treated as income merely because it is time-barred. Case-Laws Income Tax Fri, 10 Jun 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=424062