https://www.taxtmi.com/caselaws?id=440242 Whether additions for alleged bogus purchases should be made on the full purchase value or limited to the profit element was the dominant issue. The HC held that where the material was actually purchased and consumed in executing contracts, the purchases could not be wholly disallowed; only the embedded profit element could be brought to tax because cost must be deducted and tax cannot be levied on the entire purchase amount. In the absence of material justifying a higher margin, restricting the addition to 12.5% was upheld. The appeal was dismissed as no substantial question of law arose. en-us Wed, 05 Jul 2023 00:00:00 +0530 Wed, 07 Jan 2026 18:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=440242 Whether additions for alleged bogus purchases should be made on the full purchase value or limited to the profit element was the dominant issue. The HC held that where the material was actually purchased and consumed in executing contracts, the purchases could not be wholly disallowed; only the embedded profit element could be brought to tax because cost must be deducted and tax cannot be levied on the entire purchase amount. In the absence of material justifying a higher margin, restricting the addition to 12.5% was upheld. The appeal was dismissed as no substantial question of law arose. Case-Laws Income Tax Wed, 05 Jul 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=440242