https://www.taxtmi.com/caselaws?id=310402 Bogus purchases may be disallowed in full where a civil contractor fails to prove the suppliers' existence or the actual receipt, movement and consumption of materials. Absence of stock records, delivery documents, weighment slips, octroi receipts, goods-received notes or comparable evidence supported treatment of the invoices as fictitious. Declared sales did not independently establish that the purchases were genuine or justify restricting the addition to the gross-profit element. The gross-profit approach was distinguished on the facts, and the full amount debited for unsupported purchases was disallowed, restoring the assessment in favour of Revenue. en-us Tue, 15 Nov 2022 00:00:00 +0530 Sun, 22 Oct 2023 21:43:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310402 Bogus purchases may be disallowed in full where a civil contractor fails to prove the suppliers' existence or the actual receipt, movement and consumption of materials. Absence of stock records, delivery documents, weighment slips, octroi receipts, goods-received notes or comparable evidence supported treatment of the invoices as fictitious. Declared sales did not independently establish that the purchases were genuine or justify restricting the addition to the gross-profit element. The gross-profit approach was distinguished on the facts, and the full amount debited for unsupported purchases was disallowed, restoring the assessment in favour of Revenue. Case-Laws Income Tax Tue, 15 Nov 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310402