https://www.taxtmi.com/caselaws?id=445394 ITAT Rajkot upheld CIT(A)'s decision to estimate profit at 7.5% of bogus purchases instead of treating entire purchase value as addition. CIT(A) considered assessee's gross profit rate of 9.52% and net profit of 2.09%, factoring probable VAT savings of 5% in grey market transactions. The estimation methodology followed established precedents from Sandeep Kumar Chandak and Sun Steel cases, later confirmed by Gujarat HC. Revenue failed to provide supporting documents for sustaining AO's complete addition. Appeal decided against revenue. en-us Fri, 03 Nov 2023 00:00:00 +0530 Mon, 06 Nov 2023 14:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445394 ITAT Rajkot upheld CIT(A)'s decision to estimate profit at 7.5% of bogus purchases instead of treating entire purchase value as addition. CIT(A) considered assessee's gross profit rate of 9.52% and net profit of 2.09%, factoring probable VAT savings of 5% in grey market transactions. The estimation methodology followed established precedents from Sandeep Kumar Chandak and Sun Steel cases, later confirmed by Gujarat HC. Revenue failed to provide supporting documents for sustaining AO's complete addition. Appeal decided against revenue. Case-Laws Income Tax Fri, 03 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445394