https://www.taxtmi.com/caselaws?id=456671 Where sales are accepted, alleged bogus purchases are not disallowed in full; the addition is confined to the profit element embedded in the impugned purchases. Documentary support for the purchases, though weakened by non-production of suppliers and sales tax information, did not justify full disallowance because the corresponding sales were not doubted. The grey-market nature of the transactions supported an addition limited to the saving margin, and any gross profit already offered on the same transactions had to be adjusted to avoid double taxation. The disallowance was therefore restricted to the net margin element, with no further addition where declared gross profit exceeded the estimated margin. en-us Tue, 04 Feb 2020 00:00:00 +0530 Thu, 08 Aug 2024 09:13:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456671 Where sales are accepted, alleged bogus purchases are not disallowed in full; the addition is confined to the profit element embedded in the impugned purchases. Documentary support for the purchases, though weakened by non-production of suppliers and sales tax information, did not justify full disallowance because the corresponding sales were not doubted. The grey-market nature of the transactions supported an addition limited to the saving margin, and any gross profit already offered on the same transactions had to be adjusted to avoid double taxation. The disallowance was therefore restricted to the net margin element, with no further addition where declared gross profit exceeded the estimated margin. Case-Laws Income Tax Tue, 04 Feb 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456671