https://www.taxtmi.com/caselaws?id=457872 The Bombay HC upheld ITAT's decision that bogus purchases cannot be established without corresponding bogus sales, as business transactions would be impossible to complete otherwise. The court distinguished between bogus purchases and purchases from bogus entities. However, the HC remanded the matter to ITAT regarding the gross profit ratio calculation, noting the Tribunal failed to address the CIT(A)'s direction to apply 5% gross profit rate on alleged hawala purchases of Rs.2.45 crores instead of the assessee's declared 0.69% rate. en-us Wed, 12 Jul 2023 00:00:00 +0530 Sun, 29 Sep 2024 16:20:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=457872 The Bombay HC upheld ITAT's decision that bogus purchases cannot be established without corresponding bogus sales, as business transactions would be impossible to complete otherwise. The court distinguished between bogus purchases and purchases from bogus entities. However, the HC remanded the matter to ITAT regarding the gross profit ratio calculation, noting the Tribunal failed to address the CIT(A)'s direction to apply 5% gross profit rate on alleged hawala purchases of Rs.2.45 crores instead of the assessee's declared 0.69% rate. Case-Laws Income Tax Wed, 12 Jul 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=457872