https://www.taxtmi.com/caselaws?id=765428 The ITAT Delhi held that where an assessee made purchases from 22 parties that could not be verified beyond reasonable doubt, despite books of accounts being accepted by the AO, the purchases constituted unverifiable transactions requiring income estimation. The tribunal noted the assessee's historical gross profit rate averaged 1.55% over three years, with current year showing 1.6%. Considering the grey market nature of unverifiable purchases would yield higher profit margins, the tribunal estimated profit embedded in disputed purchases at 2.5% to meet justice requirements. The assessee's appeal was partly allowed. en-us Wed, 29 Jan 2025 00:00:00 +0530 Fri, 31 Jan 2025 07:54:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765428 The ITAT Delhi held that where an assessee made purchases from 22 parties that could not be verified beyond reasonable doubt, despite books of accounts being accepted by the AO, the purchases constituted unverifiable transactions requiring income estimation. The tribunal noted the assessee's historical gross profit rate averaged 1.55% over three years, with current year showing 1.6%. Considering the grey market nature of unverifiable purchases would yield higher profit margins, the tribunal estimated profit embedded in disputed purchases at 2.5% to meet justice requirements. The assessee's appeal was partly allowed. Case-Laws Income Tax Wed, 29 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765428