https://www.taxtmi.com/caselaws?id=768885 ITAT Ahmedabad dismissed Revenue's appeal challenging deletion of GP estimation at 5% and 25% expense disallowance for alleged bogus purchases. Revenue failed to establish book rejection with supporting evidence, while assessee demonstrated GP reduction due to increased raw material costs. Addition under Section 68 for unexplained sundry creditors was deleted as assessee provided ledger accounts showing proper credit-debit transactions. Unexplained cash credit addition was also deleted following Gujarat HC precedent accepting loan repayments in subsequent years. However, capital work in progress addition was deleted after assessee clarified the amount represented personal assets already reflected in balance sheet, not requiring depreciation block inclusion. en-us Fri, 11 Apr 2025 00:00:00 +0530 Tue, 15 Apr 2025 08:35:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768885 ITAT Ahmedabad dismissed Revenue's appeal challenging deletion of GP estimation at 5% and 25% expense disallowance for alleged bogus purchases. Revenue failed to establish book rejection with supporting evidence, while assessee demonstrated GP reduction due to increased raw material costs. Addition under Section 68 for unexplained sundry creditors was deleted as assessee provided ledger accounts showing proper credit-debit transactions. Unexplained cash credit addition was also deleted following Gujarat HC precedent accepting loan repayments in subsequent years. However, capital work in progress addition was deleted after assessee clarified the amount represented personal assets already reflected in balance sheet, not requiring depreciation block inclusion. Case-Laws Income Tax Fri, 11 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768885