https://www.taxtmi.com/highlights?id=89102 ITAT adjudicated a tax dispute concerning alleged bogus purchases and income estimation. The tribunal found no evidence of undervalued sales or inflated purchases after examining documentary proof of raw material delivery to the assessee's factory in Himachal Pradesh. The CIT(A) had previously accepted the assessee's books of accounts. The tribunal dismissed the department's appeal, ruling that applying a 5.94% gross profit rate on alleged bogus purchases was unjustified. The court determined that purchases were made at par or lower rates compared to other transactions, negating potential additional income. Consequently, the tribunal allowed the assessee's appeal and rejected the department's claim of embedded profits in the contested purchases. en-us Thu, 05 Jun 2025 08:25:37 +0530 Thu, 05 Jun 2025 08:25:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=89102 ITAT adjudicated a tax dispute concerning alleged bogus purchases and income estimation. The tribunal found no evidence of undervalued sales or inflated purchases after examining documentary proof of raw material delivery to the assessee's factory in Himachal Pradesh. The CIT(A) had previously accepted the assessee's books of accounts. The tribunal dismissed the department's appeal, ruling that applying a 5.94% gross profit rate on alleged bogus purchases was unjustified. The court determined that purchases were made at par or lower rates compared to other transactions, negating potential additional income. Consequently, the tribunal allowed the assessee's appeal and rejected the department's claim of embedded profits in the contested purchases. Highlights Income Tax Thu, 05 Jun 2025 08:25:37 +0530 https://www.taxtmi.com/highlights?id=89102