https://www.taxtmi.com/caselaws?id=773891 The ITAT Ahmedabad upheld the principle that entire purchases cannot be disallowed merely because suppliers were non-genuine when sales are not disputed. The matter was remanded to the AO for limited verification of bank account details to establish any cash-back trail. If cash withdrawals and accommodation transactions are proven, full or partial disallowance may be made. However, if payments remained within the banking system without cash-back trail, addition should be restricted to embedded profit element at 5% as estimated by CIT(A). The AO must also verify outstanding balance of Rs. 15,09,016 representing 10.78% of total purchases and complete fresh assessment within defined scope. en-us Thu, 26 Jun 2025 00:00:00 +0530 Mon, 30 Jun 2025 08:43:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773891 The ITAT Ahmedabad upheld the principle that entire purchases cannot be disallowed merely because suppliers were non-genuine when sales are not disputed. The matter was remanded to the AO for limited verification of bank account details to establish any cash-back trail. If cash withdrawals and accommodation transactions are proven, full or partial disallowance may be made. However, if payments remained within the banking system without cash-back trail, addition should be restricted to embedded profit element at 5% as estimated by CIT(A). The AO must also verify outstanding balance of Rs. 15,09,016 representing 10.78% of total purchases and complete fresh assessment within defined scope. Case-Laws Income Tax Thu, 26 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773891