https://www.taxtmi.com/caselaws?id=774114 Bogus purchase additions were examined where the assessee failed to prove delivery of goods through delivery challans, transport evidence, or octroi receipts, and notices to the alleged suppliers either went unserved or drew no response. As the purchases were not satisfactorily linked to corresponding sales, the purchases were treated as suspicious; however, the sales themselves were not rejected, making full disallowance excessive. On these facts, a reasonable estimate of the profit element embedded in the impugned purchases was applied, and the disallowance was restricted to 10% of such purchases rather than the higher addition proposed. en-us Mon, 30 Jun 2025 00:00:00 +0530 Thu, 03 Jul 2025 08:34:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774114 Bogus purchase additions were examined where the assessee failed to prove delivery of goods through delivery challans, transport evidence, or octroi receipts, and notices to the alleged suppliers either went unserved or drew no response. As the purchases were not satisfactorily linked to corresponding sales, the purchases were treated as suspicious; however, the sales themselves were not rejected, making full disallowance excessive. On these facts, a reasonable estimate of the profit element embedded in the impugned purchases was applied, and the disallowance was restricted to 10% of such purchases rather than the higher addition proposed. Case-Laws Income Tax Mon, 30 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774114