https://www.taxtmi.com/caselaws?id=775102 The ITAT Ahmedabad held that where purchases from certain parties could not be verified as genuine, the entire purchase amount should not be added back as income when corresponding sales were properly accounted and offered for taxation. The tribunal found that GST assessment figures remaining undisturbed did not necessarily validate the genuineness of disputed purchases. However, following established judicial precedents, the tribunal determined that in cases involving unverifiable purchases where sales proceeds were duly recorded, the addition should be limited to the profit element embedded in such transactions. Consequently, the disallowance was restricted to 10% of the alleged bogus purchases rather than the full amount, recognizing that complete disallowance would be unreasonable given the proper accounting of corresponding sales revenue. en-us Thu, 17 Jul 2025 00:00:00 +0530 Sat, 19 Jul 2025 08:25:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775102 The ITAT Ahmedabad held that where purchases from certain parties could not be verified as genuine, the entire purchase amount should not be added back as income when corresponding sales were properly accounted and offered for taxation. The tribunal found that GST assessment figures remaining undisturbed did not necessarily validate the genuineness of disputed purchases. However, following established judicial precedents, the tribunal determined that in cases involving unverifiable purchases where sales proceeds were duly recorded, the addition should be limited to the profit element embedded in such transactions. Consequently, the disallowance was restricted to 10% of the alleged bogus purchases rather than the full amount, recognizing that complete disallowance would be unreasonable given the proper accounting of corresponding sales revenue. Case-Laws Income Tax Thu, 17 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775102