https://www.taxtmi.com/caselaws?id=775100 The ITAT Ahmedabad addressed additions under section 69C for alleged bogus purchases. The assessee provided documentary evidence including VAT invoices, bank statements, and audited accounts, with sales remaining undisputed by the AO. While concerns existed regarding supplier genuineness and accommodation entry providers, the tribunal applied established legal principle that entire bogus purchase value should not be disallowed. Instead, only the profit element representing unexplained expenditure should be taxed to prevent revenue leakage. The tribunal restricted disallowance to 8% of the disputed purchases, finding this approach fair and reasonable given the available evidence and legal precedents governing bogus purchase cases. 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=775100 The ITAT Ahmedabad addressed additions under section 69C for alleged bogus purchases. The assessee provided documentary evidence including VAT invoices, bank statements, and audited accounts, with sales remaining undisputed by the AO. While concerns existed regarding supplier genuineness and accommodation entry providers, the tribunal applied established legal principle that entire bogus purchase value should not be disallowed. Instead, only the profit element representing unexplained expenditure should be taxed to prevent revenue leakage. The tribunal restricted disallowance to 8% of the disputed purchases, finding this approach fair and reasonable given the available evidence and legal precedents governing bogus purchase cases. Case-Laws Income Tax Thu, 17 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775100