https://www.taxtmi.com/caselaws?id=463174 The ITAT Surat held that additions for bogus purchases cannot be made without rejecting the books of accounts or identifying defects therein, especially when sales and stock records are undisputed. The assessee produced bills, invoices, and payments via account payee cheques, indicating purchases occurred, though possibly inflated. Since sales were not questioned, the tribunal restricted the addition to 5% of total bogus purchases, aligning with industry net profit norms. Mandatory interest under sections 234A, 234B, 234C, and 234D was upheld, but the assessee is entitled to consequential relief arising from this order. The appeal was disposed accordingly. en-us Thu, 06 Feb 2020 00:00:00 +0530 Mon, 11 Aug 2025 20:56:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=463174 The ITAT Surat held that additions for bogus purchases cannot be made without rejecting the books of accounts or identifying defects therein, especially when sales and stock records are undisputed. The assessee produced bills, invoices, and payments via account payee cheques, indicating purchases occurred, though possibly inflated. Since sales were not questioned, the tribunal restricted the addition to 5% of total bogus purchases, aligning with industry net profit norms. Mandatory interest under sections 234A, 234B, 234C, and 234D was upheld, but the assessee is entitled to consequential relief arising from this order. The appeal was disposed accordingly. Case-Laws Income Tax Thu, 06 Feb 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=463174