https://www.taxtmi.com/caselaws?id=463171 Where sales were accepted and the books were not rejected, alleged bogus purchases from a supplier could not be taxed in full merely on third-party accommodation-entry information. The settled principle applied was that, in cases of unverifiable or bogus purchases, only the profit element embedded in the purchases is taxable. On the facts of the diamond trade, the appellate authority's estimate of 4% of the purchase value was treated as reasonable, and the Tribunal found no basis to interfere. The challenge by the Revenue therefore failed, and the addition remained confined to the estimated profit component rather than the entire purchase amount. en-us Wed, 29 Nov 2017 00:00:00 +0530 Fri, 08 Aug 2025 11:29:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=463171 Where sales were accepted and the books were not rejected, alleged bogus purchases from a supplier could not be taxed in full merely on third-party accommodation-entry information. The settled principle applied was that, in cases of unverifiable or bogus purchases, only the profit element embedded in the purchases is taxable. On the facts of the diamond trade, the appellate authority's estimate of 4% of the purchase value was treated as reasonable, and the Tribunal found no basis to interfere. The challenge by the Revenue therefore failed, and the addition remained confined to the estimated profit component rather than the entire purchase amount. Case-Laws Income Tax Wed, 29 Nov 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=463171