https://www.taxtmi.com/caselaws?id=778518 ITAT (DELHI) held only gross profit on unaccounted sales is taxable; taxation of unaccounted purchases is not required. The matter of computing profit on unaccounted sales and initial investment in purchases is remitted to the AO to determine afresh after giving the assessee an opportunity of being heard, and the CIT(A) order on this issue is set aside and restored to the AO. The CIT(A)'s restriction of unexplained expenditure addition to 8% of bogus purchases under section 69C is sustained as not perverse, given adjustments accepted in prior years' reassessment. en-us Fri, 17 Jan 2025 00:00:00 +0530 Tue, 16 Sep 2025 14:52:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=778518 ITAT (DELHI) held only gross profit on unaccounted sales is taxable; taxation of unaccounted purchases is not required. The matter of computing profit on unaccounted sales and initial investment in purchases is remitted to the AO to determine afresh after giving the assessee an opportunity of being heard, and the CIT(A) order on this issue is set aside and restored to the AO. The CIT(A)'s restriction of unexplained expenditure addition to 8% of bogus purchases under section 69C is sustained as not perverse, given adjustments accepted in prior years' reassessment. Case-Laws Income Tax Fri, 17 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=778518