https://www.taxtmi.com/caselaws?id=779238 ITAT held that additions for alleged bogus purchases, based solely on sales tax observations, were unsustainable. AO had accepted corresponding sales, records showed payment by account-payee cheques, stock reconciliation, and books were not rejected; AO produced no evidence of cash receipt or independent verification. Because AO failed to independently question payments and relied only on third-party remarks, the additions based on 12.5% profit element were deleted and the assessee's appeal was allowed. en-us Fri, 12 Sep 2025 00:00:00 +0530 Wed, 01 Oct 2025 09:07:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=779238 ITAT held that additions for alleged bogus purchases, based solely on sales tax observations, were unsustainable. AO had accepted corresponding sales, records showed payment by account-payee cheques, stock reconciliation, and books were not rejected; AO produced no evidence of cash receipt or independent verification. Because AO failed to independently question payments and relied only on third-party remarks, the additions based on 12.5% profit element were deleted and the assessee's appeal was allowed. Case-Laws Income Tax Fri, 12 Sep 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=779238