https://www.taxtmi.com/caselaws?id=782800 ITAT (Delhi) upheld the principle that where incriminating material establishes bogus purchases but corresponding sales/consumption are accepted, it is impermissible to treat the entire purchase value as income. The Tribunal affirmed the approach of taxing only the profit element embedded in such non-genuine purchases. However, it found the 20% rate of addition adopted by CIT(A) to be excessive and, exercising its appellate jurisdiction, reduced the addition to 15% of the value of disputed purchases as a reasonable estimate of profit. Consequently, the assessee's appeal was partly allowed with a restricted addition on account of bogus purchases. en-us Wed, 12 Nov 2025 00:00:00 +0530 Thu, 04 Dec 2025 09:19:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782800 ITAT (Delhi) upheld the principle that where incriminating material establishes bogus purchases but corresponding sales/consumption are accepted, it is impermissible to treat the entire purchase value as income. The Tribunal affirmed the approach of taxing only the profit element embedded in such non-genuine purchases. However, it found the 20% rate of addition adopted by CIT(A) to be excessive and, exercising its appellate jurisdiction, reduced the addition to 15% of the value of disputed purchases as a reasonable estimate of profit. Consequently, the assessee's appeal was partly allowed with a restricted addition on account of bogus purchases. Case-Laws Income Tax Wed, 12 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782800