https://www.taxtmi.com/caselaws?id=782944 ITAT Ahmedabad allowed the assessee's appeal partly. It held that, although absence of transportation and related evidences created doubt about the genuineness of purchases, the existence of corresponding accepted sales established that real trading had occurred. Applying settled law that entire purchases cannot be disallowed even where suppliers are unverifiable, the Tribunal restricted the addition to 2% of the disputed purchases, i.e., Rs. 3,50,330/-, as profit embedded in such purchases. Since the purchases were recorded in regular books and payments were made through banking channels, the addition so sustained was treated as estimated business income, outside the ambit of s. 69C, and therefore not taxable under s. 115BBE. en-us Fri, 28 Nov 2025 00:00:00 +0530 Sat, 06 Dec 2025 08:46:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782944 ITAT Ahmedabad allowed the assessee's appeal partly. It held that, although absence of transportation and related evidences created doubt about the genuineness of purchases, the existence of corresponding accepted sales established that real trading had occurred. Applying settled law that entire purchases cannot be disallowed even where suppliers are unverifiable, the Tribunal restricted the addition to 2% of the disputed purchases, i.e., Rs. 3,50,330/-, as profit embedded in such purchases. Since the purchases were recorded in regular books and payments were made through banking channels, the addition so sustained was treated as estimated business income, outside the ambit of s. 69C, and therefore not taxable under s. 115BBE. Case-Laws Income Tax Fri, 28 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782944