https://www.taxtmi.com/highlights?id=94820 ITAT partly allowed the assessee's appeal in respect of addition for alleged bogus purchases treated as unexplained expenditure u/s 69C and taxed u/s 115BBE. While concurring that evidences of physical movement of goods were deficient, the Tribunal held that, given accepted corresponding sales and absence of rejection of books, only the profit element embedded in the disputed purchases could be taxed. Considering business nature, turnover and the assessee's concession, ITAT restricted the addition to 2% of the impugned purchases of Rs. 1,75,16,480/-, i.e., Rs. 3,50,330/-. It further held that such estimated profit does not fall under s.69C and is therefore taxable at normal rates, not u/s 115BBE. en-us Sat, 06 Dec 2025 08:46:10 +0530 Sat, 06 Dec 2025 08:46:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=94820 ITAT partly allowed the assessee's appeal in respect of addition for alleged bogus purchases treated as unexplained expenditure u/s 69C and taxed u/s 115BBE. While concurring that evidences of physical movement of goods were deficient, the Tribunal held that, given accepted corresponding sales and absence of rejection of books, only the profit element embedded in the disputed purchases could be taxed. Considering business nature, turnover and the assessee's concession, ITAT restricted the addition to 2% of the impugned purchases of Rs. 1,75,16,480/-, i.e., Rs. 3,50,330/-. It further held that such estimated profit does not fall under s.69C and is therefore taxable at normal rates, not u/s 115BBE. Highlights Income Tax Sat, 06 Dec 2025 08:46:10 +0530 https://www.taxtmi.com/highlights?id=94820