https://www.taxtmi.com/caselaws?id=783963 Whether entire alleged bogus purchases could be disallowed when corresponding sales were accepted. The ITAT held that, where sales are not doubted, outright disallowance of the full purchase amount is unwarranted; only the profit element embedded in such purchases can be brought to tax. Considering the facts and the assessee's past NP/GP ratios, the ITAT substituted the full disallowance with a lump-sum disallowance of 3% of the impugned purchases, expressly stating it would not operate as a precedent, and directed the AO to recompute income accordingly. en-us Mon, 01 Dec 2025 00:00:00 +0530 Fri, 26 Dec 2025 07:18:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783963 Whether entire alleged bogus purchases could be disallowed when corresponding sales were accepted. The ITAT held that, where sales are not doubted, outright disallowance of the full purchase amount is unwarranted; only the profit element embedded in such purchases can be brought to tax. Considering the facts and the assessee's past NP/GP ratios, the ITAT substituted the full disallowance with a lump-sum disallowance of 3% of the impugned purchases, expressly stating it would not operate as a precedent, and directed the AO to recompute income accordingly. Case-Laws Income Tax Mon, 01 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783963