https://www.taxtmi.com/caselaws?id=784379 Whether additions for alleged bogus purchases/accommodation entries could be sustained without rejection of books and without corroborative enquiry was the dominant issue. The Tribunal held that the AO's ad hoc estimation (at 1% of purchases/sales/loans) was unsustainable because income was estimated without first rejecting the books of account; accordingly, the AO's addition was directed to be deleted. It further held that the first appellate authority's enhancement to add the entire purchases was untenable as it was made without bringing material on record or conducting any enquiry, and despite not disputing the corresponding sales/advances; reliance on a HC decision was found inapplicable on facts. The appellate order was set aside and the appeal was allowed. en-us Wed, 31 Dec 2025 00:00:00 +0530 Sat, 03 Jan 2026 08:03:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784379 Whether additions for alleged bogus purchases/accommodation entries could be sustained without rejection of books and without corroborative enquiry was the dominant issue. The Tribunal held that the AO's ad hoc estimation (at 1% of purchases/sales/loans) was unsustainable because income was estimated without first rejecting the books of account; accordingly, the AO's addition was directed to be deleted. It further held that the first appellate authority's enhancement to add the entire purchases was untenable as it was made without bringing material on record or conducting any enquiry, and despite not disputing the corresponding sales/advances; reliance on a HC decision was found inapplicable on facts. The appellate order was set aside and the appeal was allowed. Case-Laws Income Tax Wed, 31 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784379