https://www.taxtmi.com/caselaws?id=786222 The dispute concerns estimation of income from alleged bogus purchases and the correct quantum of addition. The ITAT found that purchases were likely made from other parties and that profit on such transactions would exceed the assessee's disclosed gross profit rate, rejecting a narrow addition limited to the disclosed GP element. However, applying the jurisdictional High Court's consistent principle that only the profit margin embedded in bogus purchases should be taxed, the ITAT directed an addition equal to 5% above the assessee's declared gross profit rate; Revenue's appeal was partly allowed. en-us Fri, 06 Feb 2026 00:00:00 +0530 Mon, 09 Feb 2026 09:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786222 The dispute concerns estimation of income from alleged bogus purchases and the correct quantum of addition. The ITAT found that purchases were likely made from other parties and that profit on such transactions would exceed the assessee's disclosed gross profit rate, rejecting a narrow addition limited to the disclosed GP element. However, applying the jurisdictional High Court's consistent principle that only the profit margin embedded in bogus purchases should be taxed, the ITAT directed an addition equal to 5% above the assessee's declared gross profit rate; Revenue's appeal was partly allowed. Case-Laws Income Tax Fri, 06 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786222