https://www.taxtmi.com/caselaws?id=466828 Alleged bogus purchases cannot be wholly added to income where declared sales are undisputed and quantitative purchase, sales and closing-stock records remain unrebutted. The addition must be confined to the embedded profit element, applying the gross profit rate prevailing on genuine purchases. Payments through account-payee cheques and reconciliation of purchases with sales supported limiting the adjustment rather than disallowing entire purchases. For the relevant assessment years, application of a 1% gross profit rate to the alleged bogus purchases was considered appropriate, replacing the higher rate applied earlier. en-us Tue, 25 Feb 2025 00:00:00 +0530 Fri, 20 Feb 2026 20:59:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=466828 Alleged bogus purchases cannot be wholly added to income where declared sales are undisputed and quantitative purchase, sales and closing-stock records remain unrebutted. The addition must be confined to the embedded profit element, applying the gross profit rate prevailing on genuine purchases. Payments through account-payee cheques and reconciliation of purchases with sales supported limiting the adjustment rather than disallowing entire purchases. For the relevant assessment years, application of a 1% gross profit rate to the alleged bogus purchases was considered appropriate, replacing the higher rate applied earlier. Case-Laws Income Tax Tue, 25 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=466828