https://www.taxtmi.com/caselaws?id=466881 Alleged bogus-purchase disallowance should be limited to an estimated profit or tax-impact element where corresponding sales are not disputed, rather than disallowing the entire purchase value. Purchase documents and bank payments may support the transactions, although non-production of suppliers can justify an adverse inference. In grey-market procurement cases, the relevant concern is the tax incidence and possible inflation of purchase cost, not necessarily the complete absence of purchases. A 5% disallowance is identified as appropriate, considering the business nature, VAT payment and the prior approach adopted for similar purchases. en-us Wed, 11 Sep 2019 00:00:00 +0530 Tue, 24 Feb 2026 21:08:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=466881 Alleged bogus-purchase disallowance should be limited to an estimated profit or tax-impact element where corresponding sales are not disputed, rather than disallowing the entire purchase value. Purchase documents and bank payments may support the transactions, although non-production of suppliers can justify an adverse inference. In grey-market procurement cases, the relevant concern is the tax incidence and possible inflation of purchase cost, not necessarily the complete absence of purchases. A 5% disallowance is identified as appropriate, considering the business nature, VAT payment and the prior approach adopted for similar purchases. Case-Laws Income Tax Wed, 11 Sep 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=466881