https://www.taxtmi.com/caselaws?id=467005 The article addresses disallowance of alleged non genuine purchases in income tax assessments and clarifies that where sales arising from such purchases are accepted as genuine, the entire purchase cannot be treated as non genuine; only the profit element embedded in those purchases may be disallowed, and that element must be reasonably estimated by the fact finding authority. Reliance on an unrelated precedent to enhance disallowance to 100% was rejected as inapt. Applying evidentiary deficiencies and trade nature, the reasonable estimated profit element for the years under review was fixed at 8% and the assessing officer directed to compute income accordingly. en-us Fri, 01 Oct 2021 00:00:00 +0530 Sun, 01 Mar 2026 10:28:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=467005 The article addresses disallowance of alleged non genuine purchases in income tax assessments and clarifies that where sales arising from such purchases are accepted as genuine, the entire purchase cannot be treated as non genuine; only the profit element embedded in those purchases may be disallowed, and that element must be reasonably estimated by the fact finding authority. Reliance on an unrelated precedent to enhance disallowance to 100% was rejected as inapt. Applying evidentiary deficiencies and trade nature, the reasonable estimated profit element for the years under review was fixed at 8% and the assessing officer directed to compute income accordingly. Case-Laws Income Tax Fri, 01 Oct 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=467005