https://www.taxtmi.com/caselaws?id=467031 Where an assessee has disclosed profits from circular/back-to-back transactions in its books and there is no documentary or testimonial evidence, payer identification, or cash trail showing undisclosed receipts, additions based on presumptive estimates are unsustainable; the Tribunal therefore set aside the AO's method of adopting the higher of sales or purchases and applying a uniform 5% rate for unreported income as unsupported by material. Similarly, indirect and administrative expenses incurred to earn the disclosed income are allowable where disclosure and transactional nature justify those expenditures, and the appellate deletions and allowances were upheld. en-us Wed, 08 Oct 2025 00:00:00 +0530 Mon, 02 Mar 2026 11:18:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=467031 Where an assessee has disclosed profits from circular/back-to-back transactions in its books and there is no documentary or testimonial evidence, payer identification, or cash trail showing undisclosed receipts, additions based on presumptive estimates are unsustainable; the Tribunal therefore set aside the AO's method of adopting the higher of sales or purchases and applying a uniform 5% rate for unreported income as unsupported by material. Similarly, indirect and administrative expenses incurred to earn the disclosed income are allowable where disclosure and transactional nature justify those expenditures, and the appellate deletions and allowances were upheld. Case-Laws Income Tax Wed, 08 Oct 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=467031