https://www.taxtmi.com/caselaws?id=788424 When recorded purchases are alleged to be accommodation entries but the assessee produces invoices, e-way bills, transport receipts and bank payment records and corresponding sales are not disbelieved nor books rejected, a blanket disallowance as unexplained transactions is not mandatory; instead the tribunal directs that additional income embedded in suspect purchases may be estimated by applying a reasonable percentage where specific gross or net profit rates are absent, and remits the matter to the assessing officer to assess income at 3% on the disputed purchases in addition to profits declared in books. en-us Fri, 13 Mar 2026 00:00:00 +0530 Sat, 21 Mar 2026 08:29:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=788424 When recorded purchases are alleged to be accommodation entries but the assessee produces invoices, e-way bills, transport receipts and bank payment records and corresponding sales are not disbelieved nor books rejected, a blanket disallowance as unexplained transactions is not mandatory; instead the tribunal directs that additional income embedded in suspect purchases may be estimated by applying a reasonable percentage where specific gross or net profit rates are absent, and remits the matter to the assessing officer to assess income at 3% on the disputed purchases in addition to profits declared in books. Case-Laws Income Tax Fri, 13 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=788424