https://www.taxtmi.com/caselaws?id=789416 Where purchases are suspected to be bogus but corresponding sales are accepted, the entire purchase amount should not be treated as income. The proper approach is to doubt only the genuineness of the purchases and bring to tax the profit element embedded in them, rather than make a 100% disallowance of the purchase value. On the stated facts, estimation of 8% of the disputed purchases was considered an appropriate method for taxation. en-us Mon, 06 Apr 2026 00:00:00 +0530 Wed, 08 Apr 2026 08:56:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789416 Where purchases are suspected to be bogus but corresponding sales are accepted, the entire purchase amount should not be treated as income. The proper approach is to doubt only the genuineness of the purchases and bring to tax the profit element embedded in them, rather than make a 100% disallowance of the purchase value. On the stated facts, estimation of 8% of the disputed purchases was considered an appropriate method for taxation. Case-Laws Income Tax Mon, 06 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789416