https://www.taxtmi.com/caselaws?id=789758 Where sales are duly recorded in audited books and the books are not rejected, the entire turnover cannot be brought to tax merely on third-party information or doubts about the seller's VAT registration without adequate verification. The principle applied was that only the profit element embedded in such sales may be taxed, not the full sales amount. On the facts, the addition under section 68 was not sustained in full, and the matter was directed to be recomputed by applying a 9% gross profit rate. en-us Wed, 08 Apr 2026 00:00:00 +0530 Tue, 14 Apr 2026 08:03:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789758 Where sales are duly recorded in audited books and the books are not rejected, the entire turnover cannot be brought to tax merely on third-party information or doubts about the seller's VAT registration without adequate verification. The principle applied was that only the profit element embedded in such sales may be taxed, not the full sales amount. On the facts, the addition under section 68 was not sustained in full, and the matter was directed to be recomputed by applying a 9% gross profit rate. Case-Laws Income Tax Wed, 08 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789758