https://www.taxtmi.com/caselaws?id=792348 Unsupported purchase disallowance cannot rest merely on some suppliers' failure to file returns where invoices, ledger accounts and bank payments support the transactions and no independent material shows accommodation entries. For detected unaccounted sales, only the profit element embedded in the receipts is taxable, not the entire turnover, and estimation on a net profit basis is appropriate. Cash entry-fee receipts at the factory gate may be restricted by reasonable extrapolation rather than full-year application of a limited sample. Where income has already been estimated on unaccounted transactions, a separate unexplained expenditure addition may be telescoped and deleted to avoid double taxation. en-us Thu, 21 May 2026 00:00:00 +0530 Wed, 27 May 2026 07:29:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=792348 Unsupported purchase disallowance cannot rest merely on some suppliers' failure to file returns where invoices, ledger accounts and bank payments support the transactions and no independent material shows accommodation entries. For detected unaccounted sales, only the profit element embedded in the receipts is taxable, not the entire turnover, and estimation on a net profit basis is appropriate. Cash entry-fee receipts at the factory gate may be restricted by reasonable extrapolation rather than full-year application of a limited sample. Where income has already been estimated on unaccounted transactions, a separate unexplained expenditure addition may be telescoped and deleted to avoid double taxation. Case-Laws Income Tax Thu, 21 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=792348