https://www.taxtmi.com/caselaws?id=468972 In alleged bogus purchase cases, where the assessee substantiates purchases and corresponding sales with confirmations, stock reconciliation, quantitative details, invoices, VAT records and bank statements, and the Assessing Officer does not rebut that material, the purchases cannot be fully discarded. On those facts, the profit element may still be estimated, but the rate must be reasonable and supported by the record. Here, reliance on accommodation-entry information and third-party statements without demonstrated linkage to the supplier was insufficient, so the estimated addition was reduced and the profit element fixed at 2% instead of 12.5%. en-us Wed, 31 Jul 2019 00:00:00 +0530 Wed, 27 May 2026 10:14:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=468972 In alleged bogus purchase cases, where the assessee substantiates purchases and corresponding sales with confirmations, stock reconciliation, quantitative details, invoices, VAT records and bank statements, and the Assessing Officer does not rebut that material, the purchases cannot be fully discarded. On those facts, the profit element may still be estimated, but the rate must be reasonable and supported by the record. Here, reliance on accommodation-entry information and third-party statements without demonstrated linkage to the supplier was insufficient, so the estimated addition was reduced and the profit element fixed at 2% instead of 12.5%. Case-Laws Income Tax Wed, 31 Jul 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=468972