https://www.taxtmi.com/caselaws?id=469706 In alleged bogus purchase cases, where supplier notices remain unserved or unconfirmed and accommodation bills are inferred, the taxable addition should ordinarily be limited to the profit element embedded in the purchases if sales and business activity are not rejected. Applying that principle, the ITAT Mumbai held that a fair estimate at 10% of the purchase value was sufficient in view of the assessee's declared gross profit, instead of sustaining 12.5%. The addition was therefore restricted to 10% on the alleged bogus purchases. en-us Thu, 20 Dec 2018 00:00:00 +0530 Tue, 30 Jun 2026 13:03:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=469706 In alleged bogus purchase cases, where supplier notices remain unserved or unconfirmed and accommodation bills are inferred, the taxable addition should ordinarily be limited to the profit element embedded in the purchases if sales and business activity are not rejected. Applying that principle, the ITAT Mumbai held that a fair estimate at 10% of the purchase value was sufficient in view of the assessee's declared gross profit, instead of sustaining 12.5%. The addition was therefore restricted to 10% on the alleged bogus purchases. Case-Laws Income Tax Thu, 20 Dec 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=469706