https://www.taxtmi.com/caselaws?id=795205 Bogus-purchase disallowance requires cogent evidence that transactions were sham after the taxpayer produces invoices, books, GST records, banking evidence and corresponding accepted sales. Supplier-record deficiencies alone do not establish fictitious purchases, particularly where books are not rejected and no cash trail, accommodation-entry evidence or undisclosed source of goods is shown. Purchases for the earlier assessment years were allowable; for the later year, weaker evidence justified assessment only of estimated embedded profit, not full disallowance. Closing-stock differences in seized accounting data could not create independent income where reconciliations showed unposted consumption and stock misclassification, with no physical undisclosed inventory or disproved purchases. The additions were deleted. en-us Tue, 14 Jul 2026 00:00:00 +0530 Sat, 18 Jul 2026 08:27:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795205 Bogus-purchase disallowance requires cogent evidence that transactions were sham after the taxpayer produces invoices, books, GST records, banking evidence and corresponding accepted sales. Supplier-record deficiencies alone do not establish fictitious purchases, particularly where books are not rejected and no cash trail, accommodation-entry evidence or undisclosed source of goods is shown. Purchases for the earlier assessment years were allowable; for the later year, weaker evidence justified assessment only of estimated embedded profit, not full disallowance. Closing-stock differences in seized accounting data could not create independent income where reconciliations showed unposted consumption and stock misclassification, with no physical undisclosed inventory or disproved purchases. The additions were deleted. Case-Laws Income Tax Tue, 14 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795205