https://www.taxtmi.com/caselaws?id=798223 Unverifiable purchases may justify rejecting books of account to that extent where the supplier cannot be produced, stock records are lacking, and adverse information undermines purchase invoices. Where manufacturing, corresponding sales, and business use of goods are accepted, with no evidence that goods were not received or used, the full purchase value should not be taxed. The addition may instead be confined to the profit element from procurement through unrecorded sources; an estimate of 12.5% was treated as reasonable based on the disclosed gross-profit rate and consistent treatment of similar transactions. en-us Mon, 31 Aug 2026 00:00:00 +0530 Thu, 03 Sep 2026 08:20:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=798223 Unverifiable purchases may justify rejecting books of account to that extent where the supplier cannot be produced, stock records are lacking, and adverse information undermines purchase invoices. Where manufacturing, corresponding sales, and business use of goods are accepted, with no evidence that goods were not received or used, the full purchase value should not be taxed. The addition may instead be confined to the profit element from procurement through unrecorded sources; an estimate of 12.5% was treated as reasonable based on the disclosed gross-profit rate and consistent treatment of similar transactions. Case-Laws Income Tax Mon, 31 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=798223