https://www.taxtmi.com/caselaws?id=798568 Suppressed turnover arising from a disclosed business is taxable only to the extent of its reasonably estimated embedded profit where the purchases and source of goods are undisputed and no independent undisclosed business or unexplained investment is established. Gross unrecorded sales cannot be treated as income because they include the cost of goods; a 2% profit estimate was applied based on historical margins and the incremental nature of the receipts. Cash-payment disallowance under section 40A(3) requires payment-wise and recipient-wise verification. The statutory threshold applies to payments to the same person on a single day, not annual aggregate ledger balances, and applicable exceptions must be verified from supporting records. en-us Wed, 19 Aug 2026 00:00:00 +0530 Wed, 09 Sep 2026 08:20:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=798568 Suppressed turnover arising from a disclosed business is taxable only to the extent of its reasonably estimated embedded profit where the purchases and source of goods are undisputed and no independent undisclosed business or unexplained investment is established. Gross unrecorded sales cannot be treated as income because they include the cost of goods; a 2% profit estimate was applied based on historical margins and the incremental nature of the receipts. Cash-payment disallowance under section 40A(3) requires payment-wise and recipient-wise verification. The statutory threshold applies to payments to the same person on a single day, not annual aggregate ledger balances, and applicable exceptions must be verified from supporting records. Case-Laws Income Tax Wed, 19 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=798568