ITAT Restricts Bogus Purchase Addition to 1.15% Profit Element Despite Seller Denials:
ITAT held entire purchases cannot be disallowed where corresponding sales are accepted and stock records support transactions.
Accepted sales require corresponding purchases; only embedded profit in disputed purchases is taxable
Meetu Kumari
Jul 17, 2026Premium
ITAT Restricts Bogus Purchase Addition to 1.15% Profit Element Despite Seller Denials
ITAT held entire purchases cannot be disallowed where corresponding sales are accepted and stock records support transactions.
Also Read
ITAT Quashed Reassessment Proceedings as Section 148 Notices Issued Beyond Statutory Time LimitITAT Upholds Reassessment, Rejects Challenge Over Absence of Section 143(2) NoticeHigh Court Quashes Reassessment Notice Based on Retrospective Application of Section 55A AmendmentITAT Orders Fresh Assessment After Accepting NRI's Claim of Delay Due to Dubai Stay and COVID-19
About Author
Meetu Kumari
Content Manager
Meetu Kumari is an Experienced Advocate and Content Writer with 4+ years of demonstrated history of working in the law practice industry. Skilled in Developing Content, Researching, and Drafting. Strong professional with a Bachelor of Science (B.Sc.) focused on Law from Gujarat National Law University.
Meetu Kumari is an Experienced Advocate and Content Writer with 4+ years of demonstrated history of working in the law practice industry. Skilled in Developing Content, Researching, and Drafting. Strong professional with a Bachelor of Science (B.Sc.) focused on Law from Gujarat National Law University.
Studycafe
Jodhpur, Rajasthan, India
2231My Recent Articles
- ITAT Upholds Reassessment, Rejects Challenge Over Absence of Section 143(2) NoticePremium
- High Court Quashes Section 148 Notice Based on Wrong Assessee's Investigation ReportPremium
- ITAT Allows Set-Off of Brought Forward Business Loss Against Section 50 Capital GainsPremium
- High Court Quashes Reassessment Based on Mere Change of Opinion After ScrutinyPremium
- ITAT Refuses to Condoned 2,376-Day Delay, Dismisses Time-Barred Income Tax AppealPremium
Up Next
Loading suggestions…
Recent Posts
All Posts
Recent Posts
All Posts