SC Dismisses SLP on profit estimation vs. full disallowance in bogus purchases matter
The long-debated issue has been whether additions for bogus purchases should be made only on an estimated profit basis-on the premise that if sales are accepted, the assessee must have sourced goods from the grey market-rather than disallowing the entire purchase amount.
In a recent judgment, the Hon’ble Bombay High Court, based on the facts, held that the entire amount of bogus purchases was liable to be disallowed. The Hon’ble Supreme Court has now dismissed the SLP against this decision.
The copy of the order is as under:
