Estimation of income - Bogus purchases - CIT(A) has disallowed 25% of the purchases on the grounds that...

Estimation of income - Bogus purchases - CIT(A) has disallowed 25% of the purchases on the grounds that the assessee could have made some super profits - The tribunal found that, given the assessee's exports and corresponding sales, purchases were necessary for production. It concurred with the CIT(A)'s decision but adjusted the profit estimation embedded in the bogus purchases to 12.5%, based on judicial precedents and the specific facts of the case. .....

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