Bogus Purchases: Bombay HC Sustains ₹6 Crore Income Tax Addition using Peak of Purchases

The Bombay High Court sustained a ₹6 crore income tax addition made on account of bogus purchases, utilizing the "peak of purchases" method. This method involves estimating the unexplained investment based on the highest level of unsupported purchases during the relevant period. The court's decision indicates that it found sufficient evidence to conclude that the purchases were indeed bogus and that the peak method was an appropriate way to determine the undisclosed income.