The assessee, Drisha Impex (P.) Ltd., engaged in trading of electric items, toys, and electronics, faced reassessment on the ground that purchases from certain parties were non-genuine. The Assessing Officer, after noting failure to produce audited books, stock register, delivery challans, supplier confirmations, and addresses, disallowed the peak of such purchases under section 69C. Enquiries revealed that suppliers did not exist at the stated locations, summons were returned unserved, and there was no correlation between purchases and sales. On appeal, the CIT (A) granted substantial relief, restricting disallowance to 1% of the alleged bogus purchases. The Revenue filed an appeal before the Hon’ble Tribunal which in turn confirmed that purchases were bogus, increased the disallowance to 3%, reasoning that only the profit element should be estimated as purchases were from the grey market. Upon further appeal, the Bombay High Court set aside the Tribunal’s order, holding that once purchases were found bogus, estimating only 3% was perverse and contrary to law. It restored the Assessing Officer’s addition, observing that the assessee failed to discharge its onus and that the Tribunal’s speculative reasoning was unjustified. The Assessee aggrieved by the order of the High Court, filed a Special Leave Petition before the Hon’ble Supreme Court. The Hon’ble Supreme Court dismissed the Assessee’s Special Leave Petition holding that there was no reason to interfere with the impugned order passed by the Hon’ble High Court.(AY. 2009-10, 2010-11)