INCOME TAX OFFICER, DELHI vs. AKASH DEEP SETHI, DELHI

ITA 4973/DEL/2024Status: DisposedITAT Delhi16 July 2025AY 2021-22Bench: SHRI CHALLA NAGENDRA PRASAD (Judicial Member), SHRI S. RIFAUR RAHMAN (Accountant Member)6 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the lower appellate authority's decision to treat purchases as non-genuine but restricted the addition to 2.46% of the turnover as net profit, aligning with the assessee's declared average gross profit over three years.

What were the facts?

The assessee, engaged in copper wire manufacturing, declared total income of Rs. 13,14,900/-. The Assessing Officer (AO) doubted the genuineness of purchases amounting to Rs. 17,39,39,757/- as suppliers did not respond to notices. The AO added 25% of the turnover as profit.

What were the issues?

The primary issue was the genuineness of business purchases claimed by the assessee, especially when suppliers failed to respond to notices. The secondary issue was the estimation of profit in case of non-genuine purchases.

Which sections of the Income-tax Act were involved?

Section 133(6),Section 142(1),Section 143(3),Section 44AB

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Income Tax Appellate Tribunal, DELHI BENCH ‘A’: NEW DELHI

Before: SHRI CHALLA NAGENDRA PRASAD & SHRI S. RIFAUR RAHMAN

For Appellant: Shri Ved Jain, Advocate, Shri Aman Garg, CA, Ms. Kirti, CA
For Respondent: Shri Ajay Kumar Arora, Sr. DR
Hearing: 27.05.2025

Heard together (2 matters)

CO No.26/Del/2025
ITA No.4973/DEL/2024

Read from the judgment's own cause title. This page is filed under one of them.

PER S.RIFAUR RAHMAN, ACCOUNTANT MEMBER :

1.

This appeal is filed by the assessee against the order of ld. Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi

2 CO No.26/Del/2025 [hereinafter referred to as ‘ld. CIT (A)] dated 27.06.2024 for Assessment Year 2021-22. The assessee has also filed cross objections against the aforesaid order of the ld. CIT (A).

2.

Brief facts of the case are, assessee filed its return of income on 12.01.2022 declaring total income of Rs.13,14,900/-. The asse

The order continues below.

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