VINOD KUMAR,KARNAL vs. ITO WARD-4, KARNAL
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
This assessee’s appeal for Assessment Year 2011-12, arises against the CIT(A)/NFAC, Delhi’s DIN & order No.
ITBA/NFAC/S/250/2024-25/1072846641(1) dated 03.02.2025, in proceedings u/s 147 r.w.s. 143(3) of the Income Tax Act,
1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
It transpires during the course of hearing that both the learned lower authorities have treated the assessee’s purchases of Rs.34,18,150/- as bogus once since sourced from M/s Kamna Overseas which was found to be an accommodation entry provider as per the DDIT(Karnal)’s report after due investigation. It is in this factual backdrop that both the learned lower authorities have treated the aforesaid impugned Vinod Kumar
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purchases as unexplained expenditure u/s 69C of the Act in assessment order dated 20.12.2018 and upheld in the lower appellate discussion.
I have given my thoughtful consideration to the assessee’s and the Revenue vehement rival submissions reiterating their respective stands. Coming to the impugned alleged bogus purchase disallowance, the department could hardly dispute that it’s corresponding sales have nowhere been doubted as duly declared in the P&L account. This is indeed coupled with the fats that the assessee has not been able to plead and prove the impugned purchases as genuine by filing the corresponding relevant supportive evidence. It is thus deemed appropriate in these peculiar facts that the assessee’s impugned bogus purchases of Rs.34,18,150/- deserve to be disallowed at a lump sum rate of 10% with a rider that the same shall not be treated as a precedent. Necessary computation shall follow as per law.
No other ground or argument has been raised.
This assessee’s appeal is partly allowed. Order Pronounced in the Open Court on 03/07/2025. (Satbeer Singh Godara)
Judicial Member
Dated: 03/07/2025
*Subodh Kumar, Sr. PS*