Loading judgment…
Facts
The Revenue appealed against an order that reduced an addition made by the Assessing Officer regarding non-genuine purchases. The Assessing Officer had added 12.5% of the purported bogus purchases as profit element, while the CIT(A) reduced it to 10%. The appeal was filed with a delay of 31 days.
Held
The Tribunal upheld the decision of the CIT(A) in restricting the addition to 10% of the bogus purchases. The Tribunal found that the CIT(A)'s decision was based on the merits of the case and relied on judgments from the High Court and the Coordinate Bench of the Tribunal.
Key Issues
Whether the CIT(A)'s reduction of the addition on account of bogus purchases to 10% is sustainable in law. The delay in filing the appeal by the Revenue.
Sections Cited
250, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI
This appeal has been preferred by the Revenue against the order dated 24.12.2024, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2009-10.
At the outset, it is observed that there is a delay of 31 days in filing the instant appeal, on which the revenue has demonstrated the
Coming to the merits of the case, it is observed that in the instant case, the Assessing Officer (AO) vide assessment order dated 13.03.2015, has made the addition of Rs. 1,09,995/- being 12.5% of the non-genuine purchase of Rs. 8,79,961/- as profit element involved to meet the end of justice. The Ld. Commissioner on appeal further reduced the said addition to the extent of 10% of the bogus purchases by following the judgment of the Hon'ble Coordinate bench of the Tribunal in the case of Leela Behen Kantilal Parikh vs. ITO (ITA No. 2926/Mum/2023), decided on 29.12.2023, wherein the Hon'ble Bench restricted the addition to the extent of 10% the bogus purchases by following the judgement of the Hon'ble Jurisdictional High Court in the case of PCIT vs. Param Shanti Distributors Limited (ITA No. 413 of 2017) decided on 15.07.2019.
Thus, the revenue being aggrieved has preferred instant appeal.
This Court by giving thoughtful consideration to the determinations made by the Authorities below, is of the considered opinion that decision of the Ld. Commissioner in restricting the addition to the tune @10% of the bogus purchase as alleged, is not only based on the merits of the case but also based on the judgements of the Hon'ble High Court and Hon'ble Coordinate Bench of the Tribunal referred to above. Thus, there is no infirmity and/or illegality in the impugned order and hence, the same is upheld.
Order pronounced in the open court on 27.11.2025