PR. COMMISSIONER OF INCOME TAX vs. M/S. SSS LOHA MARKETING PRIVATE LIMITED

2023 [Physical Hearing/Hybrid Hearing (as per request)]

Interestingly, the provisions of Section 68 of the Income Tax Act, 1961 [in short, “the Act”] were not invoked and the addition was not made under the head „income from business and profession‟.

In an appeal preferred by the respondent/assessee, the addition was confined to the purported commission income that it had earned. A rate of 0.25 % was applied to the aforementioned bogus entries concerning sales. ITA 117/2023

The CIT(A) broadly concluded that since both sales and purchase were fake, they squared off each other. This view has been sustained by the Tribunal.

The matter requires further examination.

Accordingly, issue notice.

1 Mr Anshul Mittal accepts notice on behalf of the respondent/assessee.

List the appeal on 23.08.2023. 9. Counsel for the parties will file their written submissions, not exceeding three pages each, at least five days before the next date of hearing.

Mr Zoheb Hossain will furnish copies of the case papers to Mr Mittal within next three weeks via e-mail.