NEERU AGGARWAL,LUDHIANA vs. INCOME TAX OFFICER, WARD 2(1), LUDHIANA, LUDHIANA

ITA 923/CHANDI/2026Status: DisposedITAT Chandigarh24 August 2026AY 2018-195 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the books of account were implicitly rejected due to the finding of bogus purchases. While upholding the rejection of books, the Tribunal reduced the addition sustained by the CIT(A) to meet the ends of justice.

What were the facts?

The Assessing Officer (AO) received information about the issuance of bogus purchase bills by M/s Riddhi Siddhi Polymers. The assessee claimed purchases from this entity, which were found to be fake upon inquiry. The AO made additions based on estimated profits from grey market purchases and commission.

What were the issues?

Whether the books of account were rejected and if additions could be made on estimated profits when purchases were found to be bogus. Whether the reopening of assessment was valid.

Which sections of the Income-tax Act were involved?

Section 145(3),Section 148A(b),Section 148A(d),Section 148,Section 151A

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
आयकर अपीलीय अिधकरण,च"ीगढ़ "ायपीठ “ए” , च"ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH HEARING THROUGH: HYBRID MODE "ी लिलत कुमार, "ाियक सद" एवं "ी िवजय वमा" , लेखा सद" BEFORE: SHRI. LALIET KUMAR, JM & SHRI. VIJAY VARMA, AM आयकर अपील सं./ ITA No. 923 /Chd/ 2026 िनधा"रण वष" / Assessment Year : 2018-19 Neeru Aggarwal बनाम The ITO Prop. M/s Buddha Venture, Ward-2(1) Ludhiana, Malerkotla Main Road, Ludhiana Opp. Vishwakarma Dharam Kanda, Alamgir, Ludhiana, Punjab-141116 "ायी लेखा सं./PAN NO: AFOPA5736Q अपीलाथ"/Appellant ""थ"/Respondent िनधा"रती की ओर से/Assessee by : Shri Ashok Gupta, Advocate (Virtual) राज" की ओर से/ Revenue by : Dr. Ranjit Kaur, Addl. CIT, Sr. DR सुनवाई की तारीख/Date of Hearing : 18/08/2026 उदघोषणा की तारीख/Date of Pronouncement : 24/08/2026

आदेश/Order

PER VIJAY VARMA, A.M: This is an appeal filed by the Assessee against the order of the Ld. CIT(A)/NFAC Delhi dt. 23/02/2026 for the Assessment Year 2018-19 in Appeal No. NFAC/2017-18/10303535. 2. In the present appeal Assessee has raised the following grounds:

1.

That the Ld. CIT Appeals has erred in law and on facts in estimating gross profit- at the rate of 4 percent on the entire sales,

The order continues below.

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