INCOME TAX OFFICER-20(1)(1), MUMBAI vs. IQBAL ISMAIL LOKHANDWALA , MUMBAI

PER OM PRAKASH KANT, AM

Iqbal Ismail Lokhandwala Iqbal Ismail Lokhandwala 2 ITA No. 963/M/2022

1. "Whether the facts and circumstances of the case and in "Whether the facts and circumstances of the case and in "Whether the facts and circumstances of the case and in law, the Ld.CIT(A) is right in deleting the addition at the law, the Ld.CIT(A) is right in deleting the addition at the law, the Ld.CIT(A) is right in deleting the addition at the rate 12.5% rate 12.5% suspicious purchases of Rs. 3,81,82,622/ suspicious purchases of Rs. 3,81,82,622/- by ignoring the fact that the action of the Assessing Officer ignoring the fact that the action of the Assessing Officer ignoring the fact that the action of the Assessing Officer was based on credible information received from the was based on credible information received from the was based on credible information received from the Maharashtra Sales Tax Department and that the assessee, Maharashtra Sales Tax Department and that the assessee, Maharashtra Sales Tax Department and that the assessee, during the course of assessment proceedings, during the course of assessment proceedings, failed to failed to prove the genuineness the purchase transactions."? prove the genuineness the purchase transactions."? prove the genuineness the purchase transactions."? 2. "Whether on the facts and in the circumstances of the "Whether on the facts and in the circumstances of the "Whether on the facts and in the circumstances of the case and in law, Ld.CIT(A)is right in deleting the addition case and in law, Ld.CIT(A)is right in deleting the addition case and in law, Ld.CIT(A)is right in deleting the addition bogus purchases without appreciating the fact that the bogus purchases without appreciating the fact that the bogus purchases without appreciating the fact that the assessee had failed to es assessee had failed to establish the genuineness of the tablish the genuineness of the alleged parties from whom purchases is claimed to have alleged parties from whom purchases is claimed to have alleged parties from whom purchases is claimed to have been made during the year"? been made during the year"? 3. "Whether on the facts and in the circumstances of the "Whether on the facts and in the circumstances of the "Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A)is right in deleting the case and in law, the Ld.CIT(A)is right in deleting the case and in law, the Ld.CIT(A)is right in deleting the addition on bogus purchases addition on bogus purchases without appreciating the without appreciating the fact that the assessee could not produce the alleged fact that the assessee could not produce the alleged fact that the assessee could not produce the alleged parties from whom purchases is claimed to have been parties from whom purchases is claimed to have been parties from whom purchases is claimed to have been made during the year?" made during the year?" 4. "Whether on the facts and in the circumstances of the "Whether on the facts and in the circumstances of the "Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A)is right in deleting the case and in law, the Ld.CIT(A)is right in deletin case and in law, the Ld.CIT(A)is right in deletin addition on bogus purchases without appreciating the addition on bogus purchases without appreciating the addition on bogus purchases without appreciating the fact that the Sales Tax Department as well as the DGIT fact that the Sales Tax Department as well as the DGIT fact that the Sales Tax Department as well as the DGIT (Inv.), Mumbai during their course of investigations found (Inv.), Mumbai during their course of investigations found (Inv.), Mumbai during their course of investigations found the the the alleged alleged alleged parties parties parties to to to be be be providing providing providing only only only accommodation/bogus purchase bills?” accommodation/bogus purchase bills?”

Iqbal Ismail Lokhandwala Iqbal Ismail Lokhandwala 3 ITA No. 963/M/2022

“10. Adverse judgme 10. Adverse judgments relating to the following issues should nts relating to the following issues should be contested on merits notwithstanding that the tax effect be contested on merits notwithstanding that the tax effect be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 entailed is less than the monetary limits specified in para 3 entailed is less than the monetary limits specified in para 3 above or there is no tax effect: above or there is no tax effect: (a) Where the Constitutional validity of the provisions o (a) Where the Constitutional validity of the provisions o (a) Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or Act or Rule is under challenge, or (b) Where Board's order, Notification, Instruction or Circular (b) Where Board's order, Notification, Instruction or Circular (b) Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or has been held to be illegal or ultra vires, or (c) Where Revenue Audit objection in the case has been (c) Where Revenue Audit objection in the case has been (c) Where Revenue Audit objection in the case has been accepted by the Department, or accepted by the Department, or Iqbal Ismail Lokhandwala Iqbal Ismail Lokhandwala 4 ITA No. 963/M/2022 (d) Where additio (d) Where addition relates to undisclosed foreign income/ n relates to undisclosed foreign income/ undisclosed foreign assets (including financial assets)/ undisclosed foreign assets (including financial assets)/ undisclosed foreign assets (including financial assets)/ undisclosed foreign bank account. undisclosed foreign bank account. e) Where addition is based on information received from e) Where addition is based on information received from e) Where addition is based on information received from external sources in the nature of law enforcement agencies external sources in the nature of law enforcement agencies external sources in the nature of law enforcement agencies such as CBI! ED! DRI! SFIO! Directorate General of GST CBI! ED! DRI! SFIO! Directorate General of GST CBI! ED! DRI! SFIO! Directorate General of GST Intelligence (DGGI). Intelligence (DGGI). (f) Cases where prosecution has been filed by the Departmen (f) Cases where prosecution has been filed by the Departmen (f) Cases where prosecution has been filed by the Department and is pending in the Court.” and is pending in the Court.”

Iqbal Ismail Lokhandwala Iqbal Ismail Lokhandwala 5 ITA No. 963/M/2022 Application for recalling the order in case it is found that the case Application for recalling the order in case it is found that the case Application for recalling the order in case it is found that the case falls under any of the exception to the CBDT Circular (supra). falls under any of the exception to the CBDT Circular (supra). falls under any of the exception to the CBDT Circular (supra).