SHRI ROHINTON CYRUS MALESRA,MUMBAI vs. THE ITO -19(3) (1), MUMBAI

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ITA 1598/MUM/2021Status: DisposedITAT Mumbai25 March 2022AY 2011-126 pages
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What did the Tribunal hold?

The Tribunal held that while the purchases were not genuine, the sales were not doubted. Therefore, a 100% addition was excessive. The Tribunal restricted the addition to the estimated profit element of 12.5% of the bogus purchases.

What were the facts?

The assessee's assessment was reopened based on information from the sales tax department regarding bogus purchases from two parties. The Assessing Officer made a 100% addition of these purchases, which was confirmed by the CIT(A).

What were the issues?

Whether the entire amount of bogus purchases should be added to income, or only the profit element. Whether the reopening of assessment was valid without independent belief.

Which sections of the Income-tax Act were involved?

Section 147,Section 143(3),Section 148,Section 145(3)

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Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI

For Appellant: Shri Anil Gala.AR
For Respondent: Shri Pavan Kumar Beerla.DR
Hearing: 21.03.2022Pronounced: 24.03.2022

आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1.

Shri Rohinton Cyrus Malesra, Mumbai - 6 -

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