M/S. MALOO CONSTRUCTIONS(INDIA)PRIVATE LIMITED,BENGALURU vs. DCIT, CIRCLE-4(1)(1), BENGALURU

ITA 2385/BANG/2024Status: DisposedITAT Bangalore26 August 2025AY 2018-1910 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the AO relied solely on third-party information without independent inquiry and failed to demonstrate why only a specific portion of the purchases was bogus. The GST authority's observation only pertained to reversal of input tax credit due to delayed payment, not the genuineness of purchases.

What were the facts?

The assessee claimed purchases from M/s. Gandhi Iron & Steel Co. The Assessing Officer (AO) disallowed a portion of these purchases treating them as bogus based on information from the Commercial Tax Department. The CIT(A) upheld the disallowance.

What were the issues?

Whether the disallowance of purchases based solely on third-party information without independent inquiry by the AO is justified. Whether the CIT(A) erred in upholding the disallowance without considering evidence of purchase genuineness and GST authority's observations.

Which sections of the Income-tax Act were involved?

Section 143(3)

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Income Tax Appellate Tribunal, A BENCH: BANGALORE

Before: SHRI LAXMI PRASAD SAHU & SHRI KESHAV DUBEY

Hearing: 21.08.2025Pronounced: 26.08.2025

PER KESHAV DUBEY, JUDICIAL MEMBER:

This appeal at the instance of the assessee is directed against the order of ld. CIT(A)/NFAC dated 4.10.2024 vide DIN & Order No. ITBA/NFAC/S/250/2024-25/1069361908(1) passed u/s 250 of the Income Tax Act, 1961 (in short “The Act”) for the assessment year 2018-19. 2. The assessee has raised the following grounds of appeal:

1.

The orders of the authorities below in so far as they are against the appellant are opposed to law, equity, weight of evidence, probabilities, facts and circumstances of the case.

2.

The learned CIT[A] is not justifi

The order continues below.

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