DEPUTY COMMISSIONER OF INCOME TAX, DELHI vs. M/S VESTIGE MARKETING PRIVATE LIMITED, DELHI

ITA 7843/DEL/2025Status: DisposedITAT Delhi20 March 2026AY 2023-241 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that additions cannot be made merely on the basis of a retracted statement, especially when supported by extensive documentary evidence like invoices, bank statements, and TDS compliance. The Tribunal found the Revenue had not discharged its burden to prove the falsity of the purchases.

What were the facts?

The Assessing Officer disallowed purchases treating them as bogus based on statements recorded during a search, and also made an addition for unexplained money. The CIT(A) partly upheld the disallowance of purchases and deleted the unexplained money addition.

What were the issues?

Whether disallowance of purchases is sustainable solely on retracted statements without corroborative evidence, and whether unexplained money addition is justified without supporting material.

Which sections of the Income-tax Act were involved?

Section 37(1),Section 69A,Section 132(4),Section 133(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH F: NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA

For Appellant: Shri Amit Goel, Shri Pranav Yadav, Advocates
For Respondent: Ms. Monika Singh, CIT-DR
Hearing: 24.02.2026Pronounced: 20.03.2026

PER BENCH These assessee's and the Revenue's seven cross-appeals each i.e., ITA Nos.5515 to 5521/Del/2025 and ITA Nos.7838 to 7844/Del/2025 for assessment years 2018-19 to 2024-25, arise against the CIT(A)-24, New Delhi orders; all dated 1st September, 2025, in proceedings under Section 147 read with Section 143(3) of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act'), as the case may be, respectively.

2.

Heard both the parties. Case files perused.

3.

We advert to the “lead” assessment year 2018-1

The order continues below.

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