K L TAMBI AND CO,JAIPUR vs. DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-2,, JAIPUR
Facts
The Assessing Officer disallowed 25% of bogus purchases amounting to Rs. 15,13,844/- for AY 2005-06. The assessee's appeal was dismissed by the CIT(A), who upheld the disallowance. This is the second round of litigation, with previous proceedings also involving additions for bogus purchases.
Held
The Tribunal upheld the rejection of the assessee's books of accounts under Section 145(3) due to unverified purchases. The Tribunal found that the assessee failed to discharge the onus of proving the genuineness of the purchases. Consequently, the Tribunal applied a Gross Profit (GP) rate of 20% on the bogus purchases instead of the 25% applied by the AO and upheld by the CIT(A).
Key Issues
Whether the disallowance of 25% of purchases as bogus is justified, and what GP rate should be applied in light of rejected books of accounts.
Sections Cited
271(1)(c), 274, 143(3), 145(3), 40A(3), 145(2)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES,”A” JAIPUR
Before: SHRI RATHOD KAMLESH JAYANTBHAI, AM & SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No. 104/JP/2024
Result
As a result, the appeal is partly allowed, and addition of 20% of bogus or purchases from unverifiable persons or entities is upheld as regards AY 2005-06.
Assessing Officer to do the needful to give effect to this decision accordingly.
It may be mentioned here that while making calculations, the Assessing Officer shall also take into consideration the amount of tax already deposited by the assessee, so as to avoid double taxation on the same cause of action.
Order pronounced in the open court on 01/08/2024.
Sd/- Sd/- ¼jkBkSM+ deys'k t;UrHkkbZ ½ ¼ujsUnz dqekj½ (RATHOD KAMLESH JAYANTBHAI) (NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 01/08/2024
18 ITA No. 104/JP/2024 M/s K L Tambi & Co. vs DCIT, Jaipur *Ganesh Kumar, Sr. PS आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. The Appellant- M/s K. L Tambi & Co., Jaipur 2. izR;FkhZ@ The Respondent- DCIT, Central Circle-02, Jaipur 3. vk;dj vk;qDr@ The ld CIT vk;dj vk;qDr¼vihy½@The ld CIT(A) 4. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 5. 6. xkMZ QkbZy@ Guard File (ITA No. 104/JP/2024) vkns'kkuqlkj@ By order,
सहायक पंजीकार@Aेेज. त्महपेजतंत
