INCOME TAX OFFICER, FARIDABAD vs. HARBANS LAL, FARIDABAD

ITA 6402/DEL/2025Status: DisposedITAT Delhi25 November 20253 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found that while the purchases were from accommodation entry providers, the assessee had already claimed depreciation and his turnover was not doubted. Therefore, a lumpsum disallowance of 3% of the bogus purchases was deemed appropriate.

What were the facts?

The Revenue appealed against the CIT(A)'s decision to delete an addition of Rs. 45.21 lakhs made by the AO for bogus purchases. The assessee had sourced purchases from entities identified as accommodation entry providers.

What were the issues?

Whether the CIT(A) erred in deleting the addition for bogus purchases, and if so, what is the appropriate disallowance in light of the assessee's other claims and business turnover.

Which sections of the Income-tax Act were involved?

Section 147,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI

Before: SHRI SATBEER SINGH GODARA

Hearing: 25.11.2025Pronounced: 25.11.2025

This Revenue’s appeal for assessment year 2018-19, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1079789574(1), dated 20.08.2025 involving proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Case called twice. None appears at the assessee’s/respondent’s behest. He is accordingly proceeded ex- parte.

2.

Learned departmental representative vehemently argues during the course of hearing that the CIT(A)/NFAC has erred in law and on facts in reversing the Assessing Officer’s action adding the assessee’s bogus purchases sourced from various accommodation entry providers herein from Kolkata; totalling to

The order continues below.

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