INCOME TAX OFFICER, WARD-5(1)(2), NOIDA, NOIDA vs. BHAVYA PIPE INDUSTRY, GREATER NOIDA

ITA 5107/DEL/2024Status: DisposedITAT Delhi14 October 2025AY 2022-23Bench: SHRI YOGESH KUMAR U.S. (Judicial Member), SHRI MANISH AGARWAL (Accountant Member)13 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision to estimate the profit element on bogus purchases at the GP rate of 1.39%, considering it a fair and reasonable estimation. The disallowance of carriage inward expenses related to these purchases was also confirmed.

What were the facts?

The Assessing Officer (AO) disallowed 25% of purchases made from 11 suppliers, deeming them bogus as the suppliers were unverified and their GST numbers were cancelled. The CIT(A) confirmed the purchases as unverifiable but restricted the addition to 1.39% of the bogus purchases, representing the Gross Profit (GP) rate.

What were the issues?

Whether the addition on account of bogus purchases should be a flat 25% or based on the profit element, and whether the CIT(A) erred in applying the GP rate of 1.39%.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144B,Section 69C,Section 136(6)

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Income Tax Appellate Tribunal, DELHI BENCH ‘A’: NEW DELHI

Before: SHRI YOGESH KUMAR U.S. & SHRI MANISH AGARWAL

For Appellant: Shri Ved Jain, Adv. and Ms. Uma Upadhyay, CA, Shri Aditya Garg, CA
For Respondent: Shri Ajay Kumar Arora, Sr. DR
Hearing: 16/07/2025Pronounced: 14/10/2025

PER MANISH AGARWAL, AM: This instant appeal is filed by the Revenue against the order of the Ld.

Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A), in short] dated 09.09.2024 in Appeal No. NFAC/2021-22/10338562 arising out of order passed u/s 143(3) r.w.s 144B of

The order continues below.

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