KISHAN AGRO INDUSTRIES,MUZAFFARNAGAR vs. INCOME TAX OFFICER, MUZAFFARNAGAR, MUZAFFARNAGAR

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ITA 4835/DEL/2025Status: DisposedITAT Delhi29 September 2025AY 2018-19Bench: SHRI SATBEER SINGH GODARA (Judicial Member)2 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal decided to allow a lump sum addition of gross profit of Rs. 2,00,000/- and deleted the disallowance to the extent of Rs. 12,87,862/-, with a clear rider that this decision would not be treated as a precedent.

What were the facts?

The assessee's appeal arose from an order upholding the disallowance of purchases amounting to Rs. 14,87,862/- sourced from M/s Ekeshwar Inc. as bogus.

What were the issues?

Whether the entire purchase amount should be disallowed as bogus, or if a lesser addition based on gross profit is appropriate.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA

For Appellant: Shri Rishab Jain, Adv
For Respondent: Shri Manoj Kumar, Sr. DR
Hearing: 22.09.2025Pronounced: 22.09.2025

O R D E R

PER SATBEER SINGH GODARA, JM:

1.

This assessee’s appeal 2018-19 arises against CIT(A)/ NFAC, Delhi’s order dated 24.07.2025 (DIN & Order No. ITBA/NFAC/S/250/2025-26/1078863936(1), in proceedings u/s 143(3) r.w.s. 147 of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.

Heard both the parties. Case file perused. 2. It transpires during the course of hearing that both the learned lower authorities have disallowed the assessee’s purchases of Rs. 14,87,862/- sourced from M/s Ekeshwar Inc. as bogus ones; in assessment order dated 13.03.2023 and upheld in the lower appellate proceedings.

Kishan Agro Industries 3. It is in this factual background that both the parties herein reiterate their respective claims against and in support of the impugned disallowance. There is hardly any dispute between the parties that both the learned lower authorities have not disturbed the assessee’s corresponding business sales which give rise the necessary inference that it is an instance of sourcing the purchases from unregistered suppliers only.

5.

Be that as it may it is thus deemed appropriate in this factual backdrop that a lump sum addition of gross profit component of Rs. 2,00,000/- only would be just and proper with a rider that the same shall not be treated as a precedent. Necessary computation shall follow as per law. It is made clear before parting that the impugned disallowance/ addition of Rs. 14,87,862/- stands deleted to the extent of Rs. 12,87,862/- in the foregoing terms. Ordered accordingly.

This asessee’s appeal is partly allowed. Order pronounced in open court on 22.09.2025.

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