CIT v. La Medica

250 ITR 575High Court2001#665 most cited

What is CIT v. La Medica authority for?

When purchases are shown to be non-genuine, the entire amount is to be disallowed as unexplained expenditure under section 69C, irrespective of whether the goods were procured from alternative sources.

150

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2008 to 2026.

Also referred to as

CIT v. La Medica · 250 ITR 575 · section 69C · bogus purchases · 100% disallowance · unexplained expenditure · non-genuine purchases · rejection of books of account · entire disallowance · section 145(3)

Also reported as

117 Taxmann 628

Sections most often in play

Section 69CSection 147Section 143(3)Section 133(6)Section 145(3)Section 148Section 142(1)Section 144B

Issues it is cited on

peak credit theorysection 69crejection of books of accountaccommodation entryborrowed satisfactionsection 145satisfaction notesection 145(3)unexplained expendituretangible materialsection 133(6)reason to believe

Judgments citing CIT v. La Medica

ITO 6(3)(2), Mumbai vs. Jaydeep Profiles P.Ltd, Mumbai

ITA 3236/MUM/2016[2009-10]Status: DisposedITAT Mumbai25 Sept 2018AY 2009-10

Bench: Shri Joginder Singh & Shri G. Manjunathaassessment Year: 2009-10 Income Tax Officer 6(3)(2), Jaydeep Profiles P. Ltd., R No.503, 5Th Floor, Aayakar 142/7 Lakdi Bunder Road, बनाम/ Bhavan, M.K.Road, Darukhana, Reay Road, Vs. Mumbai 400 020 Mumbai 400 086 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. Aaacj8998B Assessment Year: 2009-10 Jaydeep Profiles P. Ltd., Income Tax Officer 6(3)(2), 142/7 Lakdi Bunder Road, R No.503, 5Th Floor, Aayakar बनाम/ Darukhana, Reay Road, Bhavan, M.K.Road, Vs. Mumbai 400 086 Mumbai 400 020 ("नधा"रती /Assessee) (राज"व /Revenue) P.A. No. Aaacj8998B 2 & 2698/Mum/2016

Section 133(6)Section 139Section 142Section 143Section 147Section 148

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ, ‘ए’,मुंबई। IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “A”, MUMBAI "ी जो"ग"दर "संह, "या"यक सद"य एवं "ी जी. मंजूनाथ, लेखा सद"य, के सम" Before Shri JOGINDER SINGH, Judicial Member, and Shri G. MANJUNATHA, Accountant Member Assessment Year: 2009-10 Income Tax Officer 6(3)(2), Jaydeep Profiles P. Ltd., R No.503, 5th floor, Aayakar 142/7 Lakdi Bunder Road, बनाम/ Bhavan, M.K.Road, Darukhana, Reay Road, Vs. Mumbai 400 020 Mumbai 400 086 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. AAACJ8998B Assessment Year: 2009-10 Jaydeep Profiles P. Ltd., Income Tax Officer 6(3)(2), 142/…

Jaydeep Profiles Pvt. Ltd., Mumbai vs. ITO WD 6 (3)(2), Mumbai

ITA 2698/MUM/2016[2009-10]Status: DisposedITAT Mumbai25 Sept 2018AY 2009-10

Bench: Shri Joginder Singh & Shri G. Manjunathaassessment Year: 2009-10 Income Tax Officer 6(3)(2), Jaydeep Profiles P. Ltd., R No.503, 5Th Floor, Aayakar 142/7 Lakdi Bunder Road, बनाम/ Bhavan, M.K.Road, Darukhana, Reay Road, Vs. Mumbai 400 020 Mumbai 400 086 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. Aaacj8998B Assessment Year: 2009-10 Jaydeep Profiles P. Ltd., Income Tax Officer 6(3)(2), 142/7 Lakdi Bunder Road, R No.503, 5Th Floor, Aayakar बनाम/ Darukhana, Reay Road, Bhavan, M.K.Road, Vs. Mumbai 400 086 Mumbai 400 020 ("नधा"रती /Assessee) (राज"व /Revenue) P.A. No. Aaacj8998B 2 & 2698/Mum/2016

Section 133(6)Section 139Section 142Section 143Section 147Section 148

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ, ‘ए’,मुंबई। IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “A”, MUMBAI "ी जो"ग"दर "संह, "या"यक सद"य एवं "ी जी. मंजूनाथ, लेखा सद"य, के सम" Before Shri JOGINDER SINGH, Judicial Member, and Shri G. MANJUNATHA, Accountant Member Assessment Year: 2009-10 Income Tax Officer 6(3)(2), Jaydeep Profiles P. Ltd., R No.503, 5th floor, Aayakar 142/7 Lakdi Bunder Road, बनाम/ Bhavan, M.K.Road, Darukhana, Reay Road, Vs. Mumbai 400 020 Mumbai 400 086 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. AAACJ8998B Assessment Year: 2009-10 Jaydeep Profiles P. Ltd., Income Tax Officer 6(3)(2), 142/…

Nkg Infrastructure Ltd., New Delhi vs. Pr.CIT, C- 3, New Delhi

In the result all the three appeals of the assessee are allowed

ITA 3827/DEL/2018[2010-11]Status: DisposedITAT Delhi05 Sept 2018AY 2010-11

Bench: Shri G.D. Agrawal, Hon’Ble & Shri K.Narasimha Chary

Section 132(1)Section 143(3)Section 153Section 263Section 263(1)

…o the facts of the case inasmuch as in all such cases the record speaks that there was a finding as to the Learned Assessing Officer failing to carry out adequate enquiry. 33. Ld. DR further placed reliance on the decision reported in CIT vs. La Medica (2001) 250 ITR 575 for the principle that once it was accepted that supplies were not made by the said supplier to whom payments are alleged to have been made, question of purchases having been made from some other source could not weighed with the Tribunal as a factor in assessee’s favour. Further, reliance is placed on the decision reported in Sanjay Oilcake Indu…

Nkg Infrastructure Ltd., New Delhi vs. Pr.CIT, C- 3, New Delhi

In the result all the three appeals of the assessee are allowed

ITA 3826/DEL/2018[2009-10]Status: DisposedITAT Delhi05 Sept 2018AY 2009-10

Bench: Shri G.D. Agrawal, Hon’Ble & Shri K.Narasimha Chary

Section 132(1)Section 143(3)Section 153Section 263Section 263(1)

…o the facts of the case inasmuch as in all such cases the record speaks that there was a finding as to the Learned Assessing Officer failing to carry out adequate enquiry. 33. Ld. DR further placed reliance on the decision reported in CIT vs. La Medica (2001) 250 ITR 575 for the principle that once it was accepted that supplies were not made by the said supplier to whom payments are alleged to have been made, question of purchases having been made from some other source could not weighed with the Tribunal as a factor in assessee’s favour. Further, reliance is placed on the decision reported in Sanjay Oilcake Indu…

Nkg Infrastructure Ltd., New Delhi vs. Pr.CIT, C- 3, New Delhi

In the result all the three appeals of the assessee are allowed

ITA 3825/DEL/2018[2008-09]Status: DisposedITAT Delhi05 Sept 2018AY 2008-09

Bench: Shri G.D. Agrawal, Hon’Ble & Shri K.Narasimha Chary

Section 132(1)Section 143(3)Section 153Section 263Section 263(1)

…o the facts of the case inasmuch as in all such cases the record speaks that there was a finding as to the Learned Assessing Officer failing to carry out adequate enquiry. 33. Ld. DR further placed reliance on the decision reported in CIT vs. La Medica (2001) 250 ITR 575 for the principle that once it was accepted that supplies were not made by the said supplier to whom payments are alleged to have been made, question of purchases having been made from some other source could not weighed with the Tribunal as a factor in assessee’s favour. Further, reliance is placed on the decision reported in Sanjay Oilcake Indu…

M/S. Sports Infratech Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 2045/DEL/2015[2011-12]Status: DisposedITAT Delhi13 Jun 2018AY 2011-12

Bench: Sh. N. K. Saini, Am & Sh. K. N. Chary, Jm Ita No. 2045/Del/2015 : Asstt. Year : 2011-12 M/S Sports Infratech Pvt. Ltd., Vs Dy. Commissioner Of Income Tax, 204, Okhla Industrial Estate, Central Circle-5, Phase-Iii, New Delhi-110020 New Delhi (Appellant) (Respondent) Pan No. Aabcj7255J Assessee By : Sh. Sanjay Jain, Ca & Sh. Rakesh Joshi, Ca Revenue By : Sh. S. S. Rana, Cit Dr Date Of Hearing : 05.04.2018 Date Of Pronouncement : 13.06.2018 Order Per N. K. Saini, Am: This Is An Appeal By The Assessee Against The Order Dated 30.01.2015 Of Ld. Cit(A)-24, New Delhi.

For Appellant: Sh. Sanjay Jain, CA &For Respondent: Sh. S. S. Rana, CIT DR
Section 133(6)Section 133ASection 142(1)Section 143(1)Section 143(2)Section 37

…aining the impugned addition. The reliance was placed on the following case laws: " N K Proteins Ltd. Vs CIT (2017-TIOL-23-SC-IT) " CIT Vs Arun Malhotra (2014) 363 ITR 195 " Vijay Proteins Ltd. Vs ACIT (2015) 58 Taxmann.com 44 (Guj.) " CIT Vs La Medica (2001) 250 ITR 575 (Del.) " N K Industries Ltd. Vs DCIT (2016-TIOL-3165-HC- AHM-IT) " Shivnandan Buildcon (P.) Ltd. Vs CIT (2015) 60 Taxmann.com 347 (Del.) 13. We have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case, it is noticed that the AO made the additions considering the purch…

Sanjay Lalchand Batthija, Mumbai vs. Income Tax Officer Ward-2(4), Kalyan

In the result, the appeal Assessee is partly allowed

ITA 7142/MUM/2017[2010-11]Status: DisposedITAT Mumbai14 May 2018AY 2010-11

Bench: Sri Mahavir Singh

For Appellant: Sailesh Parmar, ARFor Respondent: Virender Singh, DR
Section 144Section 145

…ade from unverifiable /Hawala dealer. Accordingly, the book result of the appellant is rejected u/s.145 (3) of the Act. The disallowance @ 100% of unverifiable purchases from Hawala dealers had been upheld in the following cases: (1) CIT vs. La Medica (2001) 250 ITR 575 (Del) (2) Sri. Ganesh Rice Mills vs. CIT (2007) 294 ITR 316 (All) (3) Khandelwal Trading Co. vs. ACT (1996) 55 TTJ (JP) 261 (4) Swetambar Steels Ltd. vs. ITO 707/1075/1262/1263/JD(2002) ITAT (Ahd). Also upheld up to Supreme Court. (5) Placed reliance in the case of Ruchi Developers, ITAT 'B' Bench Ahmedabad in - A.Y.2007-08 & -A.Y.2007-08. D…

ITO 19(1)(2), Mumbai vs. Babulal U Munot, Mumbai

In the result, the appeal filed by the revenue is hereby ordered to be dismissed

ITA 4506/MUM/2015[2010-11]Status: DisposedITAT Mumbai11 May 2018AY 2010-11

Bench: Shri Rajendra, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.4506/Mum/2015 (निर्धारण वर्ा / Assessment Year: 2010-11) The Ito-19(1)(2), Mumbai, बिधम/ Shri Babulal U Munot 2Nd Floor, Matru Mandir, Prop. M/S. Steel Samrat Vs. (India) Flat No. 1901-A, 19Th Tardeo Road, Mumbai- 400007 Floor, Shreepati Tower, A Wing, Tatya Gharpure Path, Girgaon Mumbai-04 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aftpm5429H (अपीलाथी /Appellant) (प्रत्यथी / Respondent) .. Revenue By: Shri T. A. Khan (Dr) Assessee By: None सुनवाई की तारीख / Date Of Hearing: 26.03.2018 घोषणा की तारीख /Date Of Pronouncement: 11.05.2018 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Present Appeal Against The Order Dated 15.05.2015 Passed By The Commissioner Of Income Tax (Appeals) -30, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2010- 11. 2. The Revenue Has Raised The Following Grounds: - “(1) Whether, On The Facts & In The Circumstances Of The Case & In Law, The Ld. Cit(A) Has Erred In Restricting The Addition To The Extent Of 7.5% Of Non-Genuine Purchase Claimed By The Assessee A.Y.2010-11

For Appellant: NoneFor Respondent: Shri T. A. Khan (DR)
Section 133(6)Section 143(1)Section 143(2)Section 69C

…pany. it is a settled law that the tax has to be viewed on the real person. Under these circumstances and keeping in view the decision of the Hon’ble Delhi High Court as relied on by the learned Department representative in the case of CIT v. La Medica [2001] 250 ITR 575, we are of the view that the assessee-company has debited bogus purchases in its books of account which the assessee-company could not substantiate and, accordingly, the Commissioner of Income-tax (Appeals) was not justified in deleting the addition of Rs.4,37,048, which is directed to be 12 A.Y.2010-11 reversed and added in the income of the as…

DCIT Cir 2, Kalyan vs. Jayprakash N Lakhani, Ulhasnagar

In the result, the appeal is dismissed

ITA 924/MUM/2017[2010-11]Status: DisposedITAT Mumbai18 Apr 2018AY 2010-11

Bench: Shri Joginder Singh () & Shri N.K. Pradhan () Assessment Year: 2010-11 The Dy. Commissioner Shri Jayprakash N Of Income Tax, Circle-2, Vs. Lakhani, F-212, Udyog Kalyan, 2Nd Floor, Mohan Vihar, Near Vithal Wadi, Plaza, Khadakpada, Ulhasnagar-421003 Wayale Nagar, Kalyan (W),- 421301 Pan No. Aakpl5145M Appellant Respondent Revenue By : Ms. Arju Garodia, Dr Assessee By : None Date Of Hearing : 21/03/2018 Date Of Pronouncement : 18/04/2018

For Appellant: NoneFor Respondent: Ms. Arju Garodia, DR
Section 131Section 133(6)Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “J” MUMBAI BEFORE SHRI JOGINDER SINGH (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) Assessment Year: 2010-11 The Dy. Commissioner Shri Jayprakash N of Income Tax, Circle-2, Vs. Lakhani, F-212, Udyog Kalyan, 2nd floor, Mohan Vihar, Near Vithal Wadi, Plaza, Khadakpada, Ulhasnagar-421003 Wayale Nagar, Kalyan (W),- 421301 PAN No. AAKPL5145M Appellant Respondent Revenue by : Ms. Arju Garodia, DR Assessee by : None Date of Hearing : 21/03/2018 Date of pronouncement : 18/04/2018 ORDER PER N.K. PRADHAN, AM This is an appeal filed by the Revenue. The re…

Inter Carat Jewellery Private Limited, Mumbai vs. Income Tax Officer 8(2)(1), Mumbai

In the result, the appeal filed by the assessee is partly allowed and Stay

ITA 307/MUM/2018[2006-07]Status: DisposedITAT Mumbai07 Mar 2018AY 2006-07

Bench: Shri B.R. Baskaran (Am)& Shri Pawan Singh (Jm)

Section 148Section 69C

…l (1987)(164 ITR 102)(Guj) (b) CIT Vs. Modi Stone Ltd (2011)(203 Taman 123)(Delhi) (c) Champalal Choudhary (2012)(54 SOT 398)(JP) 3 M/s. Inter Carat Jewellery Pvt. Ltd. (d) J.R Solvent Industries (P) Ltd Vs. CIT (209 Taxman 18)(P & H) (e) CIT Vs. La Medica (250 ITR 575)(Delhi) The AO further held that even if the assessee was able to reconcile the quantity details, yet the assessee could not prove the purchases made from M/s Zalak Impex. Accordingly he held that it has to be inferred that purchases were made by the assessee from undisclosed parties out of unexplained sources of income. Since the sources of cash…

Shankar Jhalani, Jaipur vs. ITO, Jaipur

In the result, appeal of the assessee is dismissed

ITA 1053/JPR/2016[2011-12]Status: DisposedITAT Jaipur19 Feb 2018AY 2011-12

Bench: The Itat By Taking Following

For Appellant: Shri P.C. Parwal (CA)For Respondent: Shri R.A. Verma (Addl.CIT)
Section 144Section 40

…8 CTR 420 (Raj) -Indian woollen Carpet Factory- held that onus is on assessee to prove the genuineness of the purchases. 6. 186 CTR 718 (MP) - VISP Pvt. Ltd.- Same view was taken as in case of Indian woolen 7. 227 ITR 391 (Raj) - Golcha Properties P Ltd 8. 250 ITR 575 (Del) - Law Medica 9. 240 ITR 322 (KER) - Beena Metals 10. 229 ITR 181 (MP) - System India Casting 11. 50 DTR 502 (ITAT, Jaipur) - Deepak Dalela 12. 49 ITR 112 (SC) - Shri Lekha Banerjee 13. 288 ITR 10 (SC) - Kachawala Gems In view of the above, where the assessee filled the appeal /CO may kindly be dismissed and where revenue filled appeal…

ACIT - 17(3), Mumbai vs. Vijay N. Mehta, Mumbai

ITA 2194/MUM/2016[2011-12]Status: DisposedITAT Mumbai16 Feb 2018AY 2011-12

Bench: Sri Mahavir Singh, Jm & Sri Ramit Kochar, Am The Asst. Commissioner Of Shri Vijay N Mehta 13, 1St Floor, 338, Narshi Income Tax-17(3), Vs. Aayakar Bhavan, R.No. 137, Natha Street, Masjid Bunder M.K Rd., Mumbai-400 020 (W), Mumbai-400 009 Appellant .. Respondent Pan No. Aadpm8512G Shri Vijay N Mehta The Asst. Commissioner Of 13, 1St Floor, 338, Narshi Income Tax-17(3), Vs. Natha Street, Masjid Bunder Aayakar Bhavan, R.No. 137, (W), Mumbai-400 009 M.K Rd., Mumbai-400 020 Appellant .. Respondent

For Appellant: Neha Paranjape, ARFor Respondent: Saurabhkumar Rai, DR
Section 143(3)Section 69C

…as regards the sales and closing stock and the maintenance of stock register cannot lead to conclusions otherwise, as accountancy is essentially an art and not a science; as held by the Hon'ble Jaipur ITAT in the case of Khandelwal Trading Co., as reported in 250 ITR 575.” And assessee has raised the following ground: - “1. Under the facts and in law, the Learned Commissioner of Income Tax Appeal erred in confirming addition of Rs 923,584/- being 3.41% of the alleged bogus purchases. 1.01 The Learned Commissioner of Income Tax Appeal erred in stating that appellant had made cash purchases from the other partie…

Vijay N Mehta, Mumbai vs. Asst CIT RG 17(3), Mumbai

ITA 1394/MUM/2016[2011-12]Status: DisposedITAT Mumbai16 Feb 2018AY 2011-12

Bench: Sri Mahavir Singh, Jm & Sri Ramit Kochar, Am The Asst. Commissioner Of Shri Vijay N Mehta 13, 1St Floor, 338, Narshi Income Tax-17(3), Vs. Aayakar Bhavan, R.No. 137, Natha Street, Masjid Bunder M.K Rd., Mumbai-400 020 (W), Mumbai-400 009 Appellant .. Respondent Pan No. Aadpm8512G Shri Vijay N Mehta The Asst. Commissioner Of 13, 1St Floor, 338, Narshi Income Tax-17(3), Vs. Natha Street, Masjid Bunder Aayakar Bhavan, R.No. 137, (W), Mumbai-400 009 M.K Rd., Mumbai-400 020 Appellant .. Respondent

For Appellant: Neha Paranjape, ARFor Respondent: Saurabhkumar Rai, DR
Section 143(3)Section 69C

…as regards the sales and closing stock and the maintenance of stock register cannot lead to conclusions otherwise, as accountancy is essentially an art and not a science; as held by the Hon'ble Jaipur ITAT in the case of Khandelwal Trading Co., as reported in 250 ITR 575.” And assessee has raised the following ground: - “1. Under the facts and in law, the Learned Commissioner of Income Tax Appeal erred in confirming addition of Rs 923,584/- being 3.41% of the alleged bogus purchases. 1.01 The Learned Commissioner of Income Tax Appeal erred in stating that appellant had made cash purchases from the other partie…

Kaviraj Construction, Mumbai vs. ACIT 16(3), Mumbai

In the result, appeals filed by the revenue as well as assessee are hereby ordered to be dismissed

ITA 1327/MUM/2015[2010-11]Status: DisposedITAT Mumbai09 Feb 2018AY 2010-11

Bench: Shri G.S. Pannu, Am & Shri Amarjit Singh, Jm

For Appellant: Shri Aditya Ajgaonkar (AR)For Respondent: Shri Saurabh Deshpande (DR)
Section 133(6)Section 143(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL“A” BENCH, MUMBAI BEFORE SHRI G.S. PANNU, AM AND SHRI AMARJIT SINGH, JM I.T.A. Nos. 1326/M/2015 & 1327/M/2015, Assessment Years: 2009-10 & 2010-11 Kaviraj Construction Vs. ACIT 16(3) 10Atul Niwas, 1st Floor, Mumbai R.No. 20/21 7thFloor, Khetwadi Lane, Mumbai. Pin: 400004 स्थायीलेखासं./जीआइआरसं./PAN/GIR No. : AAAFK3860C (Appellant) .. (Respondent) I.T.A. Nos.1190/M/2015 &1191/M/2015, Assessment Years: 2009-10 & 2010-11 ACIT 16(3) Vs. Kaviraj Construction Mumbai 10Atul Niwas, 1st Floor, R.No. 20/21 7thFloor, Khetwadi Lane, Mumbai. Pin: 400004 स्थायीलेखासं./जीआइआरसं./PAN/GIR No.…

DCIT Cir.7(3)(1), Mumbai vs. Pjl Clothing India Ltd., Mumbai

The appeal of the Revenue is allowed for statistical purposes

ITA 2596/MUM/2016[2010-11]Status: DisposedITAT Mumbai08 Feb 2018AY 2010-11

Bench: Shri Joginder Singh & Shri G. Manjunathaassessment Year: 2010 - 2011 Dcit Circle 7(3)(1) Pjl Clothing India Ltd., Mumbai बनाम/ Unit No.19, Shree Madhu Estate, Pandurang Budhakar Vs. Marg, Worli, Mumbai 400 018 (याजस्व /Revenue) (यनधाारयती /Assessee) P.A. No. Aaacp2782R

Section 133(6)Section 143(1)Section 143(2)

…ccount of this concern was by way of transfer entries from the appellant and moneys were immediately withdrawn from the said bank account. The CIT(A) also relied upon the judgment of the Hon'ble Delhi High Court in the case reported in CIT v. La Medica (2001) 250 ITR 575 (Del). The CIT(A) also observed that since no affidavit has been submitted in respect of Sejal Enterprises, the submissions made relating to affidavit of other parties are not relevant. It is also found from the orders of the AO and the CIT(A) that the assessee had, inter alia, submitted the affidavit of Shri Kaushik R. Surti, proprietor, M/s Som…

Asst CIT 25(2), Mumbai vs. Mangalsingh M Rathod, Mumbai

In the result, the appeal of the revenue is partly allowed

ITA 5699/MUM/2014[2010-11]Status: DisposedITAT Mumbai05 Feb 2018AY 2010-11

Bench: Shri B.R. Baskaran (Am)& Shri Pawan Singh (Jm)

Section 133(6)

…cordingly, the Assessing Officer treated the above said purchases as bogus and disallowed a sum of ` 280.29 lakhs referred above. The Assessing Officer also placed reliance on the decision rendered by Hon'ble Delhi High Court in the case of CIT Vs. La Medica (250 ITR 575). 3. The assessee preferred appeal before the learned CIT(A), who deleted the addition by observing that the assessee has furnished various evidences to prove the genuineness of purchases. The revenue is aggrieved by the decision rendered by Ld CIT(A) on this issue. 4. The Learned Departmental Representative submitted that the assessee has fail…

Virendra Kumar Gupta, Delhi vs. ACIT, New Delhi

In the result ground No. 4 to 7 are partly allowed

ITA 2721/DEL/2016[2006-07]Status: DisposedITAT Delhi13 Dec 2017AY 2006-07

Bench: Shri H.S.Sidhu & Shri Prashant Maharishivirendra Kumar Gupta, Acit, Vs. Prop Sanjay Metal Udyog, Circle-39(1), 3858, Gali Barna, Sadar Bazar, Delhi New Delhi Pan: Aaapg4216E (Appellant) (Respondent)

For Appellant: Shri Aashish Chadha, CAFor Respondent: Shri SS Rana, CIT DR
Section 148

…various judicial precedents cited before us also suggest that addition should be restricted to the extent of 25% of the purchases. Further, the decision relied upon by the ld Departmental Representative of Hon'ble Delhi High Court in case of CIT Vs. La Medica 250 ITR 575 do not apply to the facts of the case as in that particulars case the goods were pledged with the bank and the person from whom the purchases were made and who was operating the bank account was the employee of the group concern of the assessee. However, in the present case there is no such finding similar to that judgment. Further, assessee has…

V & V Pharma Industries, Thane vs. ACIT Cir. 3, Thane

In the result , appeal of the assessee in ITA no

ITA 6056/MUM/2016[2010-11]Status: DisposedITAT Mumbai28 Nov 2017AY 2010-11

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No. 6056 & 6057/Mum/2016 (नििाारण वर्ा / Assessment Year : 2010-11 & 2011-12)

For Appellant: Shri. Deepak RajeFor Respondent: Ms. Pooja Swaroop
Section 139(1)Section 143(3)Section 145(3)Section 69C

…bogus purchases, have been upheld, depends upon the fact of each case. Some of them are listed, here as under: 9 I.T.A. No. 6056 & 6057/Mum/2016 100% disallowance of bogus / unverifiable purchases was upheld, in following cases: (i) CIT Vs La Medica (2001) 250 ITR 575 (Del) (ii) Sri Ganesh Rice Mills Vs CIT (2007) 294 ITR 316 (All) (iii) Khandelwal Trading Co. Vs ACIT (1996) 55 TT] (JP) 261 (iv) Swetambar Steels Ltd. vs. ITa 707 / 1075 / 1262/ 1263 / JD (2002) I.TAT (Ahd) In the case of Swetambar Steels Ltd., The Hon 'ble ITAT has confirmed the disallowance of the bogus purchase in entirety stating that the…

Shri Kirtikumar Vasantbhai Thakkar, Patan vs. The Income Tax Officer, Ward-1, Patan

In the result, both the grounds of the appeal of the assessee are dismissed

ITA 3042/AHD/2014[2007-08]Status: DisposedITAT Ahmedabad27 Nov 2017AY 2007-08
For Appellant: Shri M. S. Chhajad, A.RFor Respondent: Shri Mudit Nagpal, Sr. D.R
Section 131(1)Section 147Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Shri Rajpal Yadav, Judicial Member And Shri Amarjit Singh, Accountant Member Assessment Year 2007-08 Shi Kiritkumar The ITO, Vasantbhai Thakkar, Wd-1, Prop. Of M/s. Divya Vs Patan Traders (Respondent) PAN: ADVPT8412B (Appellant) Revenue by: Shri Mudit Nagpal, Sr. D.R. Assessee by: Shri M. S. Chhajad, A.R. Date of hearing : 22-11-2017 Date of pronouncement : 27-11-2017 आदेश/ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- This assessee’s appeal for A.Y. 2007-08, arises from order of the CIT(A), Gandhinagar dated 14-07-2014, in proceedings un…

DCIT CC 6(4), Mumbai vs. J Kumar Infrapojects Ltd, Mumbai

In the result, all the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 4231/MUM/2016[2008-09]Status: DisposedITAT Mumbai02 Nov 2017AY 2008-09

Bench: S/Shri B.R. Baskaran (Am) & Amarjit Singh (Jm)

Section 133ASection 143(3)

…ain suppliers have denied the transactions of sales. Hence the AO was justified in disallowing entire value of purchases. She submitted that the AO has taken support of the decisions rendered by Hon’ble Delhi High Court in the case of CIT Vs. La Medica (2001)(250 ITR 575) and the Hon’ble Punjab & Haryana High Court in the case of J.R. Solvent Industries (P) Ltd (2012)(251 CTR 160). 5. The Ld CIT-DR further submitted that the Hon’ble Supreme Court has confirmed addition of entire amount of bogus purchases in the case of N.K. Proteins (2017-TIOL-23-SC-IT dated January 16, 2017) by dismissing the SLP filed by the a…