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 366,314 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

ACIT, New Delhi vs. Sh. Inderpal Singh Wadhawan, New Delhi

In the result ground No. 2 of the appeal of the assessee is allowed

ITA 952/DEL/2013[2007-08]Status: DisposedITAT Delhi08 Jul 2016AY 2007-08

Bench: I.C.Sudhir & Shri Prashant Maharishiinder Pal Singh Wadhawan, Jcit, E/1/7, Ii Nd Floor, East Patel Vs. Circle-33, Nagar, New Delhi New Delhi Pan: Aarps6904L (Appellant) (Respondent) Acit, Inder Pal Singh Wadhawan, Circle-33(1), Room No.1505, E/1/7, Ii Nd Floor, Vs. 15Th Floor, Dr. Shyama Prasad East Patel Nagar, New Delhi Mukherjee Civil Centre, New Delhi Pan: Aarps6904L (Appellant) (Respondent) Inder Pal Singh Wadhawan, Acit, E/1/7, Ii Nd Floor, East Patel Circle-33, Vs. Nagar, New Delhi New Delhi Pan: Aarps6904L (Appellant) (Respondent) Acit, Inder Pal Singh Wadhawan, Circle-33(1), Room No.1505, 15Th E/1/7, Ii Nd Floor, Vs. Floor, Dr. Shyama Prasad East Patel Nagar, New Delhi Mukherjee Civil Centre, Pan: Aarps6904L New Delhi (Appellant) (Respondent)

For Appellant: Sh. Ajay Wadhwa, AdvFor Respondent: Sh. Vijay Verma, CIT DR
Section 142Section 143(3)Section 68

…ve, the address verification of the parties, the bank accounts of the parties and the manner of payment to the parties through pay orders. Therefore, the ld Assessing Officer relying on the decision of the Hon’ble Delhi High Court in case of CIT Vs. La Medica 250 ITR 575 and on the decision of Gujarat High Court in case of Sanjay Oil Cake Industries Vs. CIT 316 ITR 274 disallowed 30% of the purchase shown by the assessee amounting to Rs. 36008930/- on account of inflated purchases. The ld CIT(A) deleted the addition vide para No. 15 of his order and therefore revenue is in appeal before us. Inderpal Singh Wadhawa…

ACIT, New Delhi vs. M/S Vardan Fashion, New Delhi

In the result ground No. 3 of the appeal of the assessee is dismissed

ITA 950/DEL/2013[2007-08]Status: DisposedITAT Delhi08 Jul 2016AY 2007-08

Bench: I.C.Sudhir & Shri Prashant Maharishivardan Fashions, Jcit, E-1/7, 2Nd Floor, East Patel Range-33, Vs. Nagar, New Delhi New Delhi Pan:Aacfv0423H (Appellant) (Respondent) Acit, Vardan Fashions, Circle-33(1) E-1/7, 2Nd Floor, East Patel Vs. New Delhi Nagar, New Delhi Pan:Aacfv0423H (Appellant) (Respondent)

For Appellant: Sh. Ajay Wadhwa, AdvFor Respondent: Sh. Vijay Verma, CIT DR
Section 142Section 40

…ee has inflated the purchases and therefore an addition of 30% of the value of purchase debited of Rs. 230034993/- amounting to Rs. 69010498/- was disallowed. Ld Assessing Officer relied on the decision of Hon‟ble Delhi High Court in case of CIT Vs. La Medica 250 ITR 575 and decision of Hon‟ble Gujarat High Court in case of Sanjay Oilcake Industries Vs. CIT 316 ITR 274 for supporting his stand. Vardaan Fashions ITA No 1143 & 950/Del/2013 A Y 2007-08 7. Further as the assessee has made payment of Rs. 54333000/- to the suppliers in respect of purchase of goods through bank pay order and not through a/c payee cros…

Mr. Inder Pal Singh Wadhawan, New Delhi vs. ACIT, New Delhi

In the result ground No. 2 of the appeal of the assessee is allowed

ITA 1589/DEL/2013[2008-09]Status: DisposedITAT Delhi08 Jul 2016AY 2008-09

Bench: I.C.Sudhir & Shri Prashant Maharishiinder Pal Singh Wadhawan, Jcit, E/1/7, Ii Nd Floor, East Patel Vs. Circle-33, Nagar, New Delhi New Delhi Pan: Aarps6904L (Appellant) (Respondent) Acit, Inder Pal Singh Wadhawan, Circle-33(1), Room No.1505, E/1/7, Ii Nd Floor, Vs. 15Th Floor, Dr. Shyama Prasad East Patel Nagar, New Delhi Mukherjee Civil Centre, New Delhi Pan: Aarps6904L (Appellant) (Respondent) Inder Pal Singh Wadhawan, Acit, E/1/7, Ii Nd Floor, East Patel Circle-33, Vs. Nagar, New Delhi New Delhi Pan: Aarps6904L (Appellant) (Respondent) Acit, Inder Pal Singh Wadhawan, Circle-33(1), Room No.1505, 15Th E/1/7, Ii Nd Floor, Vs. Floor, Dr. Shyama Prasad East Patel Nagar, New Delhi Mukherjee Civil Centre, Pan: Aarps6904L New Delhi (Appellant) (Respondent)

For Appellant: Sh. Ajay Wadhwa, AdvFor Respondent: Sh. Vijay Verma, CIT DR
Section 142Section 143(3)Section 68

…ve, the address verification of the parties, the bank accounts of the parties and the manner of payment to the parties through pay orders. Therefore, the ld Assessing Officer relying on the decision of the Hon’ble Delhi High Court in case of CIT Vs. La Medica 250 ITR 575 and on the decision of Gujarat High Court in case of Sanjay Oil Cake Industries Vs. CIT 316 ITR 274 disallowed 30% of the purchase shown by the assessee amounting to Rs. 36008930/- on account of inflated purchases. The ld CIT(A) deleted the addition vide para No. 15 of his order and therefore revenue is in appeal before us. Inderpal Singh Wadhawa…

Mr. Inder Pal Singh Wadhawan, New Delhi vs. JCIT, New Delhi

In the result ground No. 2 of the appeal of the assessee is allowed

ITA 1155/DEL/2013[2007-08]Status: DisposedITAT Delhi08 Jul 2016AY 2007-08

Bench: I.C.Sudhir & Shri Prashant Maharishiinder Pal Singh Wadhawan, Jcit, E/1/7, Ii Nd Floor, East Patel Vs. Circle-33, Nagar, New Delhi New Delhi Pan: Aarps6904L (Appellant) (Respondent) Acit, Inder Pal Singh Wadhawan, Circle-33(1), Room No.1505, E/1/7, Ii Nd Floor, Vs. 15Th Floor, Dr. Shyama Prasad East Patel Nagar, New Delhi Mukherjee Civil Centre, New Delhi Pan: Aarps6904L (Appellant) (Respondent) Inder Pal Singh Wadhawan, Acit, E/1/7, Ii Nd Floor, East Patel Circle-33, Vs. Nagar, New Delhi New Delhi Pan: Aarps6904L (Appellant) (Respondent) Acit, Inder Pal Singh Wadhawan, Circle-33(1), Room No.1505, 15Th E/1/7, Ii Nd Floor, Vs. Floor, Dr. Shyama Prasad East Patel Nagar, New Delhi Mukherjee Civil Centre, Pan: Aarps6904L New Delhi (Appellant) (Respondent)

For Appellant: Sh. Ajay Wadhwa, AdvFor Respondent: Sh. Vijay Verma, CIT DR
Section 142Section 143(3)Section 68

…ve, the address verification of the parties, the bank accounts of the parties and the manner of payment to the parties through pay orders. Therefore, the ld Assessing Officer relying on the decision of the Hon’ble Delhi High Court in case of CIT Vs. La Medica 250 ITR 575 and on the decision of Gujarat High Court in case of Sanjay Oil Cake Industries Vs. CIT 316 ITR 274 disallowed 30% of the purchase shown by the assessee amounting to Rs. 36008930/- on account of inflated purchases. The ld CIT(A) deleted the addition vide para No. 15 of his order and therefore revenue is in appeal before us. Inderpal Singh Wadhawa…

M/S Vardaan Fashion, New Delhi vs. JCIT, New Delhi

In the result ground No. 3 of the appeal of the assessee is dismissed

ITA 1143/DEL/2013[2007-08]Status: DisposedITAT Delhi08 Jul 2016AY 2007-08

Bench: I.C.Sudhir & Shri Prashant Maharishivardan Fashions, Jcit, E-1/7, 2Nd Floor, East Patel Range-33, Vs. Nagar, New Delhi New Delhi Pan:Aacfv0423H (Appellant) (Respondent) Acit, Vardan Fashions, Circle-33(1) E-1/7, 2Nd Floor, East Patel Vs. New Delhi Nagar, New Delhi Pan:Aacfv0423H (Appellant) (Respondent)

For Appellant: Sh. Ajay Wadhwa, AdvFor Respondent: Sh. Vijay Verma, CIT DR
Section 142Section 40

…ee has inflated the purchases and therefore an addition of 30% of the value of purchase debited of Rs. 230034993/- amounting to Rs. 69010498/- was disallowed. Ld Assessing Officer relied on the decision of Hon‟ble Delhi High Court in case of CIT Vs. La Medica 250 ITR 575 and decision of Hon‟ble Gujarat High Court in case of Sanjay Oilcake Industries Vs. CIT 316 ITR 274 for supporting his stand. Vardaan Fashions ITA No 1143 & 950/Del/2013 A Y 2007-08 7. Further as the assessee has made payment of Rs. 54333000/- to the suppliers in respect of purchase of goods through bank pay order and not through a/c payee cros…

Dilip Kumar Sarawgi, Mumbai vs. ITO WD 14(1)(2), Mumbai

In the result, the appeal of the assessee is treated as allowed for statistical purposes

ITA 3304/MUM/2014[2010-11]Status: DisposedITAT Mumbai17 Jun 2016AY 2010-11

Bench: Shri Sanjay Garg & Shri Rajesh Kumarassessment Year: 2007-08 M/S. Om Shree International, Asstt. Comm. Of Income Tax, 115, New India Industrial Range 20(2), Estate, Aayakar Bhavan, Vs. Off Mahakali Caves Road, Mumbai - 400020 Andheri (E), Mumbai – 400 057 Pan: Aaafo 3000A (Appellant) (Respondent) Assessment Year: 2007-08 Office Of The Acit-20(2), M/S. Om Shree International, 612, Piramal Chambers, Off Mahakali Caves Road, Lalbaug, 115, New India Industrial Vs. Mumbai - 400012 Estate, Andheri (E), Mumbai – 59 Pan: Aaafo 3000A (Appellant) (Respondent)

For Appellant: Shri K. Gopal, A.R. & Ms. Neha Paranjpe, A.RFor Respondent: Dr. S. Pandian, D.R
Section 194CSection 40Section 69C

…verifiable by documentary evidence. c. Giving technical reasons for rejecting the purchases made genuinely, because all the notices issued by AO have been duly served. d. Applying the ratio of Delhi High Court judgement in the case of CIT vs. LA Medica (2001) 250 ITR 575 (Delhi) although the facts are different and not applicable in the Appellant's case. e. By treating the purchases of Rs.25,68,750/-, unsubstantiating, unverified, unproved on account of failure of the appellant to discharge the necessary burden of proof and ignoring the submissions made by Appellant from time to time. 3. By disallowing out of le…

Addl.C.I.T. 20(2), Mumbai vs. Om Shree International, Mumbai

In the result, the appeal of the assessee is treated as allowed for statistical purposes

ITA 4575/MUM/2012[2007-08]Status: DisposedITAT Mumbai17 Jun 2016AY 2007-08

Bench: Shri Sanjay Garg & Shri Rajesh Kumarassessment Year: 2007-08 M/S. Om Shree International, Asstt. Comm. Of Income Tax, 115, New India Industrial Range 20(2), Estate, Aayakar Bhavan, Vs. Off Mahakali Caves Road, Mumbai - 400020 Andheri (E), Mumbai – 400 057 Pan: Aaafo 3000A (Appellant) (Respondent) Assessment Year: 2007-08 Office Of The Acit-20(2), M/S. Om Shree International, 612, Piramal Chambers, Off Mahakali Caves Road, Lalbaug, 115, New India Industrial Vs. Mumbai - 400012 Estate, Andheri (E), Mumbai – 59 Pan: Aaafo 3000A (Appellant) (Respondent)

For Appellant: Shri K. Gopal, A.R. & Ms. Neha Paranjpe, A.RFor Respondent: Dr. S. Pandian, D.R
Section 194CSection 40Section 69C

…verifiable by documentary evidence. c. Giving technical reasons for rejecting the purchases made genuinely, because all the notices issued by AO have been duly served. d. Applying the ratio of Delhi High Court judgement in the case of CIT vs. LA Medica (2001) 250 ITR 575 (Delhi) although the facts are different and not applicable in the Appellant's case. e. By treating the purchases of Rs.25,68,750/-, unsubstantiating, unverified, unproved on account of failure of the appellant to discharge the necessary burden of proof and ignoring the submissions made by Appellant from time to time. 3. By disallowing out of le…

ACIT, Meerut vs. M/S. Chitra Prakashan (India) Pvt. Ltd., Meerut

In the result, appeal of revenue is dismissed

ITA 5097/DEL/2012[2009-10]Status: DisposedITAT Delhi30 Oct 2015AY 2009-10

Bench: Sh. A.T.Varkey, Jm & Sh. Prashant Maharishi, Am Asstt. Year : 2009-10

For Appellant: Sh. Hemant Gupta, Sr. DRFor Respondent: Sh. Sanjiv Sapra, O.P.Sapra, Adv
Section 133(6)Section 143(3)

…CIT (A) deleted the addition after perusing the evidences submitted. Therefore, the revenue is in appeal before us on this ground. 04. Before us the LD DR relied on the orders of AO as well as decision of Honorable Delhi high court in case of CIT V La Medica 250 ITR 575. 05. Ld AR of the assessee submitted a chart showing particulars of each of the seven creditors showing details submitted before AO and CIT (A). He submitted that assessee has submitted copies of accounts of creditors for the current year as well as subsequent years to show the payments made to them, Copies of bank statements of the assessee sho…

The Commissioner of Income Tax-III vs. M/S V.J.Equipment Limited

ITTA/305/2008HC Telangana02 Feb 2012

Dharam Pal Dhingra Prop. Dharampal Dhingra Electroncs vs. Commissioner of Income Tax

The appeal is dismissed but no order as to

ITA/36/2008HC Delhi28 May 2008

Bench: HON'BLE MR. JUSTICE MANMOHAN SINGH,HON'BLE MR. JUSTICE MADAN B. LOKUR

Section 132Section 260

…t is also not proved by the assessee that the sales do not comprise of purchases already debited to the assessee’s books of accounts.” Before ITAT and in this Court the Department has relied upon a judgment of this Court in CIT vs. La Medica (2001) 250 ITR 575 (Delhi). ITA No.36/2008 Page 4 of 5 5. Thereafter, it appears that the Assessee did not challenge the order dated 20.4.2005 of the ITAT but initiated proceedings under Section 254(2) of the Income Tax Act, 1961 by filing an application being M.A. No.791/(Del)/2006. The said M.A. No.791/(Del)/2006 was dismissed by the ITAT i…