DCIT, CENTRAL CIRCLE-1(3), BAENGALURU vs. LATE SHRI MAHABIR PRASAD(LEGAL HEIR MS. PARUL KANSARIA), BENGALURU

In the result, the appeal filed by the assessee is allowed

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

purchase amount of ₹ 43,825,000/– as bogus. Accordingly, he confirmed the addition. The assessee is aggrieved and is in appeal before us. ITA Nos.410-412-169-170- CO 6/Bang/2024 Page 13 of 40 23. Firstly, we come to the appeal of the learned assessing officer filed for assessment year 2017 – 18 in ITA number 169/Bengaluru/2024 and for assessment year

LATE SHRI MAHABIR PRASAD(LEGAL HEIR MS. PARUL KANSARIA),BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 1(3) , BENGALURU

In the result, the appeal filed by the assessee is allowed

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

purchase amount of ₹ 43,825,000/– as bogus. Accordingly, he confirmed the addition. The assessee is aggrieved and is in appeal before us. ITA Nos.410-412-169-170- CO 6/Bang/2024 Page 13 of 40 23. Firstly, we come to the appeal of the learned assessing officer filed for assessment year 2017 – 18 in ITA number 169/Bengaluru/2024 and for assessment year

LATE SHRI MAHABIR PRASAD(LEGAL HEIR MS. PARUL KANSARIA),BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(3), BENGALURU

In the result, the appeal filed by the assessee is allowed

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

purchase amount of ₹ 43,825,000/– as bogus. Accordingly, he confirmed the addition. The assessee is aggrieved and is in appeal before us. ITA Nos.410-412-169-170- CO 6/Bang/2024 Page 13 of 40 23. Firstly, we come to the appeal of the learned assessing officer filed for assessment year 2017 – 18 in ITA number 169/Bengaluru/2024 and for assessment year

DCIT, CENTRAL CIRCLE-1(3), BENGALURU vs. LATE SHRI MAHABIR PRASAD (LEGAL HEIR MS. PARUL KANSARIA), BENGALURU

In the result, the appeal filed by the assessee is allowed

bogus purchases for assessment year 2018 19\nu/s.69C of the Act of ₹ 42,815,000/- the learned CIT – A held that\napart from stating that the relevant bills/invoices/payments details\nand GST returns have been submitted no other details has been\nfurnished by the assessee to show that the purchases are real. Therefore, he upheld the findings of the learned assessing

ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1,MANGALORE, MANGALORE vs. RAJ DIAMONDS, MUMBAI

In the result the appeal of the Revenue is dismissed &

Bench: Shri Prashant Maharishi & Shri Keshav Dubeyassessment Year : 2018-19

purchases to the tune of Rs.1,29,19,964/- from the entity M/s. Tanman Jewels Pvt Ltd. Moreover, there was another information available with Income Tax Department that the assessee M/s. Raj Diamonds had a transaction to the tune of Rs.1,20,03,330/- with M/s. Vallabh Diamonds Pvt Ltd. As per this information, M/s. Vallabh Diamonds

BYSANI ADINARAYAGUPTHA SRINATH,BENGALURU vs. JOINT COMMISSIONER OF INCOME TAX (OSD), CENTRAL CIRCLE-1(3), BENGALURU

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

bogus transactions. Sales cannot take place without purchases, and reconciliation of stock showed that no part of purchases could be treated as unexplained. The allegation that 25% of cash purchases were invested in jewellery or cash loans was also incorrect. No such assets were found in the search, and the value of seized jewellery was much lower than the disallowance

BYSANI ADINARAYAGUPATHA SRINATH,BENGALURU vs. JOINT COMMISSIONER OF INCOME TAX (OSD), CENTRAL CIRCLE-1(3), BENGALURU

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

bogus transactions. Sales cannot take place without purchases, and reconciliation of stock showed that no part of purchases could be treated as unexplained. The allegation that 25% of cash purchases were invested in jewellery or cash loans was also incorrect. No such assets were found in the search, and the value of seized jewellery was much lower than the disallowance

BYSANI SRINATH MAMATHA,BENGALURU vs. JOINT COMMISSIONER OF INCOME TAX (OSD) CENTRAL CIRCLE-1(3), BENGALURU

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

bogus transactions. Sales cannot take place without purchases, and reconciliation of stock showed that no part of purchases could be treated as unexplained. The allegation that 25% of cash purchases were invested in jewellery or cash loans was also incorrect. No such assets were found in the search, and the value of seized jewellery was much lower than the disallowance

BYSANI SRINATH MAMATHA,BENGALURU vs. JOINT COMMISSIONER OF INCOME TAX (OSD), CENTRAL CIRCLE-1(3), BENGALURU

In the result, the appeals of the assessee for

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

bogus transactions. Sales cannot take place without purchases, and reconciliation of stock showed that no part of purchases could be treated as unexplained. The allegation that 25% of cash purchases were invested in jewellery or cash loans was also incorrect. No such assets were found in the search, and the value of seized jewellery was much lower than the disallowance

BYSANI SRINATH MAMATHA,BENGALURU vs. JOINT COMMISSIONER OF INCOME TAX, (OSD) CENTRAL CIRCLE-1(3), BENGALURU

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

bogus transactions. Sales cannot take place without purchases, and reconciliation of stock showed that no part of purchases could be treated as unexplained. The allegation that 25% of cash purchases were invested in jewellery or cash loans was also incorrect. No such assets were found in the search, and the value of seized jewellery was much lower than the disallowance

BYSANI SRINATH MAMATHA,BENGALURU vs. JOINT COMMISSIONER OF INCOME TAX (OSD), CENTRAL CIRCLE-1(3), BENGALURU

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

bogus transactions. Sales cannot take place without purchases, and reconciliation of stock showed that no part of purchases could be treated as unexplained. The allegation that 25% of cash purchases were invested in jewellery or cash loans was also incorrect. No such assets were found in the search, and the value of seized jewellery was much lower than the disallowance

BYSANI ADINARAYAGUPTHA SRINATH,BENGALURU vs. JOINT COMMISSIONER OF INCOME TAX(OSD), CENTRAL CIRCLE-1(3), BENGALURU

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

bogus transactions. Sales cannot take place without purchases, and reconciliation of stock showed that no part of purchases could be treated as unexplained. The allegation that 25% of cash purchases were invested in jewellery or cash loans was also incorrect. No such assets were found in the search, and the value of seized jewellery was much lower than the disallowance

BYSANI ADINARAYAGUPTHA SRINATH,BENGALURU vs. JOINT COMMISSIONER OF INCOME TAX(OSD), CENTRAL CIRCLE 1(3), BENGALURU

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

bogus transactions. Sales cannot take place without purchases, and reconciliation of stock showed that no part of purchases could be treated as unexplained. The allegation that 25% of cash purchases were invested in jewellery or cash loans was also incorrect. No such assets were found in the search, and the value of seized jewellery was much lower than the disallowance

BYSANI ADINARAYAGUPTHA SRINATH,BENGALURU vs. JOINT COMMISSIONER OF INCOME TAX (OSD), CENTRAL CIRCLE-1(3), BENGALURU

In the result, the appeals of the assessee for Assessment Years

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

bogus transactions. Sales cannot take place without purchases, and reconciliation of stock showed that no part of purchases could be treated as unexplained. The allegation that 25% of cash purchases were invested in jewellery or cash loans was also incorrect. No such assets were found in the search, and the value of seized jewellery was much lower than the disallowance

BYSANI SRINATH MAMATHA,BENGALURU vs. JOINT COMMISSIONER OF INCOME TAX(OSD), CENTRAL CIRCLE-1(3), BENGALURU

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

bogus transactions. Sales cannot take place without purchases, and reconciliation of stock showed that no part of purchases could be treated as unexplained. The allegation that 25% of cash purchases were invested in jewellery or cash loans was also incorrect. No such assets were found in the search, and the value of seized jewellery was much lower than the disallowance

BYSANI SRINATH MAMATHA,BENGALURU vs. JOINT COMMISSIONER OF INCOME TAX (OSD) CENTRAL CIRCLE-1(3), BENGALURU

In the result, the appeals of the assessee for Assessment Years

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

bogus transactions. Sales cannot take place without purchases, and reconciliation of stock showed that no part of purchases could be treated as unexplained. The allegation that 25% of cash purchases were invested in jewellery or cash loans was also incorrect. No such assets were found in the search, and the value of seized jewellery was much lower than the disallowance

M/S. EAGLE TRADERS & LOGISTICS,BELLARY vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE- 2(3), BANGALORE

Accordingly, the appeals filed by the assessee are allowed in above terms

Bench: Shri. Laxmi Prasad Sahu & Shri. Keshav Dubey

bogus entry and it is proved beyond reasonable doubt that it is only an adjustment entry to reduce the profits as per books by inflating expenditure and reducing tax liability thereon. In the light of the above, the assessee was further asked to substantiate why section 40A(3) of the Act should not be invoked in the assessee’s case

M/S. EAGLE TRADERS & LOGISTICS,BELLARY vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE- 2(3), BANGALORE

Accordingly, the appeals filed by the assessee are allowed in above terms

Bench: Shri. Laxmi Prasad Sahu & Shri. Keshav Dubey

bogus entry and it is proved beyond reasonable doubt that it is only an adjustment entry to reduce the profits as per books by inflating expenditure and reducing tax liability thereon. In the light of the above, the assessee was further asked to substantiate why section 40A(3) of the Act should not be invoked in the assessee’s case