Appeal Dismissed: ITAT Upholds NFAC's Order Limiting Revenue's Additions in Income Tax Assessment.

The ITAT dismissed the Revenue's appeal against the NFAC's order concerning the assessment under Section 143(3) read with Section 147 of the Income-tax Act, 1961. The Revenue's appeal, challenging the CIT (A)'s decision to restrict the addition to 3% of gross profit, was deemed infructuous as it was filed post the co-ordinate Bench's decision. The dismissal was pronounced in open court.

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Issues involved:
The judgment involves an appeal by the Income Tax Officer against the appellate order passed by the National Faceless Appeal Centre, Delhi, regarding the assessment order under Section 143(3) read with section 147 of the Income-tax Act, 1961.

Grounds of Appeal:
The Assessing Officer raised multiple grounds of appeal questioning the application of Gross Profit rate, the authenticity of purchases, and the presumption of purchases from unknown parties.

Brief Facts:
The assessee, a partnership firm, filed its return of income which was later reopened resulting in an assessment order adding a significant amount on account of alleged bogus purchases from an accommodation entry provider. The appeal before the CIT (A) led to a partial allowance, reducing the profit involved in the bogus purchase to 60.45% based on the average gross profit of the last three years.

Appellate Proceedings:
Both parties were dissatisfied with the CIT (A) order. The assessee approached a co-ordinate Bench which restricted the addition to 3% of gross profit. However, it was noted that the Revenue's appeal was filed after the co-ordinate Bench's decision, rendering it infractuous. The appeal of the Revenue was subsequently dismissed.

Conclusion:
The judgment ultimately resulted in the dismissal of the Revenue's appeal, with the order pronounced in open court on a specified date.

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