2024 (11) TMI 389

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....Act) impugning an order dated 13.08.2018 (hereafter the impugned order) passed by the learned Income Tax Appellate Tribunal (hereafter the ITAT) in ITA No. 4907/Del/2014 captioned M/s Paramount Residency Pvt. Ltd. v. Deputy CIT and ITA No. 6102/Del/2014 captioned Deputy CIT v. M/s Paramount Residency Pvt. Ltd. 2. The said cross appeals were filed by the Assessee and the Revenue respectively assailing an order dated 08.08.2014 passed by the Commissioner of Income Tax (Appeals), Delhi [hereafter the CIT(A)] in respect of the assessment year (AY) 2010-11. The learned ITAT had found the case in favour of the assessee and held that purchases of the amount of Rs. 7,86,21,320/-, which were alleged to be bogus purchases and were disallowed as expe....

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....us purchases despite the fact that upon field enquiries the suppliers could not be located and the assessee failed to produce the parties despite several opportunities?" 5. However, at the hearing held on 20.05.2024, the learned counsel for the Revenue had handed over the questions of law as reframed and on the said basis, this Court noted the following questions for consideration in the present appeal: "A. Whether the impugned judgment is unsustainable in law by being directly contrary to Section 69C of the Act and which is not even referred to by the ITAT, before interfering in the addition made in the present case? B. Whether the interference by the forums below in respect of the addition made by the AO is wholly perverse and on gro....

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....urchases. 8. The said question arises in the following context. Search and seizure operations under Section 132 of the Act were conducted on 11.03.2011 in M/s Paramount, Gulshan and Ajnara Group cases. The assessee company, which is a part of the Paramount Group, is engaged in construction of residential and commercial projects in the State of Uttar Pradesh. 9. Notice under Section 153A of the Act was issued to the assessee on 09.10.2012. Pursuant to the same, the assessee filed its income tax returns for the AY 2010-11. 10. During the course of assessment proceedings, the learned AO found that the assessee had booked purchases of material from four entities (M/s Mohan Ram Trading Co.; M/s Shyamji Traders; Ganga Trading Co. & U-Tek Sales....

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....of supplies was evidenced by receipts issued by transporter (GRs); the books of accounts were audited; and the suppliers were registered under the Sales Tax Act and had a valid TIN. In addition, the assessee also furnished the copy of the PAN cards of the suppliers in question. 15. The learned CIT(A) embarked on the exercise of valuing the project to determine, the quantum of expenditure that could be reasonably expected incurred by the assessee. So far as the four entities are concerned, the learned CIT(A) raised doubts as to their existence as the amounts paid by the asseessee was withdrawn by those entities. However, on the basis of the valuation of the project, the learned CIT(A) concluded that expenditure as claimed had, in fact, been....