2025 (6) TMI 1929

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..... 143(3) of the Income tax Act, 1961 [the Act] dated 28.9.2021 by the National e-Assessment Centre was dismissed. Therefore, assessee has filed appeal raising the following grounds of appeal:- "1. On the facts and circumstance of the case in law the Ld.CIT (A) has erred in confirming addition of Rs. 16,06,692/-on account of alleged purchase despite of facts that assessee is covered under section 44AD of the I.T act. 2. On the facts and circumstance of the case in law the Ld. CIT(A) has erred in confirming addition whereas no disallowance can be made when assessee was covered under section 44AD. 3. On the facts and circumstance of the case in law the Ld.CIT (A) has erred in confirming addition of Rs. 16,06,692/-on ....

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....oned. To support that assessee was given a wrong advise, assessee has also submitted a Certificate dated 29.5.2025 of the CA stating that he only advised not to file the appeal. 3. The ld. AR supported the Affidavit of the assessee and CA's certificate stating that delay needs to be condoned. 4. The ld. DR vehemently objected to the same and stated that this is not sufficient cause for delay in filing of appeal. 5. We have carefully considered the rival contentions and perused the Affidavit of the assessee narrating the facts what caused delay and also the certificate of the CA, who initially advised the assessee not to file the appeal, which clearly show that delay was caused on account of bonafide belief of the assessee that appe....

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....which the addition/ disallowance is made. With respect to the details of purchases, it was submitted that the supplier had GST No. and the address of supplier was provided. The assessee also provided the details of purchases. It was submitted that all these purchases have been made in cash. The assessee also objected that these are not bogus purchases as claimed by the ld. AO because GST department has not at all issued any notice to the assessee for withdrawing input credit. Assessee also explained and submitted proof of screenshot of GST portal. Assessee also challenged that merely information is provided by GST department, addition cannot be made in the hands of assessee. In the end, it was also submitted that as the assessee has filed a....

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....ve been made in the hands of the assessee when income is offered u/s. 44AD of the Act. On the merits of the case, he submitted that the AO has made addition without making an enquiry and merely relying on the information of GST Department. He submits that GST Portal screenshot was provided to the AO where GST credit was not withdrawn by the GST department. Without making an independent enquiry, the AO could not have made this addition. He further referred to the provisions of section 139 of the Act and stated that where the assessee is filing return of income u/s. 44AD of the Act, he is not obliged to have the details of the purchases. Therefore, no addition could have been made in the hands of the assessee. 9. The ld. DR vehemently supp....