2025 (7) TMI 821

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.... Assessee : Shri Mangesh Thakore For The Revenue : Shri Ritesh Misra, CIT DR ORDER PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the Revenue against order dated 28/06/2023 passed by NFAC, Delhi for the quantum of assessment passed u/s. 143(3) r.w.s. 147 for the A.Y.2009-10. 2. The only ground raised by the Revenue is that ld. CIT(A) was not correct in directing the l....

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....tion was received from Sales Tax department and accordingly, ld. AO had reason to belief that income to the tune of Rs. 23,31,57,521/- had escaped assessment. The ld. AO simply based on the information received, has made the entire addition of the purchases. Whereas, the case of the assessee was that it has furnished the copies of ledger account, purchase bills, delivery challans, corresponding sa....

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....wance to 25% of the bogus purchases of Rs. 41,86,53,523/- and has restricted addition to Rs. 10,46,86,380/-. 6. We have heard ld. DR and also perused the relevant finding given in the impugned order. The entire premise of the addition which had been made by the ld. AO on account of unexplained purchases of Rs. 41,86,53,523/- is based on information received from Sales Tax department rooted thro....

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....as made the addition. Now once the assessee has shown source of the purchases from the books reflecting in the bank statement and corresponding sales has not been disputed then, to infer that entire purchases are outside the books so as to make entire addition is unjustified. At the most it could be a case of suppression of profits whereby even if it is accepted that assessee might have paid the c....