2025 (12) TMI 396

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....250 of the Income Tax Act, 1961 (hereinafter referred to as the "Act") and relates to Assessment Year (A.Y.) 2021-22. 2. Grounds raised by the assessee read as under: "1. The Assessment order is bad in law as well as on facts. 2. The Learned Assessing Officer erred in rejecting Books of Accounts by applying section 145 of Income Tax Act, 1961 due to non-submission of reply for Show Cause Notice (SCN) and the First Appellate Authority erred in confirming the same. 3. The learned Assessing Officer erred in not following cardinal principle of law that Burden of Proof is on the person who alleges. The Learned Assessing Officer only relied on the data available in departmental data base (Insight Portal). 4.....

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....tion available on the INSIGHT portal of the Department revealing the assessee to have made substantial purchases from suppliers who were either non-filers or had filed non-business ITR or reflected a substantially lower turnover in ITR as compared to turnover shown in GSTR 1 return. On the basis of this information, Ld. Counsel for the assessee pointed out from the assessment order, that the AO noted that there was a possibility of the assessee having booked bogus expenses in order to reduce its profit / taxable income. He pointed out that the INSIGHT portal revealed the assessee to have made purchases from two parties; i. Manan Mayurkumar Raval, Proprietary of Brahmmani Sales Corporation; & ii. Abhishek Harivallabh Suthar, Proprietary of A....

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....id two parties. However, since it is a fact there cannot be any sale without purchase it cannot be denied that the assessee had purchased goods from some other party (-ies). The assessee has not disclosed the details of those transactions and the source of the purchases made. It is presumed that the assessee might have purchased the goods from the grey market at a considerably lower rate. There were lower incidental expenses and there by earning a higher profit than the normal profit. Further, on perusal of the audit report for the year under assessment, it is observed that the assessee have declared Gross profit and net profit for the previous year and preceding previous year as follows. SI. No. Particulars Previous Year % P....