2024 (9) TMI 1854

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....come-tax Act, 1961 (hereinafter referred to as 'the Act') dated 30.11.2018 by the Assessing Officer, JCIT, Special Range-4, New Delhi (hereinafter referred to as 'ld. AO'). 2. The only issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in enhancing the addition to Rs 1,62,13,633/- as against Rs 32,42,726/- made by the ld. AO on account of alleged bogus purchases u/s 69C of the Act in the facts and circumstances of the case. 3. We have heard the rival submissions and perused the materials available on record. The assessee company filed its original return of income for the Asst Year 2011-123 on 19.9.2011 declaring total income of Rs 31,41,11,875/-. The assessment order was passed u/s 143(3) of the Act on 3....

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.... Shri Bhatia to the assessee. The ld. CIT(A) partly allowed the appeal of the assessee by restricting the disallowance of alleged bogus purchases @ 16.26% as against 20% made by the ld. AO. Both assessee as well as the department preferred appeals before this Tribunal. The Tribunal allowed the assessee's appeal and dismissed the revenue's appeal vide order dated 25.5.2022. 5. Another reopening notice u/s 148 of the Act stood issued to the assessee on 28.3.2018 after recording of reasons based on the information received from the office of ITO (Investigation) Gurgaon that the assessee has made payment of Rs 47,91,307/- during the year to M/s Ramesh Kumar Tarun Kumar, Prop. Tarun Kumar on account of purchase of cotton. As per another infor....

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....annels. All these details were summarily brushed aside by the ld. AO added the profit element embedded in the value of purchases from these two concerns by estimating the profit at 20% thereon and made an addition of Rs 32,42,726/-. 6. The ld. CIT(A) made an enhancement to the income of the assessee by making an addition of 100% of value of purchases from these two concerns at Rs 1,62,13,633/- as against Rs 32,42,726/- made by the ld. AO. This addition was confirmed by the ld. CIT(A) by stating that the addition has been made u/s 69C of the Act. 7. First of all, we find that the entire purchases made from these two concerns had been duly recorded in the books of accounts of the assessee company and payments made to them were through r....