2025 (12) TMI 1028

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....Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 31.12.2022 by the Assessing Officer, ITO, NFAC, Delhi (hereinafter referred to as 'ld. AO'). 2. None appeared on behalf of the assessee. Notice of hearing sent to the assessee's address mentioned in Form 36 has been returned unserved with the postal remark "party left". Hence, we proceed to dispose of the appeal by hearing the ld DR and based on materials available on record. 3. The only issue to be decided in this as whether the ld CIT(A) was justified in confirming the addition made u/s. 69C of the account of bogus purchase by estimating the profit @ 12.5% of value of purchases. 4. We have heard the ld DR and perused the materials available on record. The assessee ....

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....in the audited books of account and payment to the suppliers were made through regular banking channels and the sales made out of such purchases were also reflected in the books of account and the sales had not been doubted by the revenue. However, ld CIT(A) without giving any independent finding dismissed the appeal of the assessee. 5. At the outset, we find that the addition on account of profit element embedded in the value of purchase had been sought to be added by the revenue in the instant case by invoking the provisions of section 69C of the Act. In our considered opinion, the provisions of section 69C of the Act, per se cannot be applied at all as the purchase had been accounted already in the books of account of the assessee. Th....