2025 (2) TMI 1505

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....1633 for Assessment Year 2021-22. 2. The appeal was filed delayed by 104 days. The appellant filed an application for delay condonation alongwith an affidavit duly explaining the circumstances for the delay. After considering the reasons given by the assessee, the delay is hereby condoned and appeal is taken up for consideration on merits. 3. Brief facts of the case are that appellant is a private limited company and is engaged in the business of manufacturing and trading of Pet Flakes. The return of income was field on 19.02.2022 declaring total income at Rs. 15,66,450/-. Case was selected for scrutiny, on the reasons that appellant has made substantial purchases from suppliers who are either non-Filer(s) or have filed non-business I....

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....cluding that purchases made by the appellant were fake without any credible evidence but just on basis of the responses received from the Suppliers. The findings. relied on general information received from the Suppliers and market trends rather than specific facts pertaining to the appellant's transactions, which does not meet the standard of proof required for such allegations. 4. That Ld. Assessing Officer (A.O.) did not provide the appellant with a sufficient opportunity to clarify the nature of the purchases or to respond to the allegations prior to making substantial additions to the income, amounting to Rs. 1,59,57,125/- This failure to adhere to due process undermines the principles of natural justice. 5. That ....

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....le Tribunal may be pleased to condone the delay and permit the hearing of the appeal on its merits. 10. The appellant reserves the right to add, amend or modify any of the ground/s of appeal." 5. Before us ld. AR of the assessee reiterated the same facts as were submitted before the ld. CIT(A) in statements of facts and written submission filed before the CIT(A). 6. On the other hand, ld. Sr. DR vehemently supported the orders of the lower authorities and argued that once the AO established that the purchases made by the assessee are bogus and the parties are non-existent / unknown to assessee, the action of the AO in making estimation of income by applying NP rate of 20% is most reasonable and he prayed for the confirmation ....