2026 (4) TMI 1316

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....sis of information received from DTIT in its Units at Mumbai and Kolkata. The Assessee had originally filed return of income declaring income at Rs. 6,90,213/- which was assessed under Section 143(3) of the Income Tax Act, 1961 ('Act' for short) determining the total income at Rs. 8,25,640/- making additions/disallowance of Rs. 1,35,427/-. Order under Section 143(3) r.w. Section 147 came to be passed on 14/12/2018 by assessing the income of the Assessee at Rs. 4,88,77,700/- by making an additions by applying commission as 0.5% on the total turnover. Aggrieved by the assessment order dated 14/12/2018, Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vie order dated 25/07/2019 deleted the addition made by the Assesse....

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....issue has been dealt and decided by the Coordinate Bench of the Tribunal in the appeal filed by the Department for Assessment Year 2010-11 in Assessee's own case in ITA No. 5373/Del/2019, vide order dated 18/12/2024, held as under: - "3. We have heard the rival submissions and perused the materials available on record. The return of income for the assessment year 2010-11 was filed by the assessee company on 8-2-2011 declaring total income of Rs 5,04,056/-. The said return was duly processed under section 143(1) of the Act. Based on information received on 20-3-2017 from the office of Deputy Director of Income Tax (Inv.) Unit 6(4), Mumbai dated 14-3- 2017, the assessment was sought to be reopened for the assessee for assessment year....

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....hase and sales transactions with assessee herein. The Learned AO doubted that the transactions of purchases and sales made by the assessee with Krithvi Enterprises Limited are not genuine and proceeded to treat the difference between the amounts received in the sum of Rs 44,11,50,000/- and amounts paid of Rs 75,90,00,000/- amounting to Rs 31,78,50,000/- as inflated purchases made by the assessee by manipulating the books of accounts to reduce the taxable income. Accordingly, the Learned AO proceeded to reject the books of accounts of the assessee and the book results thereon in terms of provisions of section 145(3) of the Act. Accordingly, the Learned AO proceeded to estimate the profit of the assessee for the year under consideration. For ....

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....uared up during the year under consideration itself. Further, the Learned AO had not mentioned from the statements of Mr. Anil Kumar Jain and Mr. Pravin Kumar Jain, that they had provided bogus or hawala entries to the assessee company. The statements of such persons were also not provided to the assessee for the purpose of rebuttal. Hence, there is absolutely no case for the revenue to use the said statements even if it is found to be adverse against the assessee. 5. In view of the aforesaid observations, we have no hesitation to hold that the books of accounts had been wrongly rejected by the Learned AO in the facts and circumstances of the instant case and consequentially, no profit could be estimated in assessee's case. Further....