TaxTMI 
TaxTMI 
2026 (5) TMI 900
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....fter referred to as 'the Act') dated 16.09.2021 by the Assessing Officer, NFAC, Delhi (hereinafter referred to as 'ld. AO'). ITA No. 142/AGR/2025 - Asst Year 2018-19 - Assessee Appeal 2. At the outset, the Learned AR before us submitted that the additional ground raised by the assessee was stated to be not pressed. Accordingly, the same is not even admitted herein. 3. The only issue to be decided in this appeal is as to whether the Learned CITA was justified in confirming the disallowance of expenses of Rs 97,99,086 on an adhoc basis in the facts and circumstances of the instant case. 4. We have heard the rival submissions and perused the materials available on record. The assessee is engaged in the business of manufacture and t....
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....he purpose of business and proceeded to disallow a sum of Rs 97,99,086 in the assessment. This action of the Learned AO was upheld by the Learned CITA. 6. From the list of expenses, we find that majority of the expenditure was incurred towards buffalo slaughtering expenses to the tune of Rs 16,57,54, 017 and the same duly subjected to deduction of tax at source by the assessee. During the course of assessment proceedings, the assessee had duly furnished the complete books of accounts, bills, vouchers, stock register, purchase details, and bank statements. The expenses bills and vouchers for all the heads were also produced before the Learned AO. Hence, the contentions of the Learned AO and CITA that no details were furnished are found to....
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....on. Yet another ground raised is challenging the confirmation of addition of Rs 9,89,91,987 on account of alleged bogus purchases. 9. We have heard the rival submissions and perused the materials available on record. It is not in dispute that the assessee had made purchases from Baloch Jamal Khan Bhuran Khan for Rs 9,89,91,987 and from Nasruddin Qureshi for Rs 69,93,57,000 during the year under consideration. It is not in dispute that the payments for the said purchases have been made by the assessee through regular banking channels. The assessee was asked to prove the veracity of the purchases made from the aforesaid parties. The assessee furnished the following documents:- a) Copy of ledger account of Nasruddin Qureshi as appe....
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....prepared. Purchase of animal is a routine business activity and there is no agreement or Memorandum of Understanding (MOU) signed with the suppliers. We find that the corresponding sales made by the assessee out of disputed purchases have not been doubted by the revenue. Further in the scrutiny assessment order of Nasruddin Qureshi, no adverse findings were recorded by his AO with regard to sales effected to assessee herein. The assessee had also duly explained its business of slaughtering in which it stated that it is done by illiterate people selling the animals. It was submitted that there is absolutely no evidence brought on record by the Learned AO / CITA to prove that there was any cash that was received back by the assessee from thes....
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....m Baloch Jamal Khan Bhuran Khan for Rs 9,89,91,987, we find that the assessee had furnished only the preliminary documents before the Learned AO as listed supra. It is pertinent to note that the corresponding sales made by the assessee out of purchases from this party had not been doubted by the revenue. Hence the only conclusion that could be drawn is that the assessee could have made purchases from the grey market in order to have some savings in indirect taxes. Hence only the profit element embedded in the value of such disputed purchases need to be added, which is estimated @ 2% in the peculiar facts and circumstances of the instant case. Considering the fact that assessee had made purchases from this party for the first time during the....