2026 (5) TMI 897

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.... Act') dated 25.04.2025 by the Assessing Officer, ACIT, Central Circle- 16, New Delhi (hereinafter referred to as 'ld. AO'). 2. The only effective to be decided on merits is as to whether the learned CITA was justified in confirming addition of Rs 15,62,648 on account of alleged commission earned by applying arbitrary rate @ 8% on sales by holding entire sales made by the assessee to his partnership firm as bogus in the facts and circumstances of the instant case. 3. We have heard the rival submissions and perused the materials available on record. The assessee is engaged in the business of civil construction under the proprietary concern M/s Roadtech and had filed his return of income for the assessment year 2023-24 on 31-10-2023 dec....

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....at he only enters data in tally accounting software on the directions of Shri Ashok Kumar. On further asked about M/s Roadtech involved in bogus billing, he appears to have stated that bogus job work expenses are being booked in the name of M/s Roadtech in the S. S. Chauhan & Sons. In regard to contents of the above statement, it was submitted by the assessee that Shri Jitendra Kumar is only a small inexperienced accountant in the partnership firm S. S. Chauhan & Sons, having basic knowledge of accounting, drawing salary of Rs. 2.5 lakhs per annum. In the initial part of the statement, he stated that he only enters data in accounting software and has no knowledge about the reality of transactions happening or not. But in the later part of s....

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....the assessee; the corresponding purchases made by the assessee were not doubted by the revenue; the assessee had sufficient stocks to effect the sales and to the extent of sales, sufficient reduction in the stocks were duly made by the assessee. It is pertinent to note that the purchases for effecting the sales to partnership firm were made from independent third party vendors in the normal course of business operations by the assessee, which has been accepted by the revenue. Once the purchases have been accepted as genuine, the corresponding sales made by the assessee cannot be doubted. It is not the case of the revenue that the assessee had retained the stock of goods purchased with him and is part of the closing stock. This goes to prove....