2026 (8) TMI 1033

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....Assessee under Section 147 read with Sections 144 and 144B of the Income-tax Act, 1961 [hereinafter referred to as 'the Act'] for Assessment Year 2018-2019. 2. When the appeal was taken up for hearing the Learned Authorised Representative for the Assessee pressed into service Ground No.3 raised in the present appeal and advanced submissions challenging the merits of addition made by the Assessing Officer which were confirmed by the Learned CIT(A). We have heard both the sides on Ground No.3 raised in the present appeal which reads as under: "3). That on the facts and in the circumstances of the case, the Ld. CIT(A) grossly erred in sustaining addition of Rs. 76,62,500/- and upholding the observation regarding genuine purchases a....

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....ading Group, noting non-compliance of notices issued under Section 133(6) by CTPL and Prachem Laboratories, and highlighting the deficiencies in Form-403 filed by the Assessee to support movement of goods, the Assessing Officer treated the entire purchases of INR.76,62,500/- as bogus and disallowed the same under Section 37(1). The Assessing Officer completed the reassessment vide Assessment Order, dated at assessed income of INR.79,62,077/- [INR.76,62,500/- + INR.2,99,577/-] 5. Being aggrieved, the Assessee preferred appeal before the Learned CIT(A), and challenged the above addition made on account of alleged bogus purchases. In appeal, the Ld. CIT(A) affirmed the action of the Assessing Officer by holding that mere invoices, banking p....

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....ents. is also not in dispute that the Assessing Officer has neither rejected the books of account nor disturbed the corresponding sales/turnover disclosed by the Assessee. At the same time, the Revenue had placed reliance on adverse material/report pertaining to CPTL received from GST Authorities indicating that CPTL was engaged in providing accommodation entries for bogus purchases. On consideration of the overall facts, we are of the considered view that in the facts and circumstances of the present case, the disallowance of the entire alleged bogus purchase is not warranted. Given the fact that (a) the Assessee has furnished documentary evidence in the form of purchase invoices, delivery challans (with some discrepancies), stock re....