Bhansali Udyog Pvt. Ltd. Vs. Income Tax Officer

Parties Involved

Facts Summary

The case involves an appeal by Bhansali Udyog Pvt. Ltd. against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, dated 17.01.2025. The appeal pertains to the assessment year 2018-19 and challenges the disallowance of purchases amounting to Rs.53,48,116/- sourced from M/s. RCI Industries and Technologies Ltd., deemed as bogus under section 69C of the Income-tax Act, 1961. The CIT(A)/NFAC restricted the disallowance to 12.5% of the purchases, amounting to Rs.6,68,515/-. The assessee is engaged in the business of manufacturing electrical wires and cables, and there is no dispute that the possibility of sourcing purchases from unregistered dealers cannot be ruled out. The corresponding sales have not been questioned in the lower proceedings.…

Legal Issues

• 1. Whether the purchases amounting to Rs.53,48,116/- sourced from M/s. RCI Industries and Technologies Ltd. should be treated as bogus under section 69C of the Income-tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Sh. Sandeep Kumar vs. Income Tax Officer, Ward-1, Panipat

  Delhi Bench benchAY 2018-19Partly Allowed

• Sh. Mahesh Chand Vs. Income Tax Officer, Delhi

• Sh. Rajesh Kumar Vs. Income Tax Officer, Ward-34(5), Delhi

• SCK Infratech Pvt. Ltd. Vs. DCIT

  Delhi Bench benchAY 2020-21Partly Allowed

• Luvkesh Textile Industries Pvt. Ltd. vs. Deputy Commissioner of Income Tax

• ITA No. 5252/MUM/2024 (AY: 2011-12)

  SMC Bench, Mumbai benchAY 2011-12Dismissed