Bholenath Foods Limited Vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Bholenath Foods Limited, is a private limited company engaged in trading food grains. It filed its Income Tax Return (ITR) for Assessment Year 2012-13 declaring an income of Rs.1,31,83,635/-. The case was selected for scrutiny based on information from a survey conducted on Shri Ram Prakash Bhatia, who admitted to providing accommodation entries through various proprietorship concerns, including Jai Bharat Foods. The assessee allegedly paid Rs.81,50,586/- to Jai Bharat Foods, a bogus concern, during FY 2011-12. The Assessing Officer (AO) issued a notice under section 148 and made an addition of Rs.1,35,19,962/- on account of bogus purchases. The assessee appealed against this order, which was dismissed by the Commissioner (Appeals). The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Legality of reopening the assessment under section 148
• 2. Validity of the addition made by the AO under section 68

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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