DCIT, Central circle 4(3) Vs. Balajee Mini Steels & Rerolling Private Limited
Parties Involved
Facts Summary
The assessee, Balajee Mini Steels & Rerolling Private Limited, filed its return of income for the assessment years 2015-16 to 2018-19. A search operation was conducted under section 132 of the Act, revealing that the assessee was involved in bogus sale and purchase transactions intended to inflate turnover. The Assessing Officer (AO) made additions to the assessee's income based on these bogus transactions. In appellate proceedings, the Commissioner of Income-tax (Appeals) (CIT(A)) deleted these additions, holding that the transactions were managed by the same brokers/commission agents and were fully disclosed in the books of account. The Revenue appealed against this decision, leading to the current appeals before the Income Tax Appellate Tribunal (ITAT).…
Decision in favour of
Assessee
Legal Issues
- 1. Deletion of addition by the CIT(A) of ₹1,07,03,817/- made by the AO on account of suppression of income in respect of bogus purchases.
- 2. Deletion of addition of ₹2,97,52,993/- by the CIT(A) as made by the AO on estimation basis by applying the rate of 4% on non-genuine purchases.
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
6 precedents cited in this judgement.
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