Deputy Commissioner of Income Tax, Central Circle-04, Jaipur vs. Sunder Das Sonkiya

Parties Involved

Facts Summary

The assessee, Sunder Das Sonkiya, engaged in the export of gems and jewellery, filed an income return declaring income of Rs. 24,000. The Assessing Officer initiated reassessment proceedings based on information from a search operation that revealed the assessee had obtained purchase bills amounting to Rs. 1,73,34,424 from entities involved in providing bogus purchase bills. The Assessing Officer disallowed 25% of these purchases, amounting to Rs. 43,33,606, as non-genuine and added this amount to the assessee's income. The Commissioner of Income Tax (Appeals) deleted this addition, and the revenue appealed against this decision.…

Legal Issues

• 1. Whether the Commissioner of Income Tax (Appeals) was justified in deleting the addition of Rs. 43,33,606/- without appreciating the fact that the assessee had shown bogus purchases of Rs. 1,73,34,424/-.
• 2. Whether the Commissioner of Income Tax (Appeals) was justified in deleting the addition of Rs. 43,33,606/- without considering the admission by Shri Rajendra Jain that he was engaged in issuing bogus bills on a commission basis.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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