Dhar & Company Pvt. Ltd. Vs. ITO Wad

Parties Involved

Facts Summary

The assessee, Dhar & Company Pvt. Ltd., filed its return of income on 30.09.2011, declaring a total income of ₹9,78,204/-. Subsequently, a search action was conducted on Shri Sanjiw Kumar Singh, an entry operator, who admitted to providing accommodation entries in the form of bogus purchases. The Assessing Officer (AO) received information that the assessee was a beneficiary of such bogus purchases to the tune of ₹42,24,191/-. Consequently, the case of the assessee was reopened, and the AO issued various notices which were complied with by the assessee. Despite this, the AO treated the purchases as bogus and added them to the income of the assessee as unexplained expenditure. The Commissioner of Income Tax (Appeals) (CIT(A)) affirmed the order of the AO, leading to this appeal.…

Legal Issues

• 1. Whether the delay in filing the appeal should be condoned.
• 2. Whether the addition of ₹42,24,191/- as bogus purchases is justified.

Judgment Outcome

Decided in favour of Assessee.

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