Gargi Overseas Pvt. Ltd Vs. Income Tax Officer, Ward-10(1), Delhi

Parties Involved

Facts Summary

The case involves Gargi Overseas Pvt. Ltd, which is engaged in the purchase and sale of bullion and commodities like rice. The assessee had made purchases from M/s. Mahavir Prasad Suresh Kumar and M/s. Umesh Kumar Vivek Kumar, totaling Rs. 27,06,51,352/-. These transactions were recorded in the books of account and payments were made through regular banking channels. The Assessing Officer (AO) treated these purchases as unexplained expenditure under Section 69C of the Income-tax Act, 1961, based on a survey statement from Shri Ashok Kumar Gupta, who claimed to provide bogus entries. The assessee argued that the purchases were genuine and supported by documentary evidence. Similarly, the sales made by the assessee to M/s. Kalki Trading Company were treated as unexplained cash credit under Section 68 of the Act.…

Legal Issues

• 1. Whether the addition made u/s 69C of the Act in respect of purchases made from M/s. Mahavir Prasad Suresh Kumar and M/s. Umesh Kumar Vivek Kumar was justified.
• 2. Whether the sales made to M/s. Kalki Trading Company could be treated as unexplained cash credit u/s 68 of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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