Hemang Praveen Chandra Shah vs. ITO-42(1)(2)

Parties Involved

Facts Summary

The appellant, Hemang Praveen Chandra Shah, filed an appeal against the addition of bogus purchases confirmed by the Commissioner of Income Tax (Appeals). The Assessing Officer had received information that the appellant obtained bogus bills to the extent of Rs. 10,82,380/- from three parties. The appellant produced bank accounts to show payments were made to these parties. However, one party denied issuing any bills to the appellant. The Assessing Officer added the entire purchases from these three parties. The Commissioner of Income Tax (Appeals) confirmed the addition to the extent of credits standing as balance at the end of the financial year. The appellant argued that there was no basis for confirming 43% of total alleged bogus purchases. The appellant agreed for 12.5% as extra profit on these purchases to put an end to litigation.…

Legal Issues

• 1. Whether the learned Commissioner of Income Tax (Appeals) is correct in confirming alleged bogus purchases of Rs. 4,62,588/- out of total bogus purchases of Rs. 8,68,200/-

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

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