ITA No.3988/Mum/2025

Parties Involved

Facts Summary

The assessee, M/s. Everest Food Products Pvt. Ltd., originally an erstwhile partnership firm named M/s. S Narendra Kumar and Co. (SNC), was converted into a private limited company on 12.05.2020. The company is engaged in manufacturing, trading, and selling various types of masala and spices under the brand name 'Everest'. The assessee filed its return of income declaring total income at Rs.513,06,61,331/- and later filed a revised return declaring total income at Rs.517,71,99,790/-. The case was selected for scrutiny under CASS due to substantial purchases from suppliers who were either non-filers or had filed non-business ITR or reflected substantially lower turnover in ITR. The Assessing Officer passed an assessment order determining the total income at Rs.543,27,69,500/- after adding Rs.25,55,69,713/- as gross profit on alleged bogus purchases. The assessee appealed before the first appellate authority, who allowed the appeal, and the Revenue is now appealing before the Tribunal.…

Legal Issues

• 1. Whether the Ld. CIT(A) has erred in deleting the addition of Rs.25,55,69,713/- made by the Ld. AO towards alleged non-genuine purchases made by the assessee company with four parties?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Income Tax Officer Vs. Mahesh Kumar Aggarwal

  Delhi Bench ‘A’, New Delhi benchAY 2021-22Dismissed

• ITA No. 955/Del/2024

  Delhi Bench ‘G’, New Delhi benchAY 2017-18Dismissed

• ITA No.987/Del/2025 The Silk Factory (AY: 2022-23)

• Ashriya Consultive (OPC) Pvt. Ltd. Vs ITO

  Delhi Bench benchAY 2022-23Allowed

• ITO vs. Ramlal Manekchand HUF

  Ahmedabad bench

• NITIN KAHER, VS. AO, WARD 44(6)

  Delhi Bench ‘A’ : New Delhi benchAY 2020-21Partly Allowed