ITA No.987/Del/2025 The Silk Factory (AY: 2022-23)
Case No: ITA No. 987/Del/2025
Court: INCOME TAX APPELLATE TRIBUNAL “E” BENCH, DELHI
Date: 1/9/2026
Parties Involved
appellantITO, Ward-50(1)
respondentThe Silk Factory
Facts Summary
The assessee, The Silk Factory, a firm involved in trading of fabrics, was selected for scrutiny under CASS because it had shown purchases from persons who were non-filers of Income Tax Returns compared to their turnover in GST Return. The Assessing Officer (AO) found that the assessee had shown purchases of fabrics from 9 suppliers, totaling 21.83 Crores, which was suspicious as all suppliers were non-filers except two. Most suppliers had their GST registration either suspended, cancelled, or w…
Decision in favour of
Partly Assessee / Partly Revenue
Legal Issues
- 1. Whether the entire amount of bogus purchases should be disallowed or only a percentage.
Precedents Relied Upon
8 precedents cited in this judgement.