Jethmal Panchanmal Chandan vs. The Income Tax Officer

Parties Involved

Facts Summary

The assessee, Mr. Jethmal Panchanmal Chandan, filed an appeal against the order of the Commissioner of Income Tax (Appeals) dated 29/07/2019 pertaining to the Assessment Year 2011-12. The assessee was aggrieved by the enhancement of the addition of Rs.12,06,777/- made by the Assessing Officer to Rs.48,27,110/- made by the Commissioner of Income Tax (Appeals). The assessee filed the return of income on 29/09/2011 declaring a total income of Rs.3,06,050/-. The return was selected for scrutiny assessment, and during the assessment, the Assessing Officer found that the assessee was involved in taking accommodation entries in the form of bogus purchases amounting to Rs.48,27,110/-. The assessee was asked to furnish details of such purchases, but no plausible reply was received. Therefore, the Assessing Officer estimated the profit at 25% and made an addition of Rs.12,06,777/-. The assessee carried the matter before the Commissioner of Income Tax (Appeals) and reiterated that the purchases were genuine and corresponding sales had been accepted. The Commissioner of Income Tax (Appeals) enhanced the assessment to 100% of the bogus purchases amounting to Rs.48,27,110/-. The Tribunal referred to the decision of the High Court of Bombay in the case of PCIT v. Mohommad Haji Adam & Co. and confirmed the addition made by the Assessing Officer being 25% of the bogus purchases and deleted the enhancement made by the Commissioner of Income Tax (Appeals).…

Legal Issues

• 1. Enhancement of addition by the Commissioner of Income Tax (Appeals) from 25% to 100% of the bogus purchases.

Judgment Outcome

Decided in favour of Assessee.

Similar Judgements

• Deputy Commissioner of Income Tax vs. Priti Construction Tirupathi Construction Corporation Joint Venture

  Mumbai benchAY 2011-12Dismissed

• AXIS INFOLINE P. LTD. vs PRINCIPAL COMMISSIONER OF INCOME TAX

  Delhi Bench benchAY 2021-22Allowed

• Sh. Vinod Kumar, Proprietor of Vinod Enterprises Vs. Income Tax Officer, Ward-5, Karnal

  Delhi Bench benchAY 2012-13Partly Allowed

• ITA No. 5252/MUM/2024 (AY: 2011-12)

  SMC Bench, Mumbai benchAY 2011-12Dismissed

• Sh. Kapil Raj Anand Vs. DCIT

  Delhi Bench benchAY 2020-21 & 2021-22Partly Allowed

• Nissim Traders Private Limited vs DCIT, Circle 2(3)(1), Mumbai

  SMC BENCH, MUMBAI benchAY 2018-19Dismissed