Karnimata Cold Storage Ltd. vs. ACIT, Circle-38, Midnapur

Parties Involved

Facts Summary

The assessee-company, Karnimata Cold Storage Ltd., is engaged in the business of cold storage. For the assessment year 2014-15, the company filed its return of income declaring a total loss of Rs.3,31,35,426/-. The Assessing Officer received information that the assessee had received bogus bills amounting to Rs. 45,00,962/- during the financial year 2013-14 from M/s. NKR Enterprises and M/s. Sourav Enterprises. A survey operation was conducted, and a statement was recorded from Shri Sanjay Dhanuka admitting to making payments through RTGS/Cheques to different accommodation entry operators on account of bogus bill purchases. The Assessing Officer reopened the assessment and determined the total loss of the assessee at Rs. 2,86,34,500/-. The assessee filed an appeal before the CIT(A), which was dismissed. The assessee then appealed to the Tribunal.…

Legal Issues

• 1. Whether the addition made by the Assessing Officer based on the information of bogus bills is justified?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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