Kaushal Pravinkumar Shah vs The ITO, Ward-3(3)(2) Ahmedabad

Parties Involved

Facts Summary

Kaushal Pravinkumar Shah, the appellant, filed an appeal against the order dated 27-11-2024 passed by the National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2018-19. The grounds of appeal were that the learned Commissioner of Income Tax (Appeals) had grievously erred in dismissing the appeal and confirming the assessment order with an addition of Rs. 69,22,150/-. The Assessing Officer observed that the assessee had taken accommodation entries through bogus invoices from M/s. S.K. Enterprises related to GST aggregated to Rs. 17.59 crores from buyers without actual movement of goods. The assessee's case was reopened under section 147, and a notice under section 148 was issued on 05-04-2022, which was responded to on 16-11-2022. The Assessing Officer held that the purchase of Rs. 69,22,150/- should be treated as bogus purchases and disallowed the same as unexplained expenditure under section 69 of the Act, thereby taxing the same under section 115BBE Act.…

Legal Issues

• 1. Whether the learned CIT(A) NFAC grievously erred in dismissing the appeal and confirming the assessment order with addition of Rs. 69,22,150/-.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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