Laxmanaram Ganchi Vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Laxmanaram Ganchi, filed his return of income for the assessment year 2019-20 on 30.10.2019, declaring total income of ₹9,23,960. The case was reopened and a notice under section 148 of the Income Tax Act was issued, alleging that the assessee had entered into purchase transactions of ₹36,12,300 with M/s. Shivay Trade Impex, a concern involved in fraudulent input tax credit activities. The assessee claims that the email address and mobile number registered on the income tax portal belonged to his erstwhile tax consultant, who failed to inform him about the pending assessment proceedings. The assessment was completed ex parte under section 147 read with sections 144 and 144B of the Act, wherein the Assessing Officer treated the impugned purchases as bogus and made an addition of ₹36,12,300 under section 69C of the Act. The assessee became aware of the assessment proceedings only upon receipt of the notice of demand dated 01.01.2025 and filed an appeal before the learned Commissioner of Income Tax (Appeals) on 21.01.2025, which was dismissed solely on the ground of limitation.…

Legal Issues

• 1. Whether the delay of 295 days in filing the appeal before the learned CIT(A) constitutes sufficient cause for condonation.
• 2. Whether the addition of ₹36,12,300 on account of alleged bogus purchases is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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