LDM Agro Foods Pvt. Ltd vs DCIT

Parties Involved

Facts Summary

The assessee, LDM Agro Foods Pvt. Ltd, filed its return for the Assessment Year 2018-19 declaring an income of Rs. 16,40,510/-. Subsequently, the Assessing Officer (AO) issued a notice under section 148A(b) alleging bogus purchases amounting to Rs. 1,20,25,868/- from entities Madan Lal Madho Prasad and Kalki Trading Company. No response was received to the show cause notice, leading the AO to pass an order under section 148A(d) and subsequently issue a notice under section 148. The assessment was finalized with an addition of Rs. 1,24,89,146/- on account of disallowance of bogus purchases from M/s Om Trading Co. under section 37(1) of the Income Tax Act, 1961.…

Legal Issues

• 1. Whether the CIT(A) erred in upholding the addition of Rs. 1,24,89,146/- and deciding the appeal ex-parte.
• 2. Whether the AO was justified in issuing the Notice u/s 148A(b) and passing the Order u/s 148A(d) without furnishing the information or material forming the basis of the reassessment proceedings to the Appellant Company.
• 3. Whether the initiation of re-assessment proceedings was based on borrowed satisfaction and lacked tangible adverse material.
• 4. Whether the disallowance of Rs. 1,24,89,146/- made u/s 37(1) of the Income Tax Act, 1961 on the alleged ground of non-genuine purchases was justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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