Maharashtra Corporation Limited Vs. ITO Ward 4(2)(1)

Parties Involved

Facts Summary

The assessee, Maharashtra Corporation Limited, is a company engaged in trading textile goods. It filed its return of income for A.Y. 2017-18 declaring a total income of Rs. 98,130/-. Based on information received by the Assessing Officer regarding transactions involving purchases from M/s Indo Count Industries Limited without actual delivery of goods, reassessment proceedings were initiated. The Assessing Officer concluded that the purchases were bogus and disallowed the entire amount under section 69C of the Income-tax Act, 1961. The assessee appealed this decision before the Commissioner of Income-tax (Appeals), who upheld the addition. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the reopening of assessment and the assessment as completed is illegal, invalid, without jurisdiction, on borrowed satisfaction, without independent application of mind, violative of the principle of natural justice and which deserves to be quashed.
• 2. Whether the AO grossly erred in treating the purchases as non-genuine and making the addition on mere assumptions, presumptions, surmises and conjectures, without giving opportunity of cross-examination.
• 3. Whether the addition made by the AO is grossly illegal as it was made without objectively and subjectively disproving the evidences filed by the assessee.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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