Mala Singh Vs. Income Tax Officer, Kolkata

Parties Involved

Facts Summary

The assessee, Mala Singh, proprietor of M/s. Shiv Shakti Enterprise, filed her return of income for AY 2018-19 declaring a total income of ₹15,73,144/-. The case was selected for scrutiny under Computer Assisted Scrutiny Selection (CASS) to verify purchases. Notices u/s 143(2) and 142(1) of the Act were issued. The Sale amount furnished by the supplier did not match with the purchase amount shown by the assessee, resulting in a difference of ₹1,28,84,063/-. This difference was treated as unexplained expenditure u/s 69C of the Act and added to the total income of the assessee. Additionally, a sum of ₹51,536/- being Gross Profit earned on out-of-books purchases of ₹1,28,84,063/- was also added to the total income. The Assessing Officer assessed the total income of the assessee at ₹1,43,54,900/- u/s 143(3) read with section 144B of the Act. Aggrieved with the assessment order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals)-NFAC, Delhi, who dismissed the appeal.…

Legal Issues

• 1. Erroneous Assessment Order
• 2. Unjustified Addition under Section 69C
• 3. Non-Application of Mind by AO
• 4. Baseless Addition of Gross Profit
• 5. Violation of Natural Justice

Judgment Outcome

Decided in favour of Assessee.

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