Sh. Manish Khandelwal Vs. Income Tax Officer

Parties Involved

Facts Summary

The case involves an appeal by Sh. Manish Khandelwal against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (CIT(A)/NFAC), Delhi, which disallowed certain expenditures as bogus under section 69C of the Income-tax Act, 1961. The assessee, engaged in trading raw materials like iron and steel, had expenditures amounting to Rs.1,17,87,527/- in the assessment year 2011-12, which were treated as bogus by the lower authorities. The assessee challenged this disallowance, arguing that the expenditures were legitimate. The Tribunal noted that the assessee's sales were not questioned, and recent judicial precedents on bogus purchases had divergent views.…

Legal Issues

• 1. Whether the expenditures of Rs.1,17,87,527/- by the assessee towards purchases should be treated as bogus under section 69C of the Income-tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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