Mohan Singh vs. ITO

Parties Involved

Facts Summary

The assessee, Mohan Singh, filed an appeal against the order of the ld. CIT(A) dated 21.12.2023 for the assessment year 2018-19. The assessee, who is in the business of trading agricultural goods, had made purchases totaling Rs. 1,72,21,00,752/- from suppliers who were either non-filers or had filed non-business ITR. The assessee was requested to substantiate these purchases, especially those from unregistered parties, but failed to provide any proof or evidence. Consequently, the Assessing Officer (AO) made an addition of Rs. 26,65,91,095/- on account of unexplained purchases. The assessee filed an appeal before the ld. CIT(A), which was dismissed ex-parte due to the assessee's failure to respond to notices issued by the CIT(A). The assessee then appealed to the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the AO erred in passing an ex-parte assessment under section 143(3) read with section 144B of the Income Tax Act, 1961.
• 2. Whether the AO erred in treating the entire purchase from agriculturists as unverifiable and adding it to the total income.
• 3. Whether the assessee should be given an opportunity to submit evidence concerning the issue in question.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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