Murli Kumar Agrawal (HUF), Rajim vs ACIT, Circle-1(1), Raipur

Parties Involved

Facts Summary

The case involves an appeal by Murli Kumar Agrawal (HUF) against the order of the Commissioner of Income Tax, Appeal, NFAC, Delhi, for the Assessment Year 2014-15. The appeal was initially dismissed by the ITAT due to delay in filing, but later the Hon’ble Jurisdictional High Court of Chhattisgarh set aside the order and remanded the case back to the ITAT for fresh adjudication. The main issue in the appeal is regarding the estimation of profit at 25% on bogus purchases amounting to Rs. 5,40,05,710/-, which was worked out at Rs. 1,35,01,428/- and addition was made under section 69C of the Income Tax Act. The assessee argued that the issue is covered by previous decisions of the ITAT, Raipur, and requested the tribunal to adopt the same analogy. The tribunal, however, found that the assessee had failed to substantiate the authenticity of the impugned purchase transactions, and thus, the addition was upheld. The case was then remanded back to the file of the Assessing Officer for fresh adjudication.…

Legal Issues

• 1. Whether the Ld. CIT (Appeals) erred in sustaining the adhoc addition of 25% amounting to Rs. 1,35,01,428/- made by Ld. AO u/s 69C of the Act?
• 2. Whether the Ld. CIT (Appeals) erred in sustaining the adhoc addition without considering the GP earned as per the Audited Books of accounts?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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