Niraj Pravinchandra Doshi Vs ITO,Ward-19(2)(4), Mumbai

Parties Involved

Facts Summary

The assessee, Niraj Pravinchandra Doshi, a trader of ferrous and non-ferrous metals, had his case reopened based on information from DGIT (Inv.) alleging that he was a beneficiary of bogus purchases from six parties. The purchases from these parties, aggregating to Rs. 313 crores, were treated as bogus. The assessee provided confirmations, ledger accounts, purchase invoices, delivery challans, and banking channel payments to substantiate his claims. The assessing officer added Rs. 39,16,983/- as 12.5% of the alleged bogus purchases, which was confirmed by the CIT(A). The assessee argued that the addition was without basis and cited a previous decision where a similar disallowance was restricted to 5.00%.…

Legal Issues

• 1. Whether the reassessment proceedings were initiated correctly under section 147.
• 2. Whether the assessing officer violated the principles of natural justice by not providing an opportunity for cross-examination.
• 3. Whether the assessment order was passed without considering the appellant's submissions and without giving a personal hearing.
• 4. Whether the addition of Rs. 39,16,983/- on account of bogus purchases was justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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