Nissim Traders Private Limited vs DCIT, Circle 2(3)(1), Mumbai

Parties Involved

Facts Summary

This appeal by the assessee, Nissim Traders Private Limited, is directed against the assessment order of the ld. CIT(A)/NFAC dated 19.08.2025 for Assessment Year (AY) 2018-19. The Revenue raised grounds of appeal concerning the restriction of addition on account of bogus purchases from Rs. 11,65,922/- to Rs. 64,125/- by applying a gross profit rate of 5.5%. The purchases in question were made from M/s Lakshin Infradev Pvt. Ltd. and M/s Nutan Enterprises, which were deemed non-genuine and devoid of actual delivery of goods based on credible information from the GST Department and Search & Survey findings at M/s Nyles Sales Agencies Pvt. Ltd. The assessee showed purchases from hawala dealers, and the total purchases from the two entities aggregated to Rs. 11,65,922/-. The assessing officer disallowed 100% of such purchases, but the ld. CIT(A) restricted the addition to 5.50% of the purchases.…

Legal Issues

• 1. Whether the ld. CTT(A) erred in restricting the addition on account of bogus purchases from Rs. 11,65,922/- to Rs. 64,125/-.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• ITA No. 5252/MUM/2024 (AY: 2011-12)

  SMC Bench, Mumbai benchAY 2011-12Dismissed

• Luvkesh Textile Industries Pvt. Ltd. vs. Deputy Commissioner of Income Tax

• Sh. Rajesh Kumar Vs. Income Tax Officer, Ward-34(5), Delhi

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

  SMC Bench, Mumbai benchAY 2009-10Partly Allowed

• Kaushal Pravinkumar Shah vs The ITO, Ward-3(3)(2) Ahmedabad

  Ahmedabad bench

• Bhansali Udyog Pvt. Ltd. Vs. Income Tax Officer

  Delhi Bench benchAY 2018-19Partly Allowed