Nitin Suryakant Chauhan vs. Income Tax Officer

Parties Involved

Facts Summary

The appellant, Nitin Suryakant Chauhan, filed an income tax return for the assessment year 2011-12 declaring a total income of Rs. 3,13,333/-. Based on information from the Investigation Wing of the Department, the case was reopened under section 147 of the Income Tax Act, 1961. Notices under sections 148 and 142(1) of the Act were issued and served on the assessee, but the assessee failed to respond. The case was reassessed under sections 144 and 147 of the IT Act, 1961, resulting in an addition of Rs. 21,66,814/- on account of disallowance of bogus purchases. The assessee filed an appeal against the reassessment order, which was dismissed by the Commissioner of Income Tax (Appeals). The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the Commissioner of Income-tax (Appeal) erred in upholding the action of the Assessing Officer in disallowing purchases amounting to Rs. 2,166,814/- without making any independent inquiry by treating the purchases as bogus in nature on mere suspicion that the parties were listed on the website of MVAT Department as Suspicious dealers, and without appreciating the fact that the material sourced was in fact sold during the trading process.
• 2. Whether the Commissioner of Income-tax (Appeal) erred in upholding the action of the Assessing Officer in not appreciating the fact that what could at the best be added was the difference in applicable gross profit made on the purchases made.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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