What are the key legal issues in Orient Craft Limited Vs. The Dy, C.I.T?

1. Addition of Rs. 4,81,28,745/- on account of bogus expenses 2. Addition of Rs. 2,90,78,602/- on account of bogus expenses

Orient Craft Limited Vs. The Dy, C.I.T

Case No: CO No. 111/DEL/2017, ITA No. 3308/DEL/2019, ITA No. 3309/DEL/2019, ITA No. 5034/DEL/2019, ITA No. 5035/DEL/2019, ITA No. 5036/DEL/2019

Court: Income Tax Appellate Tribunal, Delhi ‘F’ Bench

Bench: Delhi ‘F’ Bench

Date: 2/20/2026

Parties Involved

appellantOrient Craft Limited

respondentThe Dy, C.I.T

Facts Summary

The appeals and cross objections pertain to the assessment years 2010-11, 2011-12, and 2012-13. The main issue revolves around the addition of expenses claimed by the assessee for job work done by various parties, which the Revenue alleges to be bogus. The assessee contends that these parties are genuine and the expenses are valid.…

Legal Issues

1. Addition of Rs. 4,81,28,745/- on account of bogus expenses
2. Addition of Rs. 2,90,78,602/- on account of bogus expenses
3. Disallowance of bogus purchases of Rs 2,81,57,892/-
4. Disallowance of Rs.29,21,04,903/- being loss on account of fire
5. Addition of Rs. 38,43,612/- being on account of income tax refund
6. Addition of Rs. 5,48,51,943/- on account of bogus expenses

2 further legal issues analysed in the full judgement.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

4 precedents cited in this judgement.