Patel Kenwood Pvt. Ltd. vs. ITO

Parties Involved

Facts Summary

The assessee, M/s. Patel Kenwood Pvt. Ltd., a company engaged in the business of imported wood and Eco-friendly particle boards, filed its Return of Income for the Assessment Years 2017-18 and 2018-19. The Assessing Officer noticed that the purchases made from M/s. Laxmi Enterprises were treated as bogus transactions and added as income. The assessee also paid rent for three flats in Surat, which the Assessing Officer disallowed as unreasonable. The assessee appealed against these orders by the Commissioner of Income Tax (Appeals). The Tribunal analyzed the evidence and submissions made by both parties and concluded that the Assessing Officer and the Commissioner of Income Tax (Appeals) made the additions without proper verification of facts.…

Legal Issues

• 1. Disallowance of Rs.43,95,474/- on account of bogus purchase.
• 2. Disallowance of Rs.10,09,875/- on account of rent paid for furnished residential accommodation.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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