Prime Steel Industries Private Limited vs. The DCIT, Circle, Patiala
Parties Involved
Facts Summary
The assessee, Prime Steel Industries Private Limited, is engaged in manufacturing TMT Bars and M.S. Billet. During the assessment proceedings, the Assessing Officer arrived at the figure of alleged bogus purchases to the tune of Rs.68,26,38,327/- based on information from the GST department. The assessee submitted various documents to prove the genuineness of the purchases, including tax invoices, e-way bills, GR, truck permits, and payment proofs. The assessee argued that the sales were valid and the purchases were not inflated. The Assessing Officer initially applied a profit rate of 12.5% on the alleged bogus purchases, which was later recomputed by the CIT(A) at 5.94% based on the gross profit ratio declared by the assessee.…
Decision in favour of
Partly Assessee / Partly Revenue
Legal Issues
- 1. Whether the appellate order is bad both on facts and law to the extent additions are upheld.
- 2. Whether the CIT(A) was right in law in directing the AO to recompute the disallowance in respect of bogus purchases at 5.94% of the total bogus purchase.
Judgment Outcome
Decided in favour of Partly Assessee / Partly Revenue.
Precedents Relied Upon
11 precedents cited in this judgement.
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