Ramniklal and Sons vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Ramniklal and Sons, a partnership firm engaged in trading and manufacturing gold and diamond jewelry, filed its income return on 30.09.2010 reporting total income at Rs.16,99,510/-. The case was reopened twice for alleged bogus purchases from parties M/s. Daksh Diamonds, M/s Krishna Diam, and M/s Rajan Gems. The Assessing Officer made additions to the income of the assessee based on these alleged bogus purchases. The assessee appealed against this order, and the Commissioner of Income Tax (Appeals) dismissed the appeal. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Addition of Rs. 60,65,780/- under Sections 68 and 69C of the Income Tax Act, 1961
• 2. Disallowance of 100% of alleged bogus purchases

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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