Revenue vs. Chogaram Hiramji Dewasai

Parties Involved

Facts Summary

The assessee, Chogaram Hiramji Dewasai, filed his return of income for the relevant year on 30.09.2011, declaring a total income of Rs. 7,16,250/-. The case was reopened under section 147 of the Income Tax Act, 1961, and a notice under section 148 was issued on 08.10.2014. The Assessing Officer (AO) believed that the assessee was one of the beneficiaries of bogus bills in the form of accommodation entries received from various parties amounting to Rs. 69,16,717/-, thus, certain income has escaped assessment. The AO added 25% of the alleged non-genuine purchases to the assessee's income. The assessee appealed before the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, who deleted the addition. The revenue then appealed to the ITAT.…

Legal Issues

• 1. Whether the addition of Rs. 17,29,179/- made by the AO was justified.
• 2. Whether the assessee provided sufficient evidence to prove the genuineness of the purchases.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Santosh Laujari Gupta Vs ITO – 33(3)(3)

  SMC Bench, Mumbai benchAY 2009-10Partly Allowed

• Mamraj Aggarwal Vs. ITO Ward- 47 (1), Delhi

• S R Jewels vs. Income Tax Officer

  Mumbai “SMC” Bench : Mumbai benchAY 2009-10Partly Allowed

• Dhar & Company Pvt. Ltd. Vs. ITO Wad

  Kolkata benchAY 2011-12Partly Allowed

• Chander Bhan Yogesh Kumar Vs. Principal Commissioner of Income Tax, Delhi-10

  Delhi Bench 'C', Delhi benchAY 2018-19Allowed

• M/s Shroff Tradelink Pvt. Ltd. vs. The Income Tax Officer

  Kolkata Bench benchAY 2014-2015 & 2015-2016Allowed