Saket Agarwal vs. ITO

Parties Involved

Facts Summary

Saket Agarwal, engaged in the business of purchasing and selling precious and semi-precious stones, filed an appeal against the Income Tax Officer's (ITO) order that added Rs. 3,17,55,786/- as unproved sundry creditors under section 41(1) of the Income Tax Act, 1961. The ITO had issued notices to sundry creditors, which were not responded to, leading to the addition. Agarwal argued that the creditors were genuine and payments were made through account payee cheques. The Income Tax Appellate Tribunal (ITAT) dismissed Agarwal's appeal, but the assessee appealed to the higher court.…

Legal Issues

• 1. Addition of Rs. 3,17,55,786/- as unproved sundry creditors under section 41(1) of the Income Tax Act, 1961.
• 2. Initiation of penalty proceedings under section 271(1)(c) of the Act.

Judgment Outcome

Decided in favour of Assessee.

Similar Judgements

• Deputy Commissioner of Income Tax- Central – 1.1, Mumbai Vs. Rajendra S. Karnavat

  Mumbai bench

• M/s Tanmay International Vs. Income Tax Officer, Ward 28(5), Delhi

  Delhi Bench benchAY 2012-13Allowed

• Hindustan EPC Company Ltd Vs. DCIT

  Delhi Bench benchAY 2017-18Allowed

• M/s. Sri Varalaxmi Projects Private Limited vs. Income Tax Officer

  Hyderabad bench

• Elite Packaging vs Income Tax Officer Ward 17(3)(1)

  Mumbai Bench benchAY 2020-21Allowed

• Bhawani Apartment Pvt. Ltd. Vs. DCIT, Cen. Cir. 3(2)

  Kolkata benchAY 2018-19Allowed