Sh. Vinod Kumar, Proprietor of Vinod Enterprises Vs. Income Tax Officer, Ward-5, Karnal

Parties Involved

Facts Summary

The assessee, Sh. Vinod Kumar, Proprietor of Vinod Enterprises, filed an appeal against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (CIT(A)/NFAC), Delhi, which enhanced the disallowance for bogus purchases from 5% to 100% of the purchase amount. The original Assessing Officer (AO) had disallowed 5% of the alleged bogus purchases amounting to Rs. 6,66,235/-. The CIT(A)/NFAC enhanced this disallowance to 100% based on the findings that the purchases were bogus and the assessee failed to provide evidence of genuine transactions. The assessee contested this enhancement, arguing that the purchases were made through cheques and supported by bills and delivery challans.…

Legal Issues

• 1. Whether the disallowance for bogus purchases should be 5% or 100% of the purchase amount.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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