Smt. Meena Sundrani, L/H of Late Shri Karam Chand Sundrani, Rajim vs ITO-1(1), Raipur

Parties Involved

Facts Summary

The assessee, Smt. Meena Sundrani, filed an appeal against the order of the Commissioner of Income Tax (Appeal) and the Income Tax Officer, Ward-1(1), Raipur, regarding the assessment year 2016-17. The assessee, Mr. Karam Chand Sundrani, had filed his return of income declaring a total income of Rs. 4,66,660/-. The case was selected for scrutiny assessment, and notices were issued to the assessee. During the assessment proceedings, it was observed that the assessee had made purchases of paddy/broken rice from various parties within the state. The Assessing Officer made an addition of Rs. 11,10,036/- (25% of Rs. 44,40,144/-), considering the purchases as bogus. The assessee appealed against this order, but the appeal was dismissed by the Commissioner of Income Tax (Appeal) as the assessee did not respond to the notices. The assessee then filed an appeal before the ITAT, Raipur.…

Legal Issues

• 1. Whether the addition made by the Assessing Officer for bogus purchases is arbitrary and baseless.
• 2. Whether the assessee was validly served with the notices by the Commissioner of Income Tax (Appeal).

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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