Vertex Chemicals Vs. ITO, Ward-12(2)(1)

Parties Involved

Facts Summary

Vertex Chemicals, a partnership firm, filed an income return for the Assessment Year 2011-12 declaring a total income of Rs. 7,96,770/-. The case was selected for scrutiny, and the Assessing Officer (AO) issued notices under section 133(6) of the Income Tax Act, 1961 to 20 parties to verify the genuineness of purchases. The AO alleged that purchases from four parties were bogus and rejected the books of accounts, making an addition of Rs. 69,35,217/- based on a gross profit percentage. The assessee appealed against the order of the Commissioner of Income Tax (Appeals) confirming the AO's decision.…

Legal Issues

• 1. Whether the appellate order is bad, illegal, and without jurisdiction?
• 2. Whether the AO erred in not granting proper opportunity of being heard?
• 3. Whether the AO erred in rejecting the books of accounts?
• 4. Whether the AO erred in making addition on the basis of estimation of gross profit?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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