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Judgment
PER SATBEER SINGH GODARA, JM
This Revenue’s appeal for assessment year 2021-22, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1083380302(1), dated 07.12.2025 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
Learned departmental representative vehemently argues during the course of hearing that the CIT(A)/NFAC has erred in law and on facts in deleting the Assessing Officer’s action disallowing the assessee’s entire bogus purchases of Rs.7,03,35,200/- u/s 69C sourced from Ms. Reena and M/s. Nativeroots Commtrade Pvt. Ltd. as no substantial documents have been brought on record regarding the above bogus purchases.
That being the clinching factual position, learned counsel appearing for both the parties could hardly dispute that various judicial precedents (2025) 173 taxmann.com 592 (Guj.) Ravjibhai Becharbhai Dhamelia vs. ACIT; (2024) 160 taxmann.com 110 (Bom) PCIT Vs. Hitesh Mody (HUF), (2024) 160 taxmann.com 93 (Del) PCIT Vs. Forum Sales (P) Ltd.; (2025) 172 taxmann.com 283 (Bom) PCIT Vs. Kanak Impex (India) Ltd; (2025) 178 taxmann.com 424 (Del. – Trib.) DCIT Vs. Kohinoor Foods Ltd.; and (2025) 177 taxmann.com 836 (Delhi-trib.) DCIT Vs. Tirupati Matsup (P.) Ltd. have recently decided the instant issue of bogus purchases with divergent opinions as well. It is thus deemed appropriate in the larger interest of justice that a lumpsum addition of Rs.25 lakhs in the assessee’s hands out of the total bogus purchases of Rs.7,03,35,200/-, would be just and proper with a rider that the same shall not be treated as a precedent. Necessary computation shall follow as per law.
This Revenue’s appeal is partly allowed.