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Judgment
The Revenue’s instant miscellaneous application M.A. No. 412/Del/2025 filed under section 254(2) of the Act seeks to recall the tribunal’s order dated 14.05.2025 dismissing its corresponding main appeal ITA No.1038/Del/2025 as involving tax effect of less than Rs.60 lakhs as per the CBDT’s circular no. 9/2024, dated 17.09.2024.
Heard both the parties. Case files perused.
Learned departmental representative’s case during the course of hearing is that the instant main appeal herein is covered under the exception clauses 3.1 and 3.2 of the CBDT’s instructions No. 5/2024, dated 15.03.2024 since the purchases in issue have been treated as bogus accommodation entries. The assessee fairly concedes the same. I thus treat the tribunal’s impugned order dated 14.05.2025 as apparent mistake on record. The same is recalled in very terms. This Revenue’s miscellaneous application M.A. No.412/Del/2025 stands accepted.
Now comes the Revenue’s main appeal ITA No. 1038/Del/2025 for the purpose of its afresh appropriate adjudication. Learned departmental representative vehemently argues that the CIT(A)/NFAC has erred in law and on facts in reversing the Assessing Officer’s action disallowing the assessee’s bogus purchases of Rs.3,18,852/- sourced from M/s. Shree Shyam Trading Co. representing accommodation entries.
That being the clinching factual position, the Revenue could hardly dispute that various recent 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 views as well. It is thus deemed appropriate in the larger interest of justice that a lumpsum disallowance @ 5% of the assessee’s alleged bogus purchases amounting to Rs.3,18,852/- 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 application M.A. No.412/Del/2025 is allowed and its appeal ITA No.1038/Del/2025 is partly allowed. A copy of this common order be placed in the respective case files.