Shagun Goel vs Income Tax Officer

This assessee’s appeal for Assessment Year 2019-20 arises against the C IT(A)/NFAC, De lhi’ s DIN & order No. ITBA/NFAC/S/250/2025-26/1080482131(1) dated 09.09.2025, in proceed ings u/s 147 of the Income Tax Act, 1 961 (in short “the Act”).

Heard both the p arties at length. Case file perused.

It transpires during the course of hearing that both the learned lower authorities have disallo wed the assessee’s claim of Rs.23,45,100/- as his bogus purchases so urced from Mr. Nitin, prop. of M/s Kamal Ente rprises, in assessment order dated 19.02.2025, as upheld in the lower appellate discussio n.

Learned departmental representative could hardly dispute that in this factual backdrop that the assessee’s corresponding business sales have nowhere been disputed and his books of accounts maintained all along have also no t been rejected. The fact also re mains that it was the assessee’s bounden duty only to plead and prove his impug ned purchase s u/s 37 of the Act as wholly and exclusively incurred for the p urpose of the business. Be that as it may, it is deemed appropriate in the larger interest of justice that a lump sum disallowance @5% of the impugned bogus purchase s wo uld be just and proper with a rider that the same shall no t be treated as a precedent. Necessary computation shall fo llow as per law.

This assessee’s appeal is partly allowed.