ITO Vs Mahesh Kumar Aggarwal (ITAT Delhi)
Bogus Purchase Addition Deleted – Mere Non-Response to 133(6) Notices Not Enough
The ITAT Delhi dismissed the Revenue’s appeal and upheld the NFAC order deleting addition made by estimating net profit @8% after rejecting books u/s 145(3). The AO had treated purchases as doubtful mainly because some suppliers were non-filers, GST registrations were inactive, and certain parties did not respond to notices u/s 133(6). The Tribunal observed that the assessee had furnished purchase bills, bank statements, PAN and GST details, and payments were through banking channels; therefore, the initial onus stood discharged. Mere non-response by suppliers or suspicion about vehicle capacity without conducting further enquiry could not justify rejection of books or estimation of profit. Since sales were accepted and no evidence of bogus purchases was brought on record, deletion of addition of ₹3.97 crore was confirmed and Revenue’s appeal was dismissed
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by the Revenue is directed against the order of the National Faceless Appeal Centre Delhi [hereinafter referred to as “Ld. NFAC)”] vide order dated 08.04.2025 pertaining to A.Y. 2021-22.
2. This appeal is filed with the delay of 95 days. An application for condonation of delay is filed by the revenue, in which it is stated that delay in filing the appeal was purely unintentional and occurred due to genuine and unavoidable circumstances due to heavy workload. The Revenue has shown the sufficient cause not to filing the appeal within time, therefore, the delay is condoned and appeal is admitted for adjudication.
