Sunrise Structural & Engineering Private Limited Vs ACIT/DCIT (ITAT Nagpur)
Whether, the addition on account of alleged bogus purchases could be sustained and the provisions of section 69C r.w.s. 115BBE could be invoked, as well as whether reopening under section 148 was valid, merely on the basis of information received from the Investigation Wing/DGGI, despite the assessee having furnished complete documentary evidences establishing genuineness of purchases and corresponding sales.
In the case of Sunrise Structural & Engineering Pvt. Ltd. vs ACIT (ITA No. 167/NAG/2025, order dated 10.04.2026), the assessee, engaged in trading of iron and steel items, had made purchases from a party alleged to be a bogus entity as per DGGI information. The assessee had furnished complete evidences including purchase invoices, bank statements evidencing payments through banking channels, GST returns, e-way bills, transportation documents, stock records and confirmation from the buyer to whom such goods were sold. The sales corresponding to such purchases were not disputed by the department.
The Assessing Officer, however, relying solely on the information received from DGGI and reversal of input tax credit, treated the entire purchases as bogus and made addition under section 69C r.w.s. 115BBE. The Ld. CIT(A) upheld the reopening as well as the addition by relying upon external information, investigation reports and alleged non-genuineness of the supplier, without bringing any independent adverse material on record against the assessee.
