Agson Global Pvt. Ltd. Vs ACIT (ITAT Delhi)
Material Facts
The assessee company and the Revenue filed cross appeals for Assessment Years (AYs) 2012-13 to 2017-18 arising from assessments made pursuant to a search conducted on 21.03.2017. AYs 2012-13, 2013-14 and 2014-15 were concluded assessments, while AYs 2015-16, 2016-17 and 2017-18 were pending on the date of search.
The Assessing Officer (AO), while framing assessments under Section 153A read with Section 143(3), made additions primarily on two issues:
- Additions under Section 68 relating to share capital/share premium and alleged commission.
- Additions relating to alleged bogus purchases by disallowing 25% of purchases.
The CIT(A) confirmed the Section 68 additions but modified the bogus purchase additions by invoking Section 145(3) and estimating profits through application of gross profit rates.
The assessee challenged the additions, while the Revenue challenged the relief granted by the CIT(A).
Procedural History
- Original assessments for AYs 2012-13 to 2014-15 had already been completed under Section 143(3).
- Search under Section 132 was conducted on 21.03.2017.
- Assessments were framed under Section 153A.
- The CIT(A) confirmed additions under Section 68 but restricted additions relating to alleged bogus purchases.
- Both sides filed appeals before the ITAT.
- The Tribunal admitted additional legal grounds challenging the CIT(A)’s invocation of Section 145(3).
Legal Issues
