Case Law Details
Kalu Singh Vs ITO (ITAT Bangalore)
Introduction: The recent order by the Income Tax Appellate Tribunal (ITAT) Bangalore has stirred attention in the case of Kalu Singh Vs ITO. The appeal is against the order passed by the NFAC under section 250 of the Income-tax Act, 1961, for the assessment year 2018-19, dated 30.8.2023. The appellant challenges the order on grounds of non-consideration of material, lack of natural justice, and disputing the characterization of purchases as bogus.
Detailed Analysis: The appellant raised multifaceted grounds against the lower authorities, emphasizing non-consideration of material and absence of principles of natural justice. Key contentions include the alleged error in concluding purchases of Rs. 9,99,250 as bogus and disallowing the amount under section 69C of the Act.
The ITAT’s observation highlights the need for detailed consideration of the evidence provided by the appellant, such as ledger statements, purchase invoices, GST records, and bank statements. The tribunal questioned the basis of the alleged bogus purchases and the absence of specific information from the income tax department.
In the course of the proceedings, the draft assessment order proposed disallowance of the entire sum of Rs. 9,99,250 without proper computation of tax liability. The subsequent assessment order confirmed this disallowance, charging it to tax under section 115BBE of the Act, accompanied by substantial interest.
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