Hassan Laxman Rao Vidya Vs ITO (ITAT Bangalore)
The assessee appealed against the order dated 07.02.2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi under Section 250 of the Income-tax Act, 1961 for Assessment Year 2018-19. The appeal challenged, among other grounds, the addition of Rs. 1,30,05,200 on account of alleged bogus purchases, the ex parte appellate order, and alleged violations of Sections 250(4) and 250(6) and the principles of natural justice.
The assessee had filed the return of income on 31.10.2018 declaring total income of Rs. 15,69,810. During scrutiny assessment, the Assessing Officer received information from the Investigation Wing alleging that the assessee had generated fictitious bills/invoices along with e-way bills without actual movement of goods or services. Notices under Sections 143(2) and 142(1) were issued seeking information. The assessee furnished part of the information and sought time to submit the remaining documents. Despite a further opportunity and a show cause notice regarding purchases of Rs. 1,30,05,200 from ARS Enterprises and Suman Fin Stock, the assessee did not furnish documentary evidence such as bills, receipts and vouchers. Consequently, by order dated 24.09.2021 under Section 143(3) read with Section 144B, the Assessing Officer treated the purchases as bogus and added the amount to the assessee’s income.
