Tax on Inflated Purchases

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH ‘F’, NEW DELHI
BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER
AND
SH. KUL BHARAT, JUDICIAL MEMBER
(THROUGH VIDEO CONFERENCING)

ITA No.7144 & 7145/Del/2018
Assessment Year: 2015-16 & 2016-17

DCIT
Central Circle-14
New Delhi

vs

R B Farms and Estates
Pvt. Ltd. 2686, Kashmere
Gate, New Delhi
PAN No. AACCR7224E

Appellant by Sh. I. P. S. Bindra, CIT
Respondent by Sh. Ashwani Kumar, CA

Date of hearing: 21/10/2021
Date of Pronouncement: 21/10/2021
ORDER

ITA No. 7144/Del/2018 and ITA No.7145/Del/2018 are two separate appeals by the revenue preferred against a consolidated order of the CIT(A)-27, New Delhi dated 13.08.2018 pertaining to A.Y.2015-16 and 2016-17.

2. Briefly stated the facts of the case are that a search and seizure operation was carried out on AMP group and other related cases on 16.09.2015. Search u/s. 132 (1) of the Act was interlia conducted at premises of the assessee.

3. In its reply the assessee contended that the unsecured loan has been met out of the fund/ cash received on account of bogus/ inflated purchase done by M/s. Anand Motors product Pvt. Ltd. The assessee pointed out that an application is filed before the Income Tax Settlement Commission. The AO was of the opinion that application of M/s. Anand Motors Product Private Limited (AMP Private Limited) is still pending for adjudication. The AO concluded by holding that the source of unsecured loan is remained unexplained and accordingly made addition of Rs.10,37,50,000/- in A.Y.2015-16 and Rs.59.40 lacs in A.Y. 2016-17.

4. Considering the totality of the facts we do not find any reason to interfere with the findings of the CIT(A) both the appeals by the revenue are dismissed.Decision announced in the open court in the presence of  both the representatives on 21.10.2021.

Please find attached the enclosed file for the full judgement.