IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘E’ NEW DELHI)

BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER ITA No. 3454/DE/2025 (A.Y. 2018-19)

ORDER PER YOGESH KUMAR, U.S. JM:

The present appeal is filed by the Assessee against the order of the Commissioner of Income Tax (Appeals)-30, New Delhi [‘Ld. CIT(A)’ for short] dated 31/03/2025 pertaining to Assessment Year 2018-19.

2. The grounds of Appeal are as under:-

1. That on facts and circumstances of the case, the Ld. CIT(A) has erred in law as well as on facts in not quashing the assessment order dated 31.03.2023 passed under section 147 r.w.s 144B by Ld.AO, which is beyond jurisdiction, bad in law and void ab initio. 2. The Ld. CIT(A) has erred in law and on facts in upholding the validity of reassessment proceedings initiated under section 147 of the Act, despite the absence of any fresh tangible material or valid "information" as required under section 148 and Explanation 1 thereto, as the entire reopening was based on a mere borrowed satisfaction and mechanical reproduction of findings of the Investigation Wing without independent application of mind by the Assessing Officer (AO).

3. That the Ld.CIT(A) has erred in law and on facts in not being able to establish any live link/nexus between the information provided and the allegation of income escaping assessment as there is in effect no information suggesting escapement of income, rendering the entire reassessment proceedings bad in law.

4. That on the facts and circumstances of the case, the reassessment proceedings initiated are bad in law as the notice under section 148 of the Act dated 25.03.2022 was issued by the Jurisdictional Assessing Officer in violation of provisions of section 151A of the Act, read with Notification No. 18/2022 dated 29.03.2022, which should have been issued by National Faceless Assessment Centre under e-Assessment of Income Escaping Assessment Scheme, 2022.

5. That the CIT(A) has erred on facts and in law in confirming the addition of Rs. 11,05,348/ by estimating 2% commission on alleged bogus sales of Rs. 5,52,67,414/- to M/s Veekay Enterprises without any credible basis, especially when the said sales were duly reflected in books, supported by involces, transportation bills, and bank realization, 3rd party documents such as transport documents wrongly holding that it had been linked to multiple entities involved in providing accommodation entries.

6. That the CIT(A) has erred on facts and in law in sustaining the disallowance of Rs.88,95,892/- on account of alleged bogus purchases from Shri Gagan Singh (Prop. M/s Royal International), ignoring that the said purchases were supported by proper invoices, purchase orders, payment through banking channels, stock records, and consumption details, where no independent enquiry or adverse material was brought on record to disprove the genuineness of transactions

7. That the CIT(A) has erred on facts and in law in upholding the assessment framed on the basis of vague, unverified, and uncorroborated information, without granting adequate opportunity for cross-examination or confronting the Appellant with all adverse material relied upon by the AO, thereby vitiating the assessment proceedings.

8. The CIT(A) erred in upholding interest charged under various provisions of the Act without discussing the legal or factual basis or considering the appellant's submissions, even though the primary additions themselves were unjustified.”

3. Brief facts of the case are that, the Assessee was engaged in the business of manufacturing of tooth paste and brushes for the year under consideration. The case of the Assessee was reopened and an assessment order came to be passed on 31/03/2023 under Section 147 of the Income Tax Act, 1961 ('Act' for short) by computing the total income of the Assessee at Rs. 1,00,01,240/- by making addition of Rs. 11,05,348/- being 2% of total alleged bogus sale as commission received and Rs. 89,