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IN THE INCOME TAX APPELLATE TRIBUNAL,

DELHI BENCH: ‘C’ NEW DELHI

BEFORE SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER

AND SHRI VIMAL KUMAR, JUDICIAL MEMBER

ITA No. 4640/Del/2024

Assessment Year: 2013-14

Assistant Commissioner of Vs. The Indure Private Limited,

Income Tax, Indure House, Greater Kailash Part II,

Delhi South Delhi

1100 48

PAN :AAACT0121C

(Appellant) (Respondent)

Department by S/Shri Ashwani Kumar & Ankur

Agarwal, CAs.

Assessee by Shri Om Prakash, Sr. DR

Date of hearing 30.10.2025

Date of pronouncement 31.12.2025

ORDER

PER VIMAL KUMAR, JUDICIAL MEMBER:

The appeal filed by the Department of Revenue is against order dated

07.08.2024 of Learned Commissioner of Income Tax (Appeals)/National

Faceless Assessment Centre (NFAC), Delhi (hereinafter referred to as “Ld.

CIT(A)") under Section 250 of the Income Tax Act, 1961 (hereinafter referred

to as "the Act”) arising out of order dated 20.05.2023 of the Learned Assessing

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ITA No. 4640/Del/2024

Officer/Assessment Unit (hereinafter referred to as "Ld. AO") under Sections

147 r.w.s. 144 r.w.s. 144B of the Act for AY 2013-14.

2. Brief facts of the case are assessee company filed its return of income

under Section 139(1) of the Act declaring income of Rs.34,91,81,150/-. As per

information available with the Department, the assessee during financial year

2012-13 ( assessment year 2013-14) had undertaken following transactions:

3. The transactions made by the assessee with non-existing entities. Ld. AO

had reasoned to believe that income had escaped assessment within the meaning

of section 147 of the Act. An order under Section 148A(d) and notice under

Section 148 of the Act dated 28.07.2022 were issued. Notices under Section

143(2) of the Act copies under Section 142(1) of the Act as well as show-cause-

notice were issued. The assessee filed reply. Notices under Section 142(1) dated

27.12.2022 and 11.02.2023 were issued asking various details. The assessee

filed part details on 20.02.2023. In response to notice under Section 148 of the

Act, the assessee filed reply dated 29.07.2022, stating that due error shown on

portal, the return of income could not be filed. On completion of proceedings,

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Ld. AO vide order dated 20.05.2023 made additions of Rs.1,94,00,000/- and

Rs.2,70,00,000/-.

4. Against order dated 20.05.2023 of Ld. AO, the appellant/assessee filed

appeal before Ld. CIT(A) which was partly allowed vide order dated

07.08.2024.

5. Being aggrieved, Department of Revenue, preferred present appeal with

following ground:

“1. Whether on the facts and circumstances of the case, the Ld.

CIT(A)/NFAC has erred in allowing the ground of the assessee ignoring

the facts that the transactions made by the assessee to the tune of Rs.

4,64,00,000/- with M/s. Shree Shyam Trading Company (Prop. business

of Shri Anand Muraka and M/s. R. B. Fabrications) Prop. of Baburam

Samasi) were bogus purchases whereas the assessee failed to prove the

genuineness of the transaction during assessment proceedings.”

6. Learned Authorized Representative for the Department of Revenue

submitted that Ld. CIT(A) erred in deleting the additions ignoring detailed

discussion in the order of Ld. AO. Hon'ble High Court of Punjab & Haryana in

Narender Kumar Gupta [2015] 55 taxmann.com 371 (Punjab & Haryana) held

that Tribunal cannot delete addition under Section 69C and estimate the income.

Where Assessing Officer made addition to assessee's income under section 69C

in respect of bogus purchases, in view of failure of assessee to even prove

existence of suppliers, Tribunal could not delete impugned addition and direct

Assessing Officer to assess income at net profit rate of 6 per cent. In the case of

NK Industries Ltd [2016] 72 taxmann.com 289 (Gujarat)/[2017] 292 CTR 354

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ITA No. 4640/Del/2024

(Gujarat) In case of bogus purchases, the entire amount has to be added: Taxing

only 25% of these bogus claim goes against the principles of Sections 68 and

69C of the Income Tax Act. The entire purchases shown on the basis of

fictitious