{"id":47033,"date":"2024-10-16T10:35:53","date_gmt":"2024-10-16T05:05:53","guid":{"rendered":"https:\/\/itatonline.org\/digest\/ashok-kumar-rungta-v-ito-bom-hc-www-itatonline-org\/"},"modified":"2025-07-26T15:00:53","modified_gmt":"2025-07-26T09:30:53","slug":"ashok-kumar-rungta-v-ito-bom-hc-www-itatonline-org","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/ashok-kumar-rungta-v-ito-bom-hc-www-itatonline-org\/","title":{"rendered":"Ashok Kumar Rungta v. ITO (2024) 301 Taxman 580\/2025) 342 CTR 103 \/474 ITR 160  ( Bom)( HC) . www.itatonline .org"},"content":{"rendered":"<p>The Assessing Officer disallowed the 100% of alleged bogus purchases . On appeal \u00a0the CIT(A) \u00a0accepted the sales tax and VAT Audit report restricted to 10 % of alleged bogus purchases . On appeal the Tribunal affirmed the order of the CIT(A) on the ground that the goods were \u00a0purchased from the grey market . \u00a0\u00a0On appeal the Court held that the sales were not in doubt . Court also held that apart from the inputs being received from the investigation wing, there is nothing concrete in the material on record that was used to confront the Appellant. \u00a0If the counterparties in these purchases could not be produced years later, simply adopting a 10% margin for disallowance, without any cogent or convincing evidence, is unreasonable and arbitrary. It is repugnant for the ITAT to uphold such an addition of 10% of the allegedly bogus purchases to the income of the Appellant, \u00a0despite returning a firm finding that the AO Order was untenable not being backed by cogent and convincing evidence. \u00a0Accordingly the Honourable High Court set aside the order of the Tribunal and allowed the appeals of the assessee. \u00a0\u00a0Relied on\u00a0 CIT v. Nikunj Eximp Enterprises Pvt. Ltd. (2015) 372 ITR 319 ( Bom)( HC), \u00a0PCIT v. \u00a0SVD Resins &amp; Plastics (P.) Ltd. [2024] 166 taxmann.com 242 (Bom)( HC) , PCIT \u00a0v. Shapoorji Pallonji and Co. Ltd [2020] 117 taxmann.com 625 (Bom) ( HC) (SLP dismissed ,PCIT v.Shapoorji Pallonji and Co. Ltd. [2022] 288 Taxman 661(SC) <strong>\u00a0.<\/strong>(ITA Nos , 1753 \/ 1759\/ 2780 of 2018 dt .15 -10 2024 ) ( AY. 2009 -10 , 2010-11, 2011-12\u00a0 )<\/p>\n","protected":false},"excerpt":{"rendered":"<p> S. 69C:  Unexplained expenditure -Bogus purchases -Tribunal confirmed 10% of alleged bogus purchases \u2013 On appeal High Court deleted the  10% of alleged bogus purchases  confirmed by the Tribunal . [ S. 260A ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-47033","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-ceB","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=47033"}],"version-history":[{"count":4,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47033\/revisions"}],"predecessor-version":[{"id":55572,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47033\/revisions\/55572"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=47033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=47033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=47033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}