THE PRINCIPAL COMMISSIONER OF INCOME TAX - 25 vs SHREE GANESH DEVELOPERS

Judgment text excerpt

1 901.itxa-719.18 (j).docx ppn IN THE HIGH COURT OF JUDICATURE AT BOMBAY Digitally signed by PRACHI ORDINARY ORIGINAL CIVIL JURISDICTION PRACHI PRANESH PRANESH NANDIWADEKAR NANDIWADEKAR Date: 2025.03.05 14:52:22 +0530 INCOME TAX APPEAL NO. 719 OF 2018 The Principal Commissioner of Income-tax – 25 C-10, Pratyakshakar Bhavan, Bandra-Kurla Complex, Mumbai 400 051. …Petitioner Versus Shree Ganesh Developers 301, Krishna Kunj, V.L. Mehta Road, Vile Parle (West), Mumbai – 400 049. ...Respondent ______________________________________________________ Ms. Gokhale for the Petitioner. Mr. Ajay R. Singh a/w Mr. Akshay Pawar for the Respondent. ______________________________________________________ CORAM M.S. Sonak & Jitendra Jain, JJ. RESERVED ON: 27 February 2025 PRONOUNCED ON : 5 March 2025 JUDGMENT (Per Jitendra Jain, J.) :- 1. This appeal filed by the appellant-revenue for the assessment year 2010-11 was admitted on 29 January 2025 on the following substantial question of law:- "(i) Whether the Tribunal after accepting that this a case of bogus purchases, could have proceeded to determine profit rate without confirming the disallowance of purchases, without considering the provisions of Section 69C of the Income Tax Act, 1961 and without considering the decision of the Gujarat High Court in the case of N.K. Industries Ltd. Vs. Deputy Commissioner of Income Tax, (2016) 72 taxmann.com 289 since the Special Leave Petition against the said decision was dismissed by the Hon'ble Supreme 2 901.itxa-719.18 (j).docx Court in case of N. K. Proteins Ltd. Vs. Deputy Commissioner of Income Tax, on 16 January 2017, (2017) 84 taxmann.com 195 (SC) ? (ii) On the facts and circumstances of the case and in law, the ITAT has erred in restricting the disallowance to profit margin on unproven purcha