> v. Income Tax Officer Ward 17 1 Delhi & Anr

$~2 *IN THE HIGH COURT OF DELHI AT NEW DELHI+W.P.(C) 6094/2025 and CM APPL. 27850/2025MOHAN MART PRIVATE LIMITED.....PetitionerThrough:Mr Mani Bhadra Jain, Advocate.versus INCOME TAX OFFICER WARD 17 1 DELHI & ANR. .....Respondents Through:Mr Abhishek Maratha, SSC with MrApoorvAgarwalandMrParthSamwal, JSCs. CORAM:HON'BLE MR. JUSTICE VIBHU BAKHRUHON'BLE MR. JUSTICE TEJAS KARIAO R D E R01.07.2025 % 1.The petitioner has filed the present petition, inter alia, impugning anassessment order dated 28.03.2025 [impugned assessment order], wherebythe Assessing Officer has made a total addition of a sum of₹3,21,04,891/- under Section 68 of the Income Tax Act, 1961 [the Act]. Inaddition, the AO has also made an addition of sum of ₹1,90,56,735/- on account of cessation of liability. 2.The AO made the said additions on the premise that the entity towhich sales were made [M/s Irenia Impex Pvt. Ltd.] was a bogus entity. Thesaid assessment order was made pursuant to reassessment proceedings thatwere initiated by issuance of notice dated 14.03.2024 under Section 148 ofthe Act. The said notice was issued on the basis of an investigation reportalleging that the petitioner had made bogus purchases of an amount of ₹3,21,04,891/- from M/s Irenia Impex Pvt. Ltd. However, during the assessment proceedings it was found that the petitioner had made sales of₹3,21,04,891/- to M/s Irenia Impex Pvt. Ltd. According to the petitioner, it had also received advances for purchases from the same entity during the theprior year and had adjusted an amount of ₹1,90,56,735/- from the sale consideration. However, the AO not only added the amount of sales madeto the alleged bogus entity but also the amount, which is adjusted from thesale consideration. 3.In view of above, this court had issued a notice on 08.05.2025. MrAgarwal, learned counsel for the Revenue had sought time to takeinstructions. He now states, on instructions, that the impugned assessmentorder may be set aside and the matter be remanded to the AO forconsideration afresh. The said course commends to this court. Accordingly,the impugned assessment order is set aside and the matter is remanded to theAO for consideration afresh in accordance with law. 4.The petition is disposed of in the aforesaid terms. Pending applicationis also disposed of. VIBHU BAKHRU, J JULY 01, 2025/tr TEJAS KARIA, J Click here to check corrigendum, if any