M/S Rudraksh Chemicals Pvt Ltd, Pune V. Income Tax Officer, Ward-5(4), Pune, Pune

ITA 1035/PUN/2023

AI Insights

The case involves M/s. Rudraksh Chemicals Pvt. Ltd., which appealed against the order of the CIT(A) confirming an addition of Rs.6,92,441 to their income for the assessment year 2018-19. The addition was based on discrepancies between the purchase amounts recorded by the assessee and the sales amounts confirmed by the suppliers. The AO had issued notices under section 133(6) of the Income-tax Act to the suppliers, and based on their responses, noted a significant difference in the reported figures. The assessee contested the differences, attributing them to factors like the inclusion of GST by some suppliers and differences in opening balances. The Tribunal found merit in reassessing the matter and remanded it back to the AO for a detailed examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124097 (ITAT-PUNE)
• Duration Of Justice: 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 12-10-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 26-09-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Assessee Lawyers: HARI KRISHAN
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT आयकर अपील सं. /ITA No.1035/PUN/2023 नधा रण वष / Assessment Year : 2018-19 M/s. Rudraksh Chemicals Pvt. Ltd., Suyog Centrer, Office No.501, 5 th Floor, Near Market Yard, Pune - 411037, Maharashtra PAN : AACCR0698C Vs. ITO, Ward-5(4), Pune Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP: This appeal by the assessee arises out of the order dated 31-07-2023 passed by the CIT(A) in National Faceless Appeal Centre (NFAC), Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2018-19. 2. The only issue raised in this appeal is against the confirmation of addition of Rs.6,92,441/-. 3. Briefly stated, the facts of the case are that the assessee had shown purchases of Rs.282.64 crore and sales of Rs.286.19 crore. The Assessing Officer (AO) called upon the assessee to furnish the details of the parties from whom the purchases were made. The Assessee by Shri Hari Krishan Revenue by Smt. Neha Deshpande Date of hearing 13-10-2023 Date of pronouncement 13-10-2023 ITA No. 1035/PUN/2023 M/s.Rudraksh Chemicals Pvt. Ltd., 2 assessee furnished such details. Thereafter, the AO issued notice u/s.133(6) to the suppliers requiring confirmation of the transaction with the assessee. Most of the suppliers responded to the same. The AO has drawn a chart at page 4 of the assessment order noting the amount of purchases shown by the assessee and amount of sales as confirmed by the suppliers with the difference, sum total of which comes to Rs.13,84,88,225/-. The AO held that the assessee did not include such purchases in the books of account and accordingly failed to offer income thereon. Applying the gross profit rate of 0.50%, being, the normal gross profit rate, he computed the addition of Rs.6,92,441/-, which came to be affirmed in the first appeal. Aggrieved thereby, the assessee has approached the Tribunal. 4. I have heard the rival submissions and gone through the relevant material on record. It is seen that the basis of the addition is the difference in the amount of purchases as shown by the assessee and as confirmed by the sellers. The ld. AR submitted that actually no difference exists, for the reason that, in some of the cases, the suppliers included the amount of GST which was not so included by the assessee; whilst in others there were differences in the opening balances. He fairly admitted that such complete details could not be furnished before the authorities below. In view of the fact that the ITA No. 1035/PUN/2023 M/s.Rudraksh Chemicals Pvt. Ltd., 3 assessee has now come up with a chart claiming that no difference exists in the purchases for the year under consideration on the reason stated above, I am of the considered opinion that it would be just and fair if the impugned order is set aside and the matter is restored to the file of the AO for making the assessment afresh on this point after giving a reasonable opportunity of hearing. I order accordingly. 5. In the result, the appeal is allowed for statistical purposes. Order pronounced in the Open Court on 13 th October, 2023. Sd/- (R.S.SYAL) VICE PRESIDENT प ु णे Pune; दनांक Dated : 13 th October, 2023 Satish आदेश क त ल प अ े षत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. यथ / The Respondent; 3. The Pr.CIT concerned 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, SMC, Pune / DR, ITAT, Pune 5. गाड फाईल / Guard file आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No. 1035/PUN/2023 M/s.Rudraksh Chemicals Pvt. Ltd., 4 Date 1. Draft dictated on 13-10-2023 Sr.PS 2. Draft placed before author 13-10-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *