JCIT(OSD), Circle -10, Kolkata, Kolkata V. M/s Terrace & Top India Pvt.Ltd., Kolkata

ITA 1430/KOL/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 74978 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2014
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 08-10-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A P ROY SRDR
• Assessee Lawyers: K M ROY
• Keywords: Bogus purchase
• Section: 145

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH C KOLKATA BEFORE SHRI, P.K BANSAL, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER ITA NO. 1430 / KOL / 2012 ASSESSMENT YEAR :2009-10 JCIT (OSD), CIRCLE-10, P-7, CHOWRINGHEE SQUARE, 3 RD FLOOR, KOLKATA 700 069 V/S . M/S TERRACE & TOP INDIA PVT. LTD. P-9, MOTIJHEEL AVENUE, KOLKATA 700 074 [ PAN NO.ACCT 1118 R ] /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI A.P.ROY, SR-DR /BY RESPONDENT SHRI K.M. ROY, AR /DATE OF HEARING 16-01-2014 /DATE OF PRONOUNCEMENT 17-01-2014 / // / O R D E R PER P.K.BANSAL, ACCOUNTANT MEMBER:- THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME-TAX (APPEALS)-XII, KOLKATA D ATED 13-07-2012 PERTAINS TO ASSESSMENT YEAR 2009-10 BY TAKING THE F OLLOWING EFFECTIVE GROUNDS OF APPEAL:- 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE, LD. CIT(A) IS CORRECT IN DELETING THE ADDITION ON ACCOU NT OF BOGUS PURCHASE WITHOUT ANY EVIDENCE? ITA NO.1430/KOL2012 A.Y. 2009-10 JCIT(OSD) CIR-10, KOL V. M/S. TERACE & TOP IND IA PVT. LTD. PAGE 2 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, LD. CIT(A) IS CORRECT IN DELETING THE ADDITION ON ACCOU NT OF BOGUS PURCHASE IN SPITE OF THE FACT THAT THE IMPUGNED PURCHASE COU LD NOT BE CONFIRMED EITHER BY THE ASSESSEE OR BY THE PARTIES RELATED TO THE ASSESSEE? 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL OF REVENU E RELATES TO THE DELETION OF ADDITION MADE BY ASSESSING OFFICER ON ACCOUNT OF BOGUS PURCHASE AMOUNTING TO RS.1,77,02,118/-. 3. WE HEARD RIVAL SUBMISSION AND CAREFULLY CONSIDER ED THE SAME. WE NOTED THAT IT IS NOT A CASE WHERE THE ASSESSING OFF ICER HAS ESTIMATED PROFIT BY REJECTING THE BOOKS OF ACCOUNT U/S. 145 OF THE INCO ME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). WE DO NOT A GREE WITH THE FINDING GIVEN BY CIT(A) WHILE DELETING THE ADDITION MADE BY HIM. WE FURTHER NOTED THAT DURING THE COURSE OF HEARING AO ISSUED THE SHOW-CAUSE NOTI CE TO THE ASSESSEE FOR VERIFYING THE VARIOUS EXPENSES HAS BEEN DEBITED IN ITS PROFIT AND LOSS ACCOUNT. THE ASSESSEE EVEN THOUGH GAVE THE WRITTEN SUBMISSIO N AND DETAILS REGARDING PURCHASE OF GOODS AND FINISHED MATERIAL BUT DID NOT PRODUCE ANY BILLS AND VOUCHERS TO PROVE THE GENUINENESS OF THE EXPENDITUR E ITS ONLY AND WHEN THE ASSESSMENT WAS GETTING OF TIME BARRED THAT ASSESSEE PRODUCED THE PART OF THE BILLS. BEFORE US ALSO EVEN THOUGH THE LD. AR VEHEME NTLY RELIED ON THE ORDER OF CIT(A) AND FILED BEFORE US A STATEMENT OF THE SUNDR Y CREDITORS GIVING PAN AS WELL AS ADDRESS IN MOST OF THE CASES BUT DID NOT PR ODUCE THE COPY OF BILLS. IT IS NOT DENIED THAT VAT CHARGED ON THE PURCHASE @ 4% FR OM THE DEPTT. OF FINANCE, GOVT. WEST BENGAL, WE ARE THEREFORE OF TH E VIEW THE ASSESSEE WOULD HAVE SAVED VAT IF THE PURCHASE ARE MADE WITHOUT THE BILLS AS THE TOTAL ADDITION MADE BY THE AO IN THE ABSENCE OF THE BILLS ARE RS.1,77,02,118/- AND THE ASSESSEE HAS PRODUCED BILLS FOR PART OF THE PUR CHASES AS IS APPARENT FROM THE ASSESSMENT ORDER. WE ESTIMATE SUCH PURCHASE HAL F THEREOF I.E., RS.83,51,059/- AND SUSTAIN THE ADDITION THEREON TO THE EXTENT OF 5% THEREOF AS IN OUR OPINION, THE ASSESSEE WOULD HAVE SAVED 5% BY WAY OF VAT AND OTHER LEVIES. WE ACCORDINGLY SET ASIDE THE ORDER OF CIT(A ) AND DIRECT THE ASSESSING ITA NO.1430/KOL2012 A.Y. 2009-10 JCIT(OSD) CIR-10, KOL V. M/S. TERACE & TOP IND IA PVT. LTD. PAGE 3 OFFICER TO MAKE THE ADDITION INSTEAD OF BOGUS PURCH ASE @ 5% OF RS.83,51,059/-. 4. IN THE RESULT, APPEAL FILED BY THE REVENUE IS PARTL Y ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT 17/ 01/2014 SD/- SD/- (GEORGE MATHAN) (P.K.BANSAL) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) KOLKATA, *DKP !- 17/01/2014 , , , , -, -, -, -, / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT JCIT (OSD), CIRCLE-10, P-7, CHOWRINGHEE SQUARE, 3 RD FLOOR, KOLKATA 700 069 2. / RESPONDENT M/S TERRACE & TOP INDIA PVT. LTD. P-9, MOTIJHEEL AVENUE, KOLKATA 700 074 3. 2 / CONCERNED CIT 4. 2- / CIT (A) 5. , , , / DR, ITAT, KOLKATA 6. 9 / GUARD FILE. BY ORDER/ , /TRUE COPY/ / ,