Wintek Infotech Private Limited, Pune V. Deputy Commissioner of Income-tax, Circle - 1 (2), Pune

ITA 1590/PUN/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 0938 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 10 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 09-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bogus purchase; Accommodation entries

Judgement Text

आयकर अपीलीय अिधकरण “बी” Ɋायपीठ पुणे मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, PUNE BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI G.D.PADMASHALI, ACCOUNTANT MEMBER आयकर अपीलसं. / ITA No.1590/PUN/2019 िनधाᭅरणवषᭅ / Assessment Year : 2010-11 Wintek Infotech Pvt. Ltd., S.No. G 4/5, Asha Co-op Societyk, Shukrawar Peth, Pune – 411002. PAN: AAACW 8120 C Vs . The DCIT, Circle-1(2), Pune. Appellant/ Assessee Respondent /Revenue Assessee by Shri Kishor Phadke – AR Revenue by Shri Arvind Desai – DR Date of hearing 18/08/2022 Date of pronouncement 30/08/2022 आदेश/ ORDER Per S.S.Godara, JM: This assessee’s appeal for Assessment Year 2010-11 is directed against the Commissioner of Income Tax(Appeals), Pune- 8’s order dated 05.08.2019 passed in case no.PN/CIT(A)-8/DCITC Cir-1(2)/202/18-19/188, in proceedings u/s.143(3) r.w.s. 147 of the Income Tax Act, 1961 [in short “the Act”]. Heard both the parties. Case file perused. 2. It emerges at the outset that the assessee’s sole substantive ground raised herein challenges correctness of both the lower authorities action disallowing bogus purchases of Rs.53,84,216/- involving twin suppliers M/s.Siddhi Enterprises and Aradhana ITA No.1590/PUN/2019 for A.Y. 2010-11 Wintek Infotech Private Limited (A) 2 Corporation involving Rs.4316366/- and Rs.1067850/-; respectively on the ground that the department’s Investigation Wing had received information from the Maharashtra Sales Tax Department about the foregoing suppliers having indulged in providing such accommodation entries. 3. Mr.Phadke could hardly dispute both the learned lower authorities’ respective discussion(s) that the assessee could not even file on record the set twin suppliers ledger accounts, purchase orders, vouchers, transportation bills, octroi receipts, weighing bills, receipt notes, payments and confirmations; as the case may be. Faced with this situation, we find merit in Revenue’s arguments supporting the impugned disallowance in principle. 4. Next comes equally important aspect of quantification of the impugned bogus purchases disallowance. Learned DR vehemently argued that we must disallow the entire sum on account of the assessee’s failure in filing all the foregoing details. The fact however remains that the Revenue has itself accepted the corresponding increase in stock items as well as sales recorded against the very purchases. Hon’ble jurisdictional high court’s decisions in PCIT Vs. Mohammed Haji Adam Khan and Company [2019] 103 taxmann.com 459 (Bom) holds that such bogus purchases could not be allowed in entirety. Faced with this situation, we deem it ITA No.1590/PUN/2019 for A.Y. 2010-11 Wintek Infotech Private Limited (A) 3 appropriate that the impugned bogus purchases of Rs.53,84,216/- deserved to be disallowed only to the extent of the gross profit element embedded therein @ 10% on estimation basis subject to the rider that the same shall not be treated as a precedent. Ordered accordingly. Necessary computation shall follow as per law. 5. This assessee’s appeal is partly allowed in above terms. Order pronounced in the open Court on 30 th August, 2022. Sd/- Sd/- (G.D.PADMASHALI) (S.S.GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 30 th Aug, 2022/ SGR* आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “बी” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.