Bhargab Engineering Works, Howrah V. A.C.I.T.,Circle-46, Kolkata

ITA 1713/KOL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8732 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 08-07-2020
• Assessment Year: 2011-2012
• Appeal Filed On: 22-07-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DHRUBAJYOTI ROY
• Assessee Lawyers: MIRAJ D. SHAH
• Keywords: Bogus purchase
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A (VIRTUAL COURT HEARING), BENCH KOLKATA BEFORE SHRI S. S. GODARA, JM & DR. A.L. SAINI, AM ./I.T.A NO.1713/KOL/2019 ( [ [ / ASSESSMENT YEAR: 2011-12) BHARGAB ENGINEERING WORKS P-292, BENARAS ROAD, BELGACHIA, P.O:NETAJIGARH, HOWRAH-711108. VS. ACIT, CIRCLE-46, KOLKATA ./ ./PAN/GIR NO.: AAIFB2118G (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI MIRAJ D. SHAH, AR RESPONDENT BY : SHRI DHRUBAJYOTI ROY, JCIT / DATE OF HEARING : 08/07/2020 /DATE OF PRONOUNCEMENT : 22/07/2020 / O R D E R PER SHRI S. S. GODARA: THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2011-12 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (A) - 14, KOLKATA DATED 07.05.2019 PASSED IN CASE NO.CIT(A),KOLKATA-14/10327/2018-19 INVOLVING PROCEEDINGS U/S 143(3)/147 OF THE INCOME TAX ACT, 1961(IN SHORT THE ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. IT TRANSPIRES AT THE OUTSET THAT THE INSTANT LIS ARISING OUT OF THE ASSESSING OFFICERS REASSESSMENT FRAMED ON 12.11.2018 THEREBY DISALLOWING ASSESSEES PURCHASES AMOUNT OF RS.45,08,664/- AS BOGUS. THE CIT(A) HAS UPHELD THE IMPUGNED DISALLOWANCE. IT IS IN THIS BACKDROP THAT THE ASSESSEE HAS NOT ONLY CHALLENGED VALIDITY OF THE REOPENING FOR NOT RECORDING OF ITS FAILURE IN DISCLOSING FULLY AND TRULY ALL PARTICULARS OF INCOME IN VIEW OF SECTION 147 1 ST PROVISO BUT ALSO ITS CASE ON MERITS IS THAT ALL OF ITS PURCHASES HAD BEEN RIGHTLY TREATED AS GENUINE IN THE FIRST ROUND OF SCRUTINY ASSESSMENT. CASE FILE SUGGESTS THAT BOTH THESE GROUNDS HAVE BEEN RENDERED INFRUCTUOUS SINCE THE TRIBUNALS COORDINATE BENCHS ORDER IN I.T.A NO.1713/KOL/2019 ASSESSMENT YEAR: 2011-12 BHARGAB ENGINEERING WORKS PAGE | 2 ITA NO.2254/KOL/2014 DATED 02.06.2017 RELATING TO THE FORMER ROUND OF SCRUTINY ASSESSMENT HAS ORDERED ESTIMATION OF ASSESSEES NET PROFIT (BEFORE PARTNERS REMUNERATION) AT 8% OF THE TOTAL TURNOVER OF RS.1058.91 LACS. THAT BEING THE CASE, WE HOLD THAT THE IMPUGNED PURCHASES OUGHT NOT TO BE DISALLOWED AS BOGUS IN THE INSTANT SECOND ROUND AS A NECESSARY COROLLARY. WE THEREFORE ACCEPT THE ASSESSEES LATTER SUBSTANTIVE GRIEVANCE ON MERITS AND DELETE THE IMPUGNED BOGUS PURCHASE DISALLOWANCE OF RS.45,08,664/-. 3. LEARNED COUNSEL IS FAIR ENOUGH IN NOT PRESSING THE ASSESSEES GRIEVANCE CHALLENGING VALIDITY OF THE REOPENING IN ISSUE. 4. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOVE TERMS. ORDER IS PRONOUNCED IN THE OPEN COURT ON 22.07.2020. SD/- ( A. L. SAINI ) SD/- (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER /KOLKATA; / DATE: 22/07/2020 RS / COPY OF THE ORDER FORWARDED TO : TRUE COPY BY ORDER ASSISTANT REGISTRAR, I.T.A.T, KOLKATA BENCHES, KOLKATA . 1. THE APPELLANT- BHARGAB ENGINEERING WORKS 2. THE RESPONDENT- ACIT, CIRCLE-46, KOLKATA 3. ( ) / THE CIT(A), KOLKATA [SENT THROUGH EMAIL] 4. / CIT 5. , , / DR, ITAT, KOLKATA [SENT THROUGH EMAIL] 6. [ / GUARD FILE.