Income-tax Officer, Ward - 2(2), Nashik V. Mulchand Fulchand Picha, Nashik

ITA 172/PUN/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5477 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 28-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARISES OUT OF PASSED
• Keywords: Bogus purchase; Reassessment proceedings

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO.172/PUN/2019 / ASSESSMENT YEAR : 2009-10 ITO, WARD-2(2), NASHIK VS. SHRI MULCHAND FULCHAND PICHA, PROP. M/S. SAGAR MILLS, 2, NIRANJAN SOCIETY, VASWANI ROAD, NASHIK PAN : AIIPP0750E (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE CIT(A)-1, NASHIK ON 05-11-2018 IN RELATION TO THE ASSES SMENT YEAR 2009-10. 2. THE ONLY ISSUE RAISED BY THE REVENUE IN THIS APPEAL IS AG AINST THE DELETION OF ADDITION OF RS.94,406/-. APPELLANT BY SHRI RAJESH GAWALI RESPONDENT BY NONE DATE OF HEARING 15-05-2019 DATE OF PRONOUNCEMENT 16-05-2019 ITA NO.172/PUN/2019 SHRI MULCHAND FULCHAND PICHA 2 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESS ING OFFICER INITIATED REASSESSMENT PROCEEDINGS ON THE GROUND THAT THE ASSESSEE RECORDED A BOGUS PURCHASE TRANSACTION OF RS.1 ,25,875/-. THE ASSESSEE PRODUCED TRANSPORTATION RECEIPT, OCTROI RECEIP T AND RELEVANT DOCUMENTS REFLECTING THE PAYMENTS MADE TO THE PARTY. THE LD. CIT(A) SUSTAINED THE ADDITION OF 25% OF THE ALLEGED BOGU S PURCHASE AMOUNT AND DELETED THE REMAINING ADDITION OF RS.94, 406/-. AGGRIEVED BY SUCH ORDER OF THE LD. CIT(A), THE REVENUE HAS COME UP IN APPEAL BEFORE THE TRIBUNAL. THERE IS NO INFORMATION A BOUT THE ASSESSEE HAVING FILED ANY CROSS APPEAL. 4. I HAVE HEARD THE LD. DR AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD. THERE IS NO APPEARANCE FROM THE SIDE OF AS SESSEE DESPITE NOTICE. THEREFORE, I AM PROCEEDING TO DISPOSE THE APPEAL EX PARTE QUA THE ASSESSEE. IT IS SEEN THAT THE AO BASED THE ADDITION O F RS.1,25,875/- ON THE FOUNDATION OF BOGUS PURCHASE AN D ADDED EQUAL AMOUNT RECORDED BY THE ASSESSEE IN ITS BOOKS OF ACCOUNT. THE ASSESSEE PRODUCED THE EVIDENCE BEFORE THE LD. CIT(A) IN THE SHAPE OF TRANSPORTATION RECEIPT, OCTROI RECEIPT AND OTHER RELEVANT DOCUMENTS. THIS DEMONSTRATES THAT THE ASSESSEE, IN FACT, MADE SOME GENUINE PURCHASES EVEN THOUGH THE BOGUS BILLS WERE OBTAINED AT ITA NO.172/PUN/2019 SHRI MULCHAND FULCHAND PICHA 3 HIGHER PRICE WHICH WERE RECORDED IN THE BOOKS OF ACCOUN T. UNDER SUCH CIRCUMSTANCES, ADDITION CANT BE MADE FOR THE ENTIRE AMOUNT OF PURCHASES. IN MY CONSIDERED OPINION, THE LD. CIT(A) WA S JUSTIFIED IN RESTRICTING THE ADDITION TO 25% OF THE AMOUNT OF PURCHASES. I, THEREFORE, UPHOLD THE IMPUGNED ORDER. 5. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH MAY, 2019. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 16 TH MAY, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-1, NASHIK 4. THE PR. CIT-1, NASHIK 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.172/PUN/2019 SHRI MULCHAND FULCHAND PICHA 4 DATE 1. DRAFT DICTATED ON 15-05-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 15-05-2019 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. *