J.K.Engineering Corporation, Howrah V. I.T.O.,Ward-47(2), Kolkata

ITA 1849/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9130 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 06-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA
• Assessee Lawyers: A N KESHARI
• Keywords: Bogus purchase; Onus to prove
• Section: 250; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA SMC BENCH, KOLKATA (BEFORE SRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER) ITA NO. 1849/KOL/2019 ASSESSMENT YEAR: 2011-12 J.K. ENGINEERING CORPORATION...............................................................APPELLANT NABANAGAR, DUILLYA ANDUL HOWRAH WEST BENGAL 711 302 [PAN : AAFFJ 2845 P] VS. INCOME TAX OFFICER, WARD-47(2), KOLKATA............................................RESPONDENT APPEARANCES BY: SHRI A.N. KESHARI, FCA, APPEARED ON BEHALF OF THE ASSESSEE. SHRI JAYANTA KHANRA, JCIT SR. D/R, APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : DECEMBER 12 TH , 2019 DATE OF PRONOUNCING THE ORDER : JANUARY 10 TH , 2020 ORDER PER J. SUDHAKAR REDDY, AM :- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 14, KOLKATA, (HEREINAFTER THE LD.CIT(A)), PASSED U/S. 250 OF THE INCOME TAX ACT, 1961 (THE ACT), DT. 02/05/2019, FOR THE ASSESSMENT YEAR 2011-12. 2. THE SOLE ISSUE THAT ARISES IN THIS APPEAL FOR OUR ADJUDICATION IS WHETHER THE ALLEGATION OF THE REVENUE THAT THE ASSESSEE HAS MADE BOGUS PURCHASES OF RS.11,85,227/- FROM TWO PARTIES IS CORRECT OR NOT. THE ASSESSING OFFICER ASSESSED A PERCENTAGE OF THESE PURCHASES AS INCOME FROM THE ASSESSEE. THE TWO PARTIES ARE M/S. SINGH MERCANTILE (P) LTD. (RS.5,00,010/-) AND M/S. DURGA COMMODEAL (P) LTD. (RS.6,85,217/-). THE ASSESSING OFFICER DEPENDED ON THE INFORMATION RECEIVED FROM THE INVESTIGATION WING OF THE INCOME TAX DEPARTMENT WHICH CONDUCTED A SEARCH OPERATION IN THE CASE OF SHRI SANJIW KUMAR SINGH, U/S 132 OF THE ACT. SHRI SANJIW KUMAR SINGH, IS ALLEGED TO HAVE STATED, IN HIS STATEMENTS THAT, HE IS ENGAGED IN JAMAKHARCHI OR ACCOMMODATION ENTRY BUSINESS. 3. THE ASSESSEES CASE IS THAT, PURCHASES FROM M/S. SINGH MERCANTILE, DOES NOT PERTAIN TO THE CURRENT FINANCIAL YEAR. THE SAID PURCHASES WERE MADE FOR THE ASSESSMENT YEAR 2009-10. THIS FACT WAS NOT CONTRADICTED BY THE LD. D/R. THUS, WE DIRECT THE ASSESSING OFFICER THESE PURCHASES DURING THE IMPUGNED ASSESSMENT YEAR. 4. COMING TO THE PURCHASES FROM M/S. DURGA COMMODEAL PVT. LTD., THE ASSESSEE SUBMITS THAT NO SUCH PURCHASES WERE MADE BY HIM AND THE PURCHASES WERE FROM M/S. DURGA TRADING CORPORATION. IT WAS FURTHER SUBMITTED THAT THE MATERIAL PURCHASED FROM M/S. DURGA TRADI CO. LTD., JOJLERA POWER PLANT, JAMSHEDPUR, FOR A PROFIT AND THAT SALE PROCEEDS WERE REC EIVED BY WAY OF ACCOUNT PAYEE CHEQUES. THE INVOICES GIVING THE SALES TAX NUMBERS ETC. WERE PRODUCED BEFORE ME. 4.1. THE LD. D/R, ON THE OTHER HAND, SUBMITS THAT THE FIRM M/S. DURGA TRADING COPRORATION IS MANAGED BY SHRI SANJIW KUMAR SINGH A AS PER THE ADMISSION MADE DURING THE COURSE OF SEARCH. 5. IN MY VIEW, THE ASSESSEE HAS DISCHARGED THE BURDEN OF PROOF THAT LAY ON HIM WITH REGARD TO THESE PURCHASES AND THE REVENUE HAS NOT PRODUCED ADEQUATE EVIDENCE IN SUPPORT OF THE ABOVE. NO COPY OF THE ALLEGED STATEMENT IS PRODUCED. THE ADDITION IS BAD IN LAW. HENCE THE SAME IS DELETED. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. KOLKATA, THE DATED : 10.01.2020 {SC SPS} 2 DIRECT THE ASSESSING OFFICER TO DELETE THE GROSS PROFIT ADDITION MADE ON ACCOUNT OF THESE PURCHASES DURING THE IMPUGNED ASSESSMENT YEAR. COMING TO THE PURCHASES FROM M/S. DURGA COMMODEAL PVT. LTD., THE ASSESSEE SUBMITS THAT NO SUCH PURCHASES WERE MADE BY HIM AND THE PURCHASES WERE FROM M/S. DURGA TRADING CORPORATION. IT WAS FURTHER SUBMITTED THAT THE MATERIAL PURCHASED FROM M/S. DURGA TRADI N G CORPORATION, WAS IN TURN SOLD TO M/S. TATA POWER CO. LTD., JOJLERA POWER PLANT, JAMSHEDPUR, FOR A PROFIT AND THAT SALE PROCEEDS WERE EIVED BY WAY OF ACCOUNT PAYEE CHEQUES. THE INVOICES GIVING THE SALES TAX NUMBERS ETC. WERE PRODUCED BEFORE ME. THE LD. D/R, ON THE OTHER HAND, SUBMITS THAT THE FIRM M/S. DURGA TRADING COPRORATION IS MANAGED BY SHRI SANJIW KUMAR SINGH A ND HENCE IT IS A BOGUS PURCHASE AS PER THE ADMISSION MADE DURING THE COURSE OF SEARCH. IN MY VIEW, THE ASSESSEE HAS DISCHARGED THE BURDEN OF PROOF THAT LAY ON HIM WITH REGARD TO THESE PURCHASES AND THE REVENUE HAS NOT PRODUCED ADEQUATE EVIDENCE NO COPY OF THE ALLEGED STATEMENT IS PRODUCED. THE ADDITION IS HENCE THE SAME IS DELETED. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. KOLKATA, THE 10 TH DAY OF JANUARY, 2020. SD/- [ J. SUDHAKAR REDDY ] ACCOUNTANT MEMBER ITA NO. 1849/KOL/2019 ASSESSMENT YEAR: 2011-12 J.K. ENGINEERING CORPORATION TO DELETE THE GROSS PROFIT ADDITION MADE ON ACCOUNT OF COMING TO THE PURCHASES FROM M/S. DURGA COMMODEAL PVT. LTD., THE ASSESSEE SUBMITS THAT NO SUCH PURCHASES WERE MADE BY HIM AND THE PURCHASES WERE MADE FROM M/S. DURGA TRADING CORPORATION. IT WAS FURTHER SUBMITTED THAT THE MATERIAL G CORPORATION, WAS IN TURN SOLD TO M/S. TATA POWER CO. LTD., JOJLERA POWER PLANT, JAMSHEDPUR, FOR A PROFIT AND THAT SALE PROCEEDS WERE EIVED BY WAY OF ACCOUNT PAYEE CHEQUES. THE INVOICES GIVING THE SALES TAX NUMBERS THE LD. D/R, ON THE OTHER HAND, SUBMITS THAT THE FIRM M/S. DURGA TRADING A BOGUS PURCHASE IN MY VIEW, THE ASSESSEE HAS DISCHARGED THE BURDEN OF PROOF THAT LAY ON HIM WITH REGARD TO THESE PURCHASES AND THE REVENUE HAS NOT PRODUCED ADEQUATE EVIDENCE NO COPY OF THE ALLEGED STATEMENT IS PRODUCED. THE ADDITION IS COPY OF THE ORDER FORWARDED TO: 1. J.K. ENGINEERING CORPORATION NABANAGAR, DUILLYA ANDUL HOWRAH WEST BENGAL 711 302 2. INCOME TAX OFFICER, WARD- 47(2), 3. CIT(A)- 4. CIT- , 5. CIT(DR), KOLKATA BENCHES, KOLKATA. 3 J.K. ENGINEERING CORPORATION 47(2), KOLKATA 5. CIT(DR), KOLKATA BENCHES, KOLKATA. ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES ITA NO. 1849/KOL/2019 ASSESSMENT YEAR: 2011-12 J.K. ENGINEERING CORPORATION TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES