Chocolate Kids, Pune V. Income-tax Officer, Ward - 12(5), Pune

ITA 1881/PUN/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 4951 (ITAT-PUNE)
• Duration Of Justice: 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 14-08-2019
• Assessment Year: 2010-2011
• Appeal Filed On: 11-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VISHWAS MUNDHE
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL , VICE PRESIDENT . / ITA NO. 1881 /PUN/20 18 / ASSESSMENT YEAR : 2010 - 11 M/S. CHOCOLATE KIDS, 610, LAXMI ROAD, SADASHIV PETH, PUNE - 411 030. PAN : AADFL1960B ....... / APPELLANT / V/S. THE INCOME TAX OFFICER, WARD 12(5), PUNE. / RESPONDENT A SSESSEE BY : SHRI PRATIK SANDBHOR REVENUE BY : SHRI VISHWAS MUNDHE / DATE OF HEARING : 1 4 .0 8 .2019 / DATE OF PRONOUNCEMENT : : 14 .08 .2019 / ORDER PER R.S. SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) , PUNE - 5, PUNE ON 24.08.2018 IN RE LATION TO THE ASSESSMENT YEAR 2010 - 11 . 2. BRIEFLY STATED , THE FACTS OF THE CASE ARE THAT THE AO GOT INFORMATION FROM MAHARASHTRA SALES TAX DEPARTMENT THAT THE A SSESSEE INDULGED IN THE HAWALA TRANSACTIONS AND WAS ONE OF 2 ITA NO. 1881 /PUN/20 18 A.Y. 2010 - 11 THE BENEFICIARIES . THE ASSESSEE WAS FOUND TO HAVE RECEIVED AN ENTRY AMOUNT ING TO RS.9,84,625/ - TOWARDS HAWALA PURCHASES FROM SWASTIK SALES AGENCY PVT. LTD. THE AO MADE ADDITION OF RS.2,46,156/ - , BEING , 25% OF THE TOTAL BOGUS PURCHASES OF RS.9,84,625/ - . THE LD. CIT(A) ENHANCED THE ADDITION TO THE AMOUNT OF ENTIRE BOGUS PURCHASES. 3 . I HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD. THE ISSUE OF BOGUS PURCHASES HAS RECENTLY CO ME UP FOR CONSIDERATION BEFORE THE HONBLE BOMBAY HIGH COURT IN PR.CIT VS. MOHOMMAD HAJI ADAM & CO. VIDE ITS JUDGMENT DATED 11 - 02 - 2019 IN ITA NO.1004 OF 2016 AND OTHERS , THE HONBLE JURISDICTIONAL HIGH COURT HAS HELD THAT NO AD HOC ADDITION OF BOGUS PURC HASES IS WARRANTED. RATHER THE ADDITION SHOULD BE MADE TO THE EXTENT OF DIFFERENCE BETWEEN THE GROSS PROFIT RATE ON GENUINE PURCHASES AND GROSS PROFIT RATE OF HAWALA PURCHASES. SUCH DETAILS ARE NOT READILY AVAILABLE WITH THE LD. AR AS WELL TO FACILITATE THE CALCULATION OF GROSS PROFIT RATES OF GENUINE AND HAWALA PURCHASES. UNDER THESE CIRCUMSTANCES, I SET - ASIDE THE IMPUGNED AND REMIT THE MATTER TO THE FILE OF THE AO FOR APPLYING THE RATIO LAID DOWN BY THE HONBLE J URISDICTIONAL HIGH COURT IN THE ABOVE NOTED CASE AND RECOMPUTE THE AMOUNT OF ADDITION, IF ANY, AFTER ALLOWING A REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 3 ITA NO. 1881 /PUN/20 18 A.Y. 2010 - 11 4 . IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRO NOUNCED ON 14 TH DAY OF AUGUST , 201 9 . SD/ - R . S . SYAL / VICE - PRESIDENT / PUNE; / DATED : 14 TH AUGUST , 201 9 . SB / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS), PUNE - 5, PUNE. 4. THE PR. CIT, PUNE - 4, PUNE. 5. , , - , / DR, ITAT, SMC BENCH, PUNE. 6. / GUARD FILE. // TRUE C O PY // / BY ORDER, / PRIVATE SECRETARY , / ITAT, PUNE . 4 ITA NO. 1881 /PUN/20 18 A.Y. 2010 - 11 * DATE 1 DRAFT DICTATED ON 14 .08 .201 9 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 14 .08 .2019 SR. PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR. PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR. PS/PS 7 DATE OF UPLOADING OF ORDER SR. PS/PS 8 FILE SENT TO BENCH CLERK SR. PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER