Unnati Om Exports Pvt.Ltd,(Formerly Known as Sycamore Metal Craft Pvt.Ltd), Pune V. Income-tax Officer, Ward - 11(2), Pune

ITA 1913/PUN/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3359 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 18-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF PASSED
• Keywords: Bogus purchase; Accommodation entries

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO.1913/PUN/2018 / ASSESSMENT YEAR : 2011-12 UNNATI OM EXPORTS PVT. LTD., (FORMERLY KNOWN AS SYCAMORE METAL CRAFT PVT. LTD.), PLOT NO.37, TINY INDUSTRIAL ESTATE, KONDHWA, PISOLI ROAD, PUNE 411 048 PAN : AALCS5734K VS. ITO, WARD-11(2), PUNE (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSE D BY THE CIT(A)-8, PUNE ON 13-08-2018 IN RELATION TO THE ASSESSMENT YEAR 2011-12. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE ADDITION MADE BY THE ASSESSING OFFICER (AO) @ 25% OF BOG US PURCHASES. APPELLANT BY SHRI AKSHAY MALPANI RESPONDENT BY SHRI ACHAL SHARMA DATE OF HEARING 18-02-2019 DATE OF PRONOUNCEMENT 19-02-2019 ITA NO.1913/PUN/2018 UNNATI OM EXPORTS PVT. LTD., 2 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE AO RECEIVED INFORMATION FROM DG (INVESTIGATION), PUNE THAT THE ASSESSEE RECEIVED ACCOMMODATION ENTRIES FROM M/S. HIRANI METAL INDUSTRIES. NOTICE U/S.148 WAS ISSUED PURSUANT TO WHICH THE ADDITION @ 25% OF SUCH PURCHASES, AT RS.1,99,562/- W AS MADE. THE LD. CIT(A) SUSTAINED THE ADDITION. 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH TH E RELEVANT MATERIAL ON RECORD. IT IS SEEN THAT CASES OF SEVE RAL ASSESSEES WHO HAD OBTAINED BOGUS PURCHASES FROM SUCH PERSONS HAVE COME UP FOR CONSIDERATION BEFORE THE PUNE BENCHES OF THE TRIBUNAL. VIDE THE LEAD ORDER IN THE CASE O F M/S. CHHABI ELECTRICALS PVT. LTD. AND OTHERS VS. DCIT DATED 28-04-2017 IN ITA NO.795/PUN/2014 AND OTHERS, THE TRIBUNAL HAS MADE CERTAIN CATEGORIES. CATEGORY NO. IV OF THE SAID ORDER, WHICH IS GERMANE TO THE INSTANT APPEAL, PROVIDES AS UNDER : IV. THE NEXT INSTANCE IS THE CASE OF GOODS WHICH H AVE BEEN ADMITTEDLY SOLD BY THE HAWALA DEALER AND HAS BEEN RECE IVED BY THE ASSESSEE, WHO IN TURN HAD MAINTAINED QUANTITATI VE DETAILS AND ALSO EVIDENCE OF ITS MOVEMENT I.E. TRANSPORT ATION DETAILS AND QUALITY CONTROL DETAILS OF CONSUMPTION OF T HE SAID MATERIAL OR EXACT DETAILS OF SALE OF THE SAME CONSIGNME NT THROUGH SAME TRANSPORTER DIRECTLY TO THE PARTY, THEN THE TOTAL PURCHASES CANNOT BE ADDED IN THE HANDS OF ASSESSEE. HOWEVER, SINCE THE PURCHASES ARE MADE FROM THE GREY MARKET, SOME ESTIMATION NEEDS TO BE MADE IN THE HANDS OF ASS ESSEE. THE TRIBUNAL IN M/S. CHETAN ENTERPRISES VS. ACIT (SUPRA) HAS ALREADY HELD THAT THE ADDITION BE MADE BY ESTIMATING TH E ITA NO.1913/PUN/2018 UNNATI OM EXPORTS PVT. LTD., 3 SAME @ 10% OF THE ALLEGED HAWALA PURCHASES, OVER AND AB OVE THE GP SHOWN BY THE RESPECTIVE ASSESSEE. 5. GOING BY THE RATIO LAID DOWN IN THE CASE OF M/S. CHHABI ELECTRICALS PVT. LTD. AND OTHERS (SUPRA), WHICH HAS BEEN FOLLOWED IN ENUMERABLE CASES, I HOLD THAT THE ADDITION SHOULD HAVE BEEN SUSTAINED @10% OF ALLEGED HAWALA PURCHASES OVE R AND ABOVE THE NORMAL GP RATE SHOWN BY THE ASSESSEE. IN VIEW OF SUCH DECISIONS, I SET-ASIDE THE IMPUGNED ORDER AND D IRECT THE AO TO FIND OUT THE NORMAL GP RATE OF THE ASSESSEE FOR THE YE AR UNDER CONSIDERATION AND MAKE ADDITION @10% PLUS SUCH DETERMINED GP RATE, IN RESPECT OF SUCH BOGUS PURCHASE B ILLS. NEEDLESS TO SAY, THE ASSESSEE WILL BE GIVEN A REASONABLE OPPORTUNITY OF HEARING. 6. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH FEBRUARY, 2019 SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 19 TH FEBRUARY, 2019 ITA NO.1913/PUN/2018 UNNATI OM EXPORTS PVT. LTD., 4 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-8, PUNE 4. PR.CIT-1, PUNE 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR P RIVATE SECRETARY , / ITAT, PUNE DATE 1. DRAFT DICTATED ON 18-02-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 19-02-2019 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. *