Harsh Tobacco Pvt. Ltd., Ahmedabad V. The Dy.CIT, Circle-2(1)(1), Ahmedabad

ITA 3639/AHD/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8280 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 29-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR JAYANT JHAVERI
• Keywords: Bogus purchase; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH (BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 3639/AHD/2015 (ASSESSMENT YEAR: 2012-13) HARSH TOBACCO PVT. LTD. 88, AJANTA COMMERCIAL CENTRE, INCOME TAX CHAR RASTA, AHMEDABAD- 380009 V/S DCIT, CIRCLE-2(1)(1), AHMEDABAD (APPELLANT) (RESPONDENT) PAN: AACCH4439B APPELLANT BY : SHRI VIVEK CHAVDA, AR RESPONDENT BY : DR. JAYANT JHAVERI, SR. D.R. ( )/ ORDER DATE OF HEARING : 08 -05-201 8 DATE OF PRONOUNCEMENT : 11-05-2018 PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-2, AHMEDABAD DATED 02.11.2015 PERTAINING TO A.Y. 2012- 13 AND FOLLOWING GROUNDS HAVE BEEN TAKEN. ITA NO. 3639 /AHD/2015 . A.Y. 2012- 13 2 1. THE ORDER PASSED U/S.250 ON 02/11/2015 FOR A.Y.20 12-13 BY CIT(A) UPHOLDING THE ADDITION OF RS.11.50 LAKH AS BOGUS PU RCHASES MADE BY AO IS WHOLLY ILLEGAL, UNLAWFUL AND AGAINST THE PRINCIPLES OF NATURAL JUSTICE. 2. DURING THE COURSE OF SCRUTINY, THE ASSESSEE SUBMITT ED LEDGER ACCOUNTS IN RESPECT OF PURCHASES MADE DURING THE YEAR AND DETAILS OF SU NDRY CREDITORS. IN THIS REGARD, ON-LINE VERIFICATION FROM THE OFFICIAL WEB- SITE OF GUJARAT AND OTHER STATES COMMERCIAL TAX DEPARTMENT WAS CARRIED OUT BY THE LD. A.O. SO AS TO ASCERTAIN THE EXISTENCE OF THE PARTIES FROM WHOM TH E PURCHASES WERE MADE BY THE APPELLANT DURING THE YEAR. ON VERIFICATION OF O N-LINE DETAILS FROM THE OFFICIAL WEBSITE OF GUJARAT COMMERCIAL TAX DEPARTMENT, IT IS FOUND THAT REGISTRATION NO. 24560303920 PERTAINING TO M/S. JADEJA ENTERPRIS ES GOT CANCELLED WITH EFFECT FROM 30.03.2011. THEREFORE, THIS PARTY CANNO T BE HELD AS EXISTENT/GENUINE PARTY AND HENCE ANY TRANSACTION CA RRIED OUT BY THE APPELLANT WITH M/S. JADEJA ENTERPRISE CANNOT BE HELD AS GENUI NE AS ASSESSEE HAD MADE PURCHASE OF RS. 1150000/- FROM M/S. . JADEJA ENTERP RISES AD SAME IS MENTIONED AT PAGE NO. 93 (COPY OF LEDGER IN THE BOO KS OF ACCOUNT OF THE ASSESSEE) AS REGISTRATION OF M/S. JADEJA ENTERPRIS ES WAS CANCELLED. THEREFORE, ASSESSING OFFICER HAS HELD PURCHASE OF RS. 1150000/ - AS BOGUS AND ADDED TO THE TOTAL INCOME OF THE APPELLANT. 3. AGAINST THE SAID ORDER, APPELLANT PREFERRED FIRST S TATUTORY APPEAL BEFORE THE LD. CIT(A) BUT TO NO AVAIL. 4. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE RELEVANT RECORDS. IN THIS FOUND, LD. A.O. CARRIED OUT ON-LINE VERIFICATION FR OM THE WEB-SITE OF VAT/SALES TAX DEPARTMENT FOR THE PURCHASES CLAIMED BY THE APP ELLANT. HE NOTICED THAT THE ITA NO. 3639 /AHD/2015 . A.Y. 2012- 13 3 REGISTRATION WITH VAT DEPARTMENT OF ONE OF THE PART IES FROM WHOM THE APPELLANT MADE PURCHASES WAS CANCELLED. THE A.O. CO MMUNICATED THE SAME TO THE AR AND ASKED TO PROVE THE GENUINENESS OF THE PU RCHASE TRANSACTION WITH M/S. JADEJA ENTERPRISES. IN SUPPORT OF ITS CONTENTI ON, ASSESSEE FILED NAME AND ADDRESS, VAT NUMBER (TIN) LEDGER ACCOUNT AND ALSO F URNISHED THE QUANTITATIVE DETAILS OF PRODUCTION BY WAY OF PRODUCING EXCISE R EGISTERS WHICH RECONCILES THE PURCHASE, PRODUCTION AND SALES AND ABOVE SAID P URCHASE WAS MADE THROUGH BANKING CHANNELS AND LOWER AUTHORITY HAS NOT FOUND ANY IRREGULARITY EITHER IN THE BOOKS OF ACCOUNTS OR POINTED OUT ANY DEFECT IN THE SAME. 5. IN SUPPORT OF ITS CONTENTION, LD. A.R. CITED AN ORD ER OF MUMBAI BENCH IN THE CASE OF ITO VS. PARESH ARVIND GANDHI IN ITA NO. 570 6/MUM/2013 IN WHICH IT WAS HELD THAT EVEN IN THE CASE THAT THE ALLEGED PARTIES BY THE VAT DEPARTMENT AS ENTRY PROVIDER AND IN ABSENCE OF ANY CORROBORATI VE EVIDENCE AGAINST THE APPELLANT WHEN PAYMENTS ARE MADE THROUGH BANKING CH ANNEL, THE ADDITION AS BOGUS PURCHASES CANNOT BE MADE. IN VIEW OF THE FORE GOING DISCUSSION, WE ALLOW THE APPEAL OF THE APPELLANT. 6. IN THE RESULT, THE APPEAL FILED BY THE APPELLANT IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 11 - 05- 2018 SD/- SD/- (WASEEM AHMED) (MAHAVIR PRASAD) ACCOUNTANT MEMBER TRUE COPY JUDICIAL MEMBER AHMEDABAD: DATED 11/05/2018 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT.