M/s. Aniket Trading Company, Nashik V. Deputy Commissioner of Income tax, Nashik

ITA 466/PUN/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1522 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 23-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: IS DIRECTED AGAINS T PASSED
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER . / ITA NO.466/PUN/2017 / ASSESSMENT YEARS : 2009-10 M/S. ANIKET TRADING COMPANY, 8 & 9, TIP TOP PLAZA, XLO POINT, AMBAD LINK ROAD, NASHIK 422 010 PAN : AAGFA0380D VS. DCIT, CIRCLE-1, NASHIK (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A)-1, NASHIK ON 01-12-2016 IN RELATION TO THE ASSESSMENT YEAR 2009-10. 2. THE ONLY ISSUE RAISED IN THIS APPEAL THROUGH VARIOUS GR OUNDS IS AGAINST THE CONFIRMATION OF ADDITION OF RS.36,94,012/- MA DE BY THE ASSESSING OFFICER BY DISALLOWING ENTIRE PURCHASES MADE THROUGH TWO HAWALA PARTIES ON THE BASIS OF INFORMATION RECE IVED APPELLANT BY SHRI SANKET JOSHI RESPONDENT BY SHRI PANKAJ GARG DATE OF HEARING 14-03-2019 DATE OF PRONOUNCEMENT 15 -03-2019 ITA NO.466/PUN/2017 M/S. ANIKET TRADING COMPANY 2 FROM SALES TAX DEPARTMENT. THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH TH E RELEVANT MATERIAL ON RECORD. IT IS SEEN THAT CASES OF SEV ERAL ASSESSEES WHO HAD OBTAINED BOGUS PURCHASES FROM HAWALA DEALERS HAVE COME UP FOR CONSIDERATION BEFORE THE PUNE BENCHES O F THE TRIBUNAL. VIDE THE LEAD ORDER IN THE CASE OF 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 HA VE BEEN ADMITTEDLY SOLD BY THE HAWALA DEALER AND HAS BEEN RECEIVED BY THE ASSESSEE, WHO IN TURN HAD MAINTAINED QUANTITATIVE DETAI LS AND ALSO EVIDENCE OF ITS MOVEMENT I.E. TRANSPORTATION DETAILS A ND QUALITY CONTROL DETAILS OF CONSUMPTION OF THE SAID MATERIAL OR EXACT DETAILS OF SALE OF THE SAME CONSIGNMENT THROUGH SAME TRANSPOR TER DIRECTLY TO THE PARTY, THEN THE TOTAL PURCHASES CANNOT BE ADDED IN THE HANDS OF ASSESSEE. HOWEVER, SINCE THE PURCHASES ARE MADE F ROM THE GREY MARKET, SOME ESTIMATION NEEDS TO BE MADE IN THE HANDS OF ASSESSEE. THE TRIBUNAL IN M/S. CHETAN ENTERPRISES VS. A CIT (SUPRA) HAS ALREADY HELD THAT THE ADDITION BE MADE BY ES TIMATING THE SAME @ 10% OF THE ALLEGED HAWALA PURCHASES, OVER AND ABOVE THE GP SHOWN BY THE RESPECTIVE ASSESSEE. 4. GOING BY THE RATIO LAID DOWN IN THE CASE OF M/S. CHHABI ELECTRICALS PVT. LTD. AND OTHERS (SUPRA), WHICH HAS BEEN F OLLOWED IN ENUMERABLE NUMBER OF CASES, WE HOLD THAT THE ADDITION SHOULD HAVE ITA NO.466/PUN/2017 M/S. ANIKET TRADING COMPANY 3 BEEN SUSTAINED @10% OF ALLEGED HAWALA PURCHASES OVER AND OVER THE NORMAL GP RATE SHOWN BY THE ASSESSEE. 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH MARCH, 2019. SD/- SD/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VI CE PRESIDENT PUNE; DATED : 15 TH MARCH, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT(A)-1, NASHIK 4. 5. 6. THE PR. CIT-1, NASHIK , , / DR B, ITAT, PUNE; / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR P RIVATE SECRETARY , / ITAT, PUNE ITA NO.466/PUN/2017 M/S. ANIKET TRADING COMPANY 4 DATE 1. DRAFT DICTATED ON 14-03-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 14-03-2019 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. *