Ram Engineering Concern, Howra V. ITO, Ward-48(2), Kolkata

ITA 477/KOL/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2827 (ITAT-KOLKATA)
• Duration Of Justice: 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 17-06-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 17-08-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA
• Keywords: Bogus purchase; Accommodation entries
• Section: 22; 148

Judgement Text

ITA NO. 477/KOL/2020 A.Y. 20 13-2014 RAMA ENGINEERING CONCERN 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA C(SMC) BENCH, KOLKATA [VIRTUAL COURT HEARING] BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT I.T.A. NO. 477/KOL/2020 ASSESSMENT YEAR: 2013-2014 RAMA ENGINEERING CONCERN,.......................... ..................APPELLANT 37/1, SATKARI CHATTERJEE LANE, BANTRA, HOWRAH-711101 [PAN:AAMFR7477A] -VS.- INCOME TAX OFFICER,................................ ............................RESPONDENT WARD-48(2), KOLKATA, 3, GOVERNMENT PLACE (WEST), 1 ST FLOOR, KOLKATA-700001 APPEARANCES BY: NONE, APPEARED ON BEHALF OF THE ASSESSEE SHRI JAYANTA KHANRA, JCIT , APPEARED ON BEHALF OF THE REVENUE DATE OF CONCLUDING THE HEARING : JUNE 17, 2021 DATE OF PRONOUNCING THE ORDER : JUNE 17, 2021 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-14, KOLKAT A DATED 21.01.2020. 2. THE ASSESSEE IN THE PRESENT CASE IS A PARTNERSHI P FIRM, WHICH IS ENGAGED IN THE BUSINESS OF TRADING. THE RETURN OF I NCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ORIGINALLY ON 0 3.10.2013 DECLARING TOTAL INCOME OF RS.1,12,725/-. ON THE BASIS OF INFO RMATION RECEIVED REGARDING THE ACCOMMODATION ENTRIES ALLEGEDLY RECEI VED BY THE ASSESSEE IN THE FORM OF BOGUS PURCHASE BILLS, THE ASSESSMENT FOR THE YEAR UNDER CONSIDERATION WAS REOPENED BY THE ASSESSING OFFICER AND A NOTICE UNDER SECTION 148 WAS ISSUED BY HIM TO THE ASSESSEE ON 22 .03.2018 AFTER RECORDING THE REASONS WITH PRIOR APPROVAL FROM THE CONCERNED COMMISSIONER. IN PURSUANCE OF THE SAID NOTICE, ASSE SSMENT WAS COMPLETED ITA NO. 477/KOL/2020 A.Y. 20 13-2014 RAMA ENGINEERING CONCERN 2 BY THE ASSESSING OFFICER UNDER SECTION 143(3)/147 O F THE ACT VIDE AN ORDER DATED 18.12.2018 MAKING AN ADDITION OF RS.40, 44,480/- TO THE TOTAL INCOME OF THE ASSESSEE ON ACCOUNT OF BOGUS PURCHASE S ALLEGEDLY MADE FROM M/S. DURGA COMMODEAL PVT. LIMITED AND M/S. MET AL ALLOY SYNDICATE. 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 143(3)/147 OF THE ACT, AN APPEAL WAS PREFERRED BY T HE ASSESSEE BEFORE THE LD. CIT(APPEALS) CHALLENGING THE VALIDITY OF TH E SAID ASSESSMENT AS WELL AS DISPUTING THE ADDITION OF RS.40,44,480/- MA DE THEREIN ON ACCOUNT OF ALLEGED BOGUS PURCHASES. THE LD. CIT(APPEALS) DI D NOT FIND MERIT IN THE SUBMISSIONS MADE ON BEHALF OF THE ASSESSEE IN SUPP ORT OF THE PRELIMINARY ISSUE RAISED RELATING TO THE VALIDITY OF THE ASSESS MENT MADE BY THE ASSESSING OFFICER UNDER SECTION 143(3)/147 OF THE A CT AND REJECTING THE SAME, HE UPHELD THE VALIDITY OF THE SAID ASSESSMENT . AS REGARDS THE ADDITION OF RS.40,44,480/- MADE BY THE ASSESSING OF FICER ON ACCOUNT OF THE ALLEGED BOGUS PURCHASES, THE LD. CIT(APPEALS) H ELD THAT THE ENTIRE AMOUNT OF BOGUS PURCHASES COULD NOT BE TREATED AS I NCOME OF THE ASSESSEE AND IT WOULD BE FAIR AND REASONABLE TO RESTRICT THE ADDITION ONLY TO THE EXTENT OF PROFIT EMBEDDED IN SUCH BOGUS PURCHASES. HE ACCORDINGLY ESTIMATED SUCH PROFIT AT 10% AND RESTRICTED THE ADD ITION MADE BY THE ASSESSING OFFICER ON THIS ISSUE TO RS.4,04,484/-. S TILL AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PRE FERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING FIXED IN THIS CASE TODAY, NONE HAS APPEARED ON BEHALF OF THE ASSESSEE. IT IS NOTED THAT THERE W AS SIMILAR NON- COMPLIANCE ON THE PART OF THE ASSESSEE WHEN THIS AP PEAL WAS FIXED FOR HEARING BEFORE THE TRIBUNAL EARLIER ON 17.12.2020, 28.01.2021, 18.02.2021, 08.04.2021 AND 13.05.2021. IT IS ALSO N OTED THAT THERE IS A DELAY OF 149 DAYS ON THE PART OF THE ASSESSEE IN FI LING THIS APPEAL BEFORE THE TRIBUNAL AND DESPITE ISSUING DEFECTIVE NOTICE O N 01.09.2020, THE ASSESSEE HAS NOT REMOVED THE SAID DEFECT BY FILING AN APPLICATION SEEKING ITA NO. 477/KOL/2020 A.Y. 20 13-2014 RAMA ENGINEERING CONCERN 3 CONDONATION OF THE SAID DELAY TILL DATE. KEEPING IN VIEW ALL THESE FACTS OF THE CASE, I TREAT THIS APPEAL AS BARRED BY LIMITATI ON AND DISMISS THE SAME AT THE THRESHOLD. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON JUNE 17, 2021 . SD/- (P.M. JAGTAP) VICE-PRESIDENT KOLKATA, THE 17 TH DAY OF JUNE, 2021 COPIES TO : (1) RAMA ENGINEERING CONCERN, 37/1, SATKARI CHATTERJEE LANE, BANTRA, HOWRAH-711101 (2) INCOME TAX OFFICER, WARD-48(2), KOLKATA, 3, GOVERNMENT PLACE (WEST), 1 ST FLOOR, KOLKATA-700001 (3) COMMISSIONER OF INCOME TAX (APPEALS)-14, KOLK ATA, (4) COMMISSIONER OF INCOME TAX , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER SR. PRIVATE SECRETARY/DDO, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.