ITO, WARD7(1), PUNE V. SHIVKUMAR SHARMA, PUNE

ITA 50/PUN/2020

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6789 (ITAT-PUNE)
• Duration Of Justice: 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2020
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 15-01-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: IS DIRECTED AGAINS T 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.50/PUN/2020 / ASSESSMENT YEAR : 2010-11 ITO, WARD-7(1), PUNE VS. SHRI SHIVKUMAR SHARMA, 109, AKSHAY COMPLEX, DHOLE PATIL ROAD, PUNE 411 001 PAN : AHOPS2177H (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A)-5, PUNE ON 10-10-2019 IN RELATION TO THE ASSESSMENT YEAR 2010-11. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE DELETION OF PART ADDITION MADE BY THE ASSESSING OFFICER (AO) BY TREATING PURCHASES MADE FROM TWO SUPPLIERS AS BOGUS ON THE APPELLANT BY SMT. VRANDA U. MATKARI RESPONDENT BY NONE DATE OF HEARING 07-02-2020 DATE OF PRONOUNCEMENT 07-02-2020 ITA NO.50/PUN/2020 SHIVKUMAR SHARMA 2 BASIS OF SOME INFORMATION RECEIVED FROM SALES TAX DEPARTM ENT AND LAW ENFORCEMENT AGENCIES. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE AO FOUN D THE ASSESSEE TO HAVE RECORDED PURCHASES, INTER ALIA, FROM TWO PARTIES, NAMELY, M/S. YASH IMPEX AND M/S. BALAJI TRADERS TOTALING TO RS.7,39,688/-. THE SAME WERE HELD TO BE NOT GENUINE AS PER THE INFORMATION RECEIVED FROM SALES TAX DEPARTMENT. THE AO, THEREFORE, MADE AN ADDITION EQUAL TO THE AMOUNT OF PURCHASES AT RS.7,39,688/-. THE LD. CIT(A) DIRECTED THE AO TO RESTRICT THE ADDITION TO RS.92,461/-, BEING, PROFIT ELEMENT AT 12.5% ON THE SAID PURCHASE AMOUNT. THE REVEN UE IS AGGRIEVED BY THE PART DELETION OF ADDITION. 4. I HAVE HEARD THE LD. DR AND PERUSED THE RELEVANT MATE RIAL ON RECORD. THERE IS NO APPEARANCE FOR THE SIDE OF TH E ASSESSEE. I AM, THEREFORE PROCEEDING TO DISPOSE OF THE APPEAL EX PARTE QUA THE ASSESSEE. 5. IT IS SEEN THAT CASES OF SEVERAL ASSESSEES WHO HA D OBTAINED BOGUS PURCHASE BILLS FROM HAWALA PARTIES CAME UP F OR CONSIDERATION BEFORE THE PUNE BENCHES OF THE TRIBUNAL. VIDE ITA NO.50/PUN/2020 SHIVKUMAR SHARMA 3 ITS COMMON ORDER DATED 26.9.2019 IN DINESH RATHI VS. DCIT (ITA NO. 975/PUN/2018) AND OTHERS, THE TRIBUNAL HAS RESTORE D THIS ISSUE TO THE FILE OF THE AO BY OBSERVING IN PARA NO. 11 AS UNDER : - `NOW WE TURN TO THE MERITS OF THE CASES. THE ASSAIL IS TO THE MAKING OF ADDITION(S) ON THE BASIS OF BOGUS PURCHASE BILLS RECEIVED BY THE ASSESSEE(S) AS ACCOMMODATION ENTRIES FROM HAWALA DEALERS. IT IS SEEN THAT THE ISSUE OF BOGUS PURCHASES HAS RECENTLY COME 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 FOR BOGUS PURCHASES SHOULD BE MADE. IT LAID DOWN THAT THE ADDITION SHOULD BE MADE TO THE EXTENT OF DIFFERENCE BETWEEN THE GROSS PROFIT RATE ON GENUINE PURCHASES AND GROSS PROFIT RATE ON HAWALA PURCHASES. SUCH CASE SPECIFIC DETAILS ARE NOT READILY AVAILABLE WITH THE RESPECTIVE LD. ARS OR THE LD. DRS FOR FACILITATING THE CALCULATION OF GROSS PROFIT RATES OF GENUINE AND HAWALA PURCHASES. UNDER THESE CIRCUMSTANCES, WE SET-ASIDE THE IMPUGNED ORDERS AND REMIT THE MATTER TO THE FILE OF THE RESPECTIVE AOS FOR APPLYING THE RATIO LAID DOWN BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE ABOVE NOTED CASE AND RECOMPUTE THE AMOUNT OF ADDITIONS, IF ANY, AFTER ALLOWING A REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 6. IN THE LIGHT OF THE ABOVE DECISION TAKEN BY THE PUNE BENCHES OF THE TRIBUNAL IN SEVERAL SIMILAR CASES, I SET-AS IDE THE IMPUGNED ORDER AND REMIT THE MATTER TO THE FILE OF THE AO FOR DECIDING IT IN CONFORMITY WITH THE ABOVE DIRECTIONS. IN THE ITA NO.50/PUN/2020 SHIVKUMAR SHARMA 4 ABSENCE OF NOTICE OF ANY APPEAL FILED BY THE ASSESSEE, TH E AMOUNT OF RELIEF IS DIRECTED NOT TO EXCEED THE EXTENT AS ALLOWE D BY THE LD. CIT(A). 7. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 07 TH FEBRUARY, 2020. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 07 TH FEBRUARY, 2020 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-5, PUNE 4. THE PR. CIT-4, PUNE 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.50/PUN/2020 SHIVKUMAR SHARMA 5 DATE 1. DRAFT DICTATED ON 07-02-2020 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 07-02-2020 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. *