Sri Mulchand Jain, PALAMU V. ACIT,Circle-3, Ranchi

ITA 54/RAN/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9039 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 5 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 05-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: INDRAJIT SINGH
• Keywords: Bogus purchase
• Section: 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI, ECOURT, AT KOLKATA BEFORE SHRI S.S. GODARA, JM &DR. A.L.SAINI, AM ./ITA NO.54/RAN/2019 ( / ASSESSMENT YEAR:2011-12) SRI MULCHAND JAIN PROP. M/S M. S. TRADING COMPANY, NAYA BAZAR, ENGINNERING ROAD, DALTONGANJ, PALAMU, JHARKHAND- 822101 VS. ACIT, CIRCLE-3, RANCHI ./ ./PAN/GIR NO.: ACJPJ 8205 F (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI DEVESH PODDAR, ADVOCATE RESPONDENT BY :SHRI INDRAJIT SINGH, CIT DR / DATE OF HEARING : 13/07/2020 /DATE OF PRONOUNCEMENT : 31/07/2020 / O R D E R PER BENCH (ORAL): THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2011-12 IS DIRECTED AGAINST THE CIT(A)-JHARKHANDS ORDER DATED 06/12/2018 IN APPEAL NO. CIT(A), RANCHI/10196/2017-18 INVOLVING PROCEEDINGS U/S 14 3(3) R.W.S. 263 OF THE INCOME TAX ACT, 1961 ( IN SHORT THE ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE SOLE SUBSTANTIVE ISSUE THAT ARISES FOR OUR APT ADJUDICATION IN THE INSTANT CASE IS THAT OF CORRECTNESS OF BOGUS PURCHASES DISA LLOWANCE / ADDITION AMOUNTING TO RS. 7,19,078/- MADE IN BOTH THE LOWER PROCEEDING S. IT IS NOT IN DISPUTE THAT THE IMPUGNED DISALLOWANCE HAS BEEN MADE BECAUSE OF PROF IT THAT THE ASSESSEE HAS BEEN FOUND TO HAVE MADE BOGUS PURCHASES FROM HAWALA DEA LERS BASED IN MAHARASHTRA I.T.A NO.54/RAN/2019 SRI MULCHAND JAIN A.Y. 2011-12 PAGE | PAGE | PAGE | PAGE | 2 22 2 AFTER A DETAILED INVESTIGATION CARRIED OUT IN THE S AID STATE. IT IS ON THE STRENGTH OF THE SAID INVESTIGATION THAT THE ASSESSING OFFICER A S WELL AS CIT(A) HAVE DISALLOWED THE ASSESSEES ENTIRE PURCHASES WHEREAS THE CORRESP ONDING SALES ALREADY STAND ACCEPTED. WE QUOTE HONBLE BOMBAY HIGH COURT IN THE CASE OF PCIT VS. MOHD. HAJI ADAM IN ITA NO. 1013 OF 2016 DATED 11.02.2019 THAT ONLY THE PROFIT ELEMENT IN SUCH ALLEGED BOGUS PURCHASES HAS TO BE D ISALLOWED. WE THEREFORE DIRECT THE ASSESSING OFFICER TO ACCEPT ASSESSEES PROFIT @ 7% AS ALREADY DECLARED IN THE CONSEQUENTIAL COMPUTATION AS PER LAW. 3. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWE D IN ABOVE TERMS. ORDER PRONOUNCED IN THE COURT ON 31.07.2020 SD/- (A.L.SAINI) SD/- (S.S.GODARA) / ACCOUNTANT MEMBER / JUDICIAL MEMBER /KOLKATA; / DATE: 31 /07/2020 SB, SR.PS COPY OF THE ORDER FORWARDED TO: 1. SRI MULCHAND JAIN 2. ACIT, CIRCLE-3, RANCHI 3. C.I.T(A)- 4. C.I.T.- RANCHI 5. CIT(DR), RANCHI BENCH, RANCHI . 6. GUARD FILE. TRUE COPY BY ORDER ASSIST ANT REGISTRAR ITAT, RANCH I BENCH I.T.A NO.54/RAN/2019 SRI MULCHAND JAIN A.Y. 2011-12 PAGE | PAGE | PAGE | PAGE | 3 33 3