M/s. Srijan Control Drives Pvt.Ltd, Pune V. Deputy Commissioner of Income-tax, Circle - 6, Pune

ITA 589/PUN/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2488 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 15-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF PASSED
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO.589/PUN/2019 / ASSESSMENT YEAR : 2009-10 M/S. SRIJAN CONTROL DRIVES PVT. LTD., UNIT NO.25, ELECTRONIC COOPERATIVE ESTATE, PUNE SATARA ROAD, PUNE 411 009 PAN : AACCS3865L VS. DCIT, CIRCLE-6, PUNE (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSE D BY THE CIT(A)-13, PUNE ON 25-01-2019 IN RELATION TO THE ASSESSMENT YEAR 2009-10. 2. THE MAJOR ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF ADDITION AMOUNTING TO RS.8,64,884/- ON ACCOU NT OF BOGUS PURCHASES IN HAWALA TRANSACTIONS. APPELLANT BY SHRI KISHOR PHADKE RESPONDENT BY SHRI M.K. VERMA DATE OF HEARING 19-06-2019 DATE OF PRONOUNCEMENT 20 -06-2019 ITA NO.589/PUN/2019 M/S. SRIJAN CONTROL DRIVES PVT. LTD., 2 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE AO RECE IVED INFORMATION FROM DG INVESTIGATIONS, PUNE THAT ASSESSEE WAS FOUND TO HAVE RECORDED PURCHASES FROM HAWALA DEALERS TO THE TUNE OF RS. 8,64,884/-. ON BEING CALLED UPON TO SUBSTAN TIATE THE GENUINENESS OF THE TRANSACTION, NEITHER THE ASSESSEE NOR H IS REPRESENTATIVE TURNED UP. IN THE ABSENCE OF FURNISHING ANY EVIDENCE TO SUBSTANTIATE THE CLAIM, THE ASSESSING OFFICER (A O) MADE AN ADDITION OF RS.8,64,884/- @ 100% OF THE AMOUNT O F BOGUS PURCHASES. THE LD. CIT(A) COUNTENANCED THE VIE W TAKEN BY THE AO ON THIS SCORE. THUS, THE ASSESSEE HAS COME U P IN APPEAL BEFORE THE TRIBUNAL. 4. I HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE RELE VANT MATERIAL ON RECORD. THE ISSUE OF BOGUS PURCHASES HAS R ECENTLY 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 OTH ERS, THE HONBLE JURISDICTIONAL HIGH COURT HAS HELD THAT NO AD HOC ADDITION AT THE RATE OF 10% OF BOGUS PURCHASES IS WARRANTED . RATHER THE ADDITION SHOULD BE MADE TO THE EXTENT OF DIFFERENCE BETWEEN THE GROSS PROFIT RATE ON GENUINE PURCHASES AND G ROSS PROFIT RATE ON HAWALA PURCHASES. SUCH DETAILS ARE NOT READILY ITA NO.589/PUN/2019 M/S. SRIJAN CONTROL DRIVES PVT. LTD., 3 AVAILABLE WITH THE LD. AR AS WELL TO FACILITATE THE CALCULATION OF GROSS PROFIT RATES OF GENUINE AND HAWALA PURCHASES. UNDE R THESE CIRCUMSTANCES, I SET-ASIDE THE IMPUGNED ORDER AND REMIT THE MATTER TO THE FILE OF THE AO FOR APPLYING THE RATIO LAID DOWN BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE ABOVE NOTED CASE AND RECOMPUTE THE AMOUNT OF ADDITION, IF ANY, AFTER ALLOWING A REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH JUNE, 2019. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 20 TH JUNE, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-13, PUNE 4. THE PR. CIT-3, PUNE 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.589/PUN/2019 M/S. SRIJAN CONTROL DRIVES PVT. LTD., 4 DATE 1. DRAFT DICTATED ON 19-06-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 19-06-2019 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. *