M/s. Bhawarlal Alok Kumar , Kolkata V. ACIT, Circle - 34, Kolkata , Kolkata

ITA 732/KOL/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5079 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 18-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAL
• Assessee Lawyers: P R KOTHARI
• Keywords: Bogus purchase; Business income; Assessment record

Judgement Text

1 ITA NO. 732/KOL/2018 M/S. BHAWARLAL ALOK KUMAR, A Y- 2014-15 , C , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA ( ) . . , . ' # $% % , '( ) [BEFORE SHRI A. T. VARKEY, JM & DR. A. L. SAINI, A M] I.T.A. NO. 732/KOL/2018 ASSESSMENT YEAR: 2014-15 M/S. BHAWARLAL ALOK KUMAR (PAN: AADFB0620N) VS. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-34, KOLKATA APPELLANT RESPONDENT DATE OF HEARING 23.09.2019 DATE OF PRONOUNCEMENT 06.11.2019 FOR THE APPELLANT SHRI P. R. KOTHARI, FCA FOR THE RESPONDENT SHRI SUPRIYO PAL, JCIT, SR. DR ORDER PER SHRI A.T.VARKEY, JM THIS APPEAL PREFERRED BY THE ASSESSEE IS AGAINST TH E ORDER OF THE LD. CIT(A)-10, KOLKATA DATED 23.01.2018 FOR AY 2014-15. 2. AT THE OUTSET ITSELF, THE LD. COUNSEL FOR THE AS SESSEE DREW OUR ATTENTION TO THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE WHICH IS AS UNDER: 1. AGAINST SUSTAINING THE ADDITION TO THE EXTENT O F RS.48,34,000/- ON ACCOUNT OF ALLEGED BOGUS PURCHASES. A) FOR THAT ON FACTS AND CIRCUMSTANCES OF CASE AND IN LAW, THE LD. COMMISSIONER OF INCOME TAX (APPEALS) (CIT(A) ERRED IN SUSTAINING THE ADDITION TO THE EXTENT OF RS.48,34,000/- OUT OF ADDITION OF RS.3,22,28,000/- MADE BY LD. ASSESSING OFFICER ON A CCOUNT OF ALLEGED BOGUS PURCHASES. B) FOR THAT ON FACTS AND CIRCUMSTANCES OF CASE AND IN LAW, THE LD. CIT(A) ERRED IN OBSERVING THAT PURCHASES HAVE BEEN MADE BY APPELLANT FROM THE ALLE GED GREY MARKET FROM PARTIES OTHER THAN THOSE MENTIONED IN THE BOOKS OF ACCOUNTS. 3. THEREAFTER, THE LD. COUNSEL FOR THE ASSESSEE FAI RLY DREW OUR ATTENTION TO THE FACT THAT AGAINST THE VERY SAME IMPUGNED ORDER OF THE LD. CIT (A)-10, KOLKATA DATED 23.01.2018, THE REVENUE HAD ALSO PREFERRED AN APPEAL IN WHICH THE T RIBUNAL HAS ALREADY PASSED AN ORDER IN ITA NO.779/KOL/2018 FOR AY 2014-15 WHEREIN THE GROU NDS OF APPEAL AS NOTED BY THE TRIBUNAL IS AS UNDER: 2 ITA NO. 732/KOL/2018 M/S. BHAWARLAL ALOK KUMAR, A Y- 2014-15 2. REVENUES SOLE SUBSTANTIVE GRIEVANCE RAISED IN THE INSTANT APPEAL SEEKS TO CHALLENGE CORRECTNESS OF CIT(A)S ACTION PARTLY UPHOLDING ASS ESSING OFFICERS FINDINGS DISALLOWING ASSESSEES PURCHASE(S) OF RS.3,22,28,000/- ONLY TO THE EXTENT OF 15% VIDE IMPUGNED FOLLOWING DETAILED DISCUSSION. 4. AFTER PERUSING THE ORDER OF THE TRIBUNAL DATED 0 3.05.2018 IN THE REVENUE APPEAL AGAINST THE ASSESSEE WHICH IS AGAINST THE VERY SAME IMPUGNED ORDER OF THE LD. CIT(A)-10, KOLKATA, WE NOTE THAT THE REVENUE HAD ALSO PREFERRE D CROSS APPEAL AGAINST THE ACTION OF THE LD. CIT(A) WHICH HAS BEEN DISMISSED AND THUS, THE A CTION OF THE LD. CIT(A) HAS BEEN UPHELD ON THE VERY SAME ISSUE WHICH THE ASSESSEE HA S ASSAILED BEFORE US. WE NOTE THAT THE TRIBUNAL HAS DECIDED THE APPEAL BY OBSERVING AS UND ER: 3. MR. CHOUDHURY VEHEMENTLY CONTENDS DURING THE C OURSE OF HEARING THAT THE CIT(A) HAS ERRED IN LAW AS WELL AS ON FACTS IN PARTLY CONFIRMI NG THE ASSESSING OFFICERS ACTION TO THE EXTENT 15% GROSS PROFIT ELEMENT IN ASSESSEES PURCH ASES. HE REITERATES THE ASSESSMENT FINDINGS THAT THE ASSESSEE COULD NOT PROVE HIS PURCHASES IN ISSUE BY WAY OF THE RELEVANT SUPPORTIVE EVIDENCE DURING THE COURSE OF ASSESSMENT AND ALSO T HAT THE ASSESSING OFFICER COULD NOT VERIFY THE IMPUGNED PURCHASE DESPITE AFFORDING AMPLE OPPO RTUNITIES TO THE TAXPAYER. WE FIND NO MERIT IN REVENUES INSTANT ARGUMENTS CHALLENGES COR RECTNESS OF CIT(A)S ACTION PARTLY CONFIRMING THE IMPUGNED PURCHASE DISALLOWANCE TO TH E EXTENT OF 15% THEN IN ENTERITY. IT HAS COME ON RECORD THAT CIT(A) HAS DISALLOWED ONLY 15% PORTION IN ASSESSEES PURCHASES DESPITE THE FACT THE LATTER HAD PLACED ON RECORD ALL THE RE LEVANT DETAILS / EVIDENCE IN SUPPORT OF ITS CLAIM RIGHT FROM THE VERY BEGINNING IN THE NATURE O F SUPPLIERS PANS, BANK ACCOUNTS, LEDGERS, ASSESSMENT RECORDS ETC. BEFORE THE ASSESSING OFFICE R. COUPLED WITH THIS, THE FACT ALSO REMAINS THAT THE REVENUE ITSELF HAS ACCEPTED THE ASSESSEES CORRESPONDING SALES AS CORRECT GIVING RISE TO ITS BUSINESS INCOME IN MANUFACTURING / TRADING ACTI VITIES IN ISSUE. WE FURTHER FIND THAT THE CIT(A)S DISCUSSION HAS TAKEN INTO CONSIDERATION VA RIOUS CORRESPONDING JUDICIAL PRECEDENTS RESTRICTING PURCHASE DISALLOWANCE TO THE EXTENT PRO FIT RATIO / REASONABLE AD HOC FIGURE IN THE GIVEN FACTS. WE CONCLUDE IN THESE PECULIAR FACTS AN D CIRCUMSTANCES THAT THE CIT(A) HAS RIGHTLY DISALLOWED ONLY THE PROFIT @ 15% OF THE ASSESSEES PURCHASES THAN CONCURRING WITH THE ASSESSING OFFICERS ACTION DECLINING ENTIRE PURCHAS ES. THIS REVENUES SOLE GRIEVANCE FAILS THEREFORE. 5. THUS, WE NOTE THAT THE ISSUE CANVASSED BEFORE US HAVE BEEN ANSWERED/ADJUDICATED BY THE TRIBUNAL AS (SUPRA). SO, WE DISMISS THE APPEAL OF THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS DISMISS ED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 6TH NOVE MBER, 2019. SD/- SD/- (DR. A. L. SAINI) (ABY. T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED :6TH NOVEMBER, 2019 JD.(SR.P.S.) 3 ITA NO. 732/KOL/2018 M/S. BHAWARLAL ALOK KUMAR, A Y- 2014-15 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT M/S. BHAWARLAL ALOK KUMAR, P-12, NEW HOWRAH BRIDGE APPROACH ROAD, 4 TH FLOOR, KOLKATA-700 001. 2 RESPONDENT ACIT, CIRCLE-34, KOLKATA 3. 4. 5. CIT(A)-10, KOLKATA. CIT , KOLKATA DR, ITAT, KOLKATA. (SENT THROUGH E-MAIL) / TRUE COPY, BY ORDER, ASSISTANT REGISTRAR