ITO, Jaipur V. VALENTINE SILVER INTERNATIONAL, Jaipur

ITA 898/JPR/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5216 (ITAT-JAIPUR)
• Duration Of Justice: 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 04-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAGHUVIR SINGH DUGAR
• Assessee Lawyers: GULSHAN AGARWAL CA DHK
• Keywords: Bogus purchase; Tax effect
• Section: 10AA

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS [KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YAD AV, AM VK;DJ VIHY LA-@ ITA NO. 898/JP/2015 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2011-12. THE INCOME TAX OFFICER, WARD 7(2) JAIPUR. CUKE VS. M/S. VALENTINE SILVER INTERNATIONAL, G-122, SPECIAL ECONOMIC ZONE, SITAPURA INDUSTRIAL AREA, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAFFV 7716 D VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAGHUVIR SINGH DUGAR (ADDL.CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI GULSHAN AGARWAL (CA) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 02.06.2016. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 13/06/2016. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER OF LD. CIT (APPEALS)-3, JAIPUR DATED 30.09.2015 PERTAINING TO A.Y. 2011-12. THE R EVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- I. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT (A) HAS ERRED IN RESTRICTING THE ADDITION FROM 25% TO 1 5% OF THE PURCHASES OF RS. 1,19,98,012/- IGNORING THE FACT TH AT THE PURCHASES OF RS. 1,19,98,012/- WERE BOGUS AND THAT THE ASSESSEE HAD OBTAINED ACCOMMODATION BILLS ONLY. II. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT (A) HAS ERRED IN RESTRICTING THE ADDITION ON ACCOUNT OF BOGUS PURCHASES MADE BY THE AO ON THE BASIS OF THE DECISI ON IN THE CASE OF SANJAY OIL CAKE INDUSTRIES VS. CIT 10 DRT ( GUJ.) 153 (2008) IGNORING THE FACT THAT EVEN THE ASSESSEE HAD OBTAINED ACCOMMODATION BILLS FROM THE SELLERS WHICH WERE EXI STING ON PAPER AS IN THE CASE OF SANJAY OIL CAKE INDUSTRIES. III. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT (A) HAS ERRED IN RESTRICTING THE ADDITION ON ACCOUNT OF BOGUS PURCHASES MADE BY THE AO BY RELYING UPON ITAT DECIS ION IN THE 2 ITA NO. 898/JP/2015 ITO VS. M/S. VALENTINE SILVER INTERNATIONAL CASE OF ANUJ KUMAR VARSHANEY VS. ITO, WARD 5(4), JA IPUR IN ITA NO. 187/JP/2012, DATED 22.10.2014 WITHOUT ELABORATI NG HOW THE DECISION WAS APPLICABLE TO THE FACT OF THE CASE OF THE ASSESSEE. IV. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT (A) HAS ERRED IN DIRECTING TO ALLOW DEDUCTION U/S 10AA ON THE 15% CONFIRMED THE ADDITION OF BOGUS PURCHASES IGNORING THE FACT THE AO MADE THE ADDITION AS UNEXPLAINED INCOME OF THE A SSESSEE, AS PER PARA 5 OF THE ASSESSMENT ORDER. 2. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE POINTED OUT THAT THE APPEAL IS NOT MAINTAINABLE AS THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS BELOW THE LIMIT PRESCRIBED VIDE CBDT CIRCULAR NO. 21 OF 2015 (F. NO . 279/MISC.142/2007-ITJ (PT.) DATED 10.12.2015. THE LD. D/R HAS ACCEDED THAT TA X EFFECT INVOLVED IS LOWER THAN THE MONETARY LIMIT PRESCRIBED BY THE CBDT. ACCORDI NG WE DISMISS THE APPEAL OF THE REVENUE AS NOT MAINTAINABLE. 3. IN THE RESULT, APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13/06/201 6. SD/- SD/- FOE FLAG ;KNO ( DQY HKKJR ) (VIKRAM SINGH YADAV) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 13/06/2016. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ITO WARD 7(2), JAIPUR. 2. THE RESPONDENT- M/S. VALENTINE SILVER INTERNATIO NAL, JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 898/JP/2015) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 3 ITA NO. 898/JP/2015 ITO VS. M/S. VALENTINE SILVER INTERNATIONAL