Pneumatic Tools Enterprise, Kolkata V. I.T.O.,Ward-44(4), Kolkata

ITA 93/KOL/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 9501 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-03-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 28-01-2021
• Assessment Year: 2010-2011
• Appeal Filed On: 22-01-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA JCITSRDR
• Assessee Lawyers: MANISHA PATWARI ACA
• Keywords: Accommodation entries

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC KOLKATA SHRI SANJAY GARG, JUDICIAL MEMBER . /ITA NO.93/KOL/2020 ASSESSMENT YEAR:2010-11 PNEUMATIC TOOLS ENTERPRISE, 83/1 MADANMOHAN BURMAN STREET, KOLKATA-700007 [ PAN NO.AADFP 9608 C ] / V/S . INCOME TAX OFFICER, WARD-44(4), 3, GOVT. PLACE (WEST), KOLKATA- 001 /APPELLANT .. /RESPONDENT HEARING THROUGH VIDEO CONFERENCING /BY APPELLANT SHRI MANISHA PATWARI, ACA /BY RESPONDENT SHRI JAYANTA KHANRA, JCIT, SR-DR /DATE OF HEARING 28-01-2021 /DATE OF PRONOUNCEMENT 17-03-2021 /O R D E R THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 28.08.2019 OF THE COMMISSIONER OF INCOME-TAX (APPEA LS)-13, KOLKATA [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS REGARD ING THE DISALLOWANCE ON EXPENDITURE OF PURCHASE OF GOODS. THE SAME BEING TR EATED AS BOGUS TRANSACTIONS BY THE ASSESSING OFFICER. 3. AT THE OUTSET, THE LD. AR OF THE ASSESSEE HAS SU BMITTED THAT SIMILAR DISALLOWANCE WAS MADE IN THE CASE OF THE ASSESSEE B Y THE ASSESSING OFFICER IN THE ASSESSMENT CARRIED OUT FOR THE ASSESSMENT YEAR 2011 -12. THE MATTER TRAVELLED TO THE TRIBUNAL AND THE TRIBUNAL IN THE IDENTICAL CIRCUMST ANCES VIDE ORDER DATED 13.07.20 PASSED IN ITA NO.2635/KOL/2019 HAS HELD THAT THE DI SALLOWANCE OF ENTIRE PURCHASES ITA NO.93/KOL/2020 ASSESSMENT YEAR: 20 10-11 PNEUMATIC TOOLS ENTERPRISE VS. ITO WD-4 4(4), KOL. PAGE 2 CANNOT BE MADE. THE TRIBUNAL HELD THAT 15% GROSS PR OFIT ON THE UNVERIFIABLE PURCHASES WOULD MEET THE ENDS OF JUSTICE. THE TRIBUNAL, ACCOR DINGLY RESTRICTED THE ADDITION TO 15% OF THE GROSS PROFIT ON THE AFORESAID UNVERIFIAB LE PURCHASES. THE RELEVANT PART OF THE ORDER, WHICH READS AS UNDER:- 4. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THE D ISALLOWANCE OF EXPENDITURE ON PURCHASE OF GOODS AS BOGUS ACCOMMODATION ENTRIES. A FTER HEARING THE LD. D/R, I AM OF THE CONSIDERED OPINION THAT AS THE SALES AR E NOT DOUBTED AND AS THREE CAN BE NO SALES WITHOUT PURCHASES, I AM OF THE VIEW THAT 15% GP ON THE UNVERIFIED PURCHASES WOULD MEET THE ENDS OF JUSTICE . THUS, THE ADDITION IS RESTRICTED TO RS.72,345/-. THE ASSESSEE GETS RELIEF OF RS.4,09,955/-. THE LD. DR HAS FAIRLY AGREED THAT THE ISSUE IS COVE RED BY THE DECISION OF THE TRIBUNAL IN THE OWN CASE OF THE ASSESSEE IN EARLIER ASSESSME NT YEAR. RESPECTFULLY FOLLOWING THE SAID DECISION, THE ADDITION IS RESTRICTED TO 15% OF THE GROSS PROFIT ON THE UNVERIFIABLE PURCHASES. THE APPEAL OF THE ASSESSEE STANDS PARTLY ALLOWED . ORDER PRONOUNCED IN OPEN COURT ON 17/03/2021 SD/- (SANJAY GARG) JU DICIAL MEM BER *DKP/SR.PS ' - 17/03/2021 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-PNEUMATIC TOOLS ENTERPRISE 83/1 MADAN MO HAN BURMAN STREET, KOLKAT A-007 2. /RESPONDENT-ITO WARD-44(4), 3,GOVT. PLACE (WEST), K OLKATA-700 001 3. % ' / CONCERNED CIT 4. ' - / CIT (A) 5. ( ++% , % / DR, ITAT, KOLKATA 6. - / GUARD FILE. BY ORDER/ , %,