Income-tax Officer, Ward -1, Jalna V. M/s. V.K. Chemicals, Jalna

MA 142/PUN/2022

AI Insights

The case involves the Income Tax Officer, Ward-1, Jalna as the applicant and M/s. V.K. Chemicals as the respondent. The Revenue filed a miscellaneous application under section 254(2) of the Income Tax Act, 1961, seeking to recall the tribunal's earlier order which had restricted the disallowance of alleged bogus purchases to 10% of the gross profit. The tribunal found no merit in the Revenue's claim that the tribunal had ignored the assessee's admission of taking bogus purchase entries. The tribunal also addressed the concern of double deduction, stating that it is the responsibility of the Assessing Officer to ensure that no double deduction is granted, after affording adequate opportunity to the assessee.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137688 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 1 month(s) 30 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 02-02-2023
• Appeal Filed By: Department
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 02-02-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 03-12-2019
• Other Referred Cases: ACIT vs. Souhadra Kutch Stock Exchange Ltd., CIT vs. Reliance Telecom Ltd., CIT vs. Ramesh Electric and Trading Co.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER MA No.142/PUN/2022 Arising out of ITA No.990/PUN/2018 - Assessment Year 2011-12 Income Tax Officer, Ward-1, Jalna. vs. M/s. V.K. Chemicals, 1 st Floor, Shri Sai Complex, Jalna-431 203 PAN AADFN6145N Applicant Respondent Revenue by : Shri Suhas Kulkarni Assessee by : -None- Date of hearing : 03.02.2022 Date of pronouncement : 03.02.2022 ORDER This Revenue’s miscellaneous application filed u/s.254(2) of the Income Tax Act, 1961 (in short “the Act”) seeks to recall the tribunal’s order herein dated 24.06.2019 restricting both the learned lower authorities action disallowing the alleged bogus purchases of Rs.6,67,350/- to the extent of G.P. containing therein @ 10% only. 2. Case called twice. None appears at assessee’s behest. It is accordingly proceeded ex-parte. 3. Mr. Kulkarni vehemently argued during the course of hearing that not only this tribunal has committed an apparent error in ignoring the assessee’s admission of having 2 MA.No.142/PUN./2022 in ITA.No.990/PUN./2018 taken bogus purchase entries in issue but also this is a case wherein it results in double deduction of the very sum. 4. I find no merit in Revenue’s former submissions once both the learned lower authorities have been disallowed the assessee’s impugned purchases as bogus resulting in the addition in issue. It is made clear that the purpose of sec.254(2) rectification is only to correct apparent mistakes than entering in detailed roving enquiries as held in [2008] 305 ITR 277 (SC) ACIT vs. Souhadra Kutch Stock Exchange Ltd.; [2021] 133 taxmann.com 41 (SC) CIT vs. Reliance Telecom Ltd.; and [1993] 203 ITR 497 (Bom.) CIT vs. Ramesh Electric and Trading Co. 5. So far as the Revenue’s second plea that our impugned estimation @ 10% grants double deduction to the assessee both in the relevant previous year as well as succeeding assessment year, it is left open to the learned Assessing Officer to ensure that no double deduction is granted. Needful may be done as per law after affording adequate opportunity to the assessee in very terms. 6. No other ground or argument has been pressed before me during the course of hearing. 7. This Revenue’s miscellaneous application is partly accepted for statistical purposes in above terms. 3 MA.No.142/PUN./2022 in ITA.No.990/PUN./2018 Order pronounced in the open Court on 03 rd February, 2023. Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER Pune, Dated 03 rd February, 2023 VBP/- Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5 . DR, ITAT, “SMC” Bench, Pune. 6. Guard File. BY ORDER, // TRUE COPY // Senior Private Secretary ITAT, Pune.