Assistant Commissioner of Income-tax, Kolhapur V. M/s. Anant Chemicals, Kolhapur

MA 83/PUN/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 5433 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 2 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 15-10-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 28-09-2018
• Assessment Year: misc
• Appeal Filed On: 13-10-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUDENDU DAS
• Keywords: Bogus purchase
• Section: 10; 2

Judgement Text

- IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC , PUNE , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVED I, AM M A NO S . 83 & 84 /P U N/201 7 ARISING OUT OF ITA NO S . 1 288 & 1289 /PUN/201 5 ASSESSMENT YEAR S : 200 9 - 1 0 & 2010 - 11 THE ASST. COMMISSIONER OF INCOME TAX, ICHALKARANJI CIRCLE, ICHALKARNJI . APP LICANT VS. ANANT CHEMICALS ANANT, 18/484, NEW INDUSTRIAL E STATE, ICHALKARANJI, DIST. KOLHAPUR 416 115 . RESPONDENT PAN : AAEFA7703J APPLICANT BY : SHRI SUDENDU DAS RESPONDENT BY : SHRI M.K. KULKARNI / DATE OF HEARING : 28 . 0 9 .201 8 / DATE OF PRONOUNCEMENT: 15 . 1 0 .201 8 / ORDER PER SUSHMA CHOWLA, JM : THE REVENUE HAS FILED THE PRESENT MISCELLANEOUS APPLICATIONS AGAINST THE ORDER OF TRIBUNAL DATED 28.04.2017. 2. TH E PRESENT MISCELLANEOUS APPLICATIONS ARE MOVED BY REVENUE APPLICANT, WHEREIN IT IS AGGRIEVED BY THE FINDINGS OF TRIBUNAL IN PARA 46. THE GRIEVANCE OF REVENUE APPLICANT IS VIDE PARA 6 OF ITS APPLICATION, WHICH READS AS UNDER: - 2 M A NO S . 8 3 & 84 /P U N/201 7 06. THIS OFFICE HAD SU PPLIED THE INFORMATION. THERE IS NO DISPUTE OVER THIS FACT AND THE ASSESSEE HAD SUBMITTED HIS SAY ON THIS GROUND. THE ASSESSEE HAD MAINTAINED QUANTITATIVE DETAILS OR ESTABLISHED THE CASE OF RECEIPT OF GOODS. IN SUCH CIRCUMSTANCES, THE ITAT SHOULD HAVE A PPLIED THAT THE ADDITION BE MADE BY ESTIMATING THE SAME @ 10% OF THE ALLEGED HAWALA PURCHASES. 3. SHRI M.K. KULKARNI, THE LEARNED AUTHORIZED REPRESENTATIVE APPEARED ON BEHALF OF APPLICANT AND SHRI SUDENDU DAS, THE LEARNED DEPARTMENTAL REPRESENTATIVE APPE ARED ON BEHALF OF ASSESSEE. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE TRIBUNAL HAS DECIDED THE ISSUE VIDE PARA 46, WHICH READS AS UNDER: - 46. IN THE CASE OF M/S. ANANT CHEMICALS, COPY OF STATEMENT WAS SUPPLIED TO THE ASSESSEE AN D THE PERSON FROM WHOM PURCHASES WERE MADE WAS ALSO SUMMONED. HOWEVER, THERE WAS NON - COMPLIANCE AND ADDITION WAS MADE IN THE HANDS OF ASSESSEE. THE CIT(A) ON THE OTHER HAND, APPLIED HIGHER GP RATE TO ESTIMATE THE INCOME IN THE HANDS OF ASSESSEE ON ACCOUN T OF BOGUS PURCHASES. THE REVENUE IS IN APPEAL AGAINST THE SAME. THE ASSESSEE HAS NOT FILED ANY APPEAL AGAINST THE ORDER OF CIT(A) AND ACCORDINGLY, UPHOLDING THE ORDER OF CIT(A), BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. 5 . THE CIT(A) HAD DELETED THE ADDITION MADE ON ACCOUNT OF BOGUS PURCHASES. THE PLEA OF REVENUE APPLICANT BEFORE US IS THAT IN THE CIRCUMSTANCES, WHERE ALLEGEDLY THE ASSESSEE COULD NOT ESTABLISH ITS CASE AND AS IN THE OTHER CASES DECIDED BY THE SAID ORDER, GP RATE OF 10% SHOULD BE APPLIED TO ESTIMATE THE ADDITION ON ACCOUNT OF BOGUS PURCHASES. WE FIND MERIT IN THE PLEA OF REVENUE APPLICANT AND HOLD THAT AN ERROR HAS CREPT IN THE ORDER OF TRIBUNAL IN THIS REGARD. ACCORDINGLY, WE RECTIFY OUR FINDING IN PARA 46 IN LINE WITH OUR FINDI NGS ON THE SAID ISSUE IN THE SAID BUNCH OF APPEAL ITSELF. PARA 46 WAS READS AS UNDER: - 46. IN THE CASE OF M/S. ANANT CHEMICALS, COPY OF STATEMENT WAS SUPPLIED TO THE ASSESSEE AND THE PERSON FROM WHOM PURCHASES WERE MADE WAS ALSO SUMMONED. HOWEVER, THERE WAS NON - COMPLIANCE AND ADDITION WAS MADE IN THE HANDS OF ASSESSEE. THE CIT(A) HAS DELETED THE ADDITION MADE ON ACCOUNT OF BOGUS PURCHASES. THE REVENUE IS IN APPEAL AGAINST THE SAME. 3 M A NO S . 8 3 & 84 /P U N/201 7 THE ASSESSEE HAS NOT FILED ANY APPEAL AGAINST THE ORDER OF CIT(A) AC CORDINGLY, WE DIRECT THE ASSESSING OFFICER TO RESTRICT ADDITION IN THE HANDS OF ASSESSEE TO THE EXTENT OF GP RATE OF 10% ON THE AMOUNT OF BOGUS PURCHASES. THUS, APPEALS OF REVENUE ARE PARTLY ALLOWED. REST OF THE ORDER RELATING TO OTHER ASSESSEE WOULD R EMAIN SAME. 6 . IN THE RESULT, BOTH THE MISCELLANEOUS APPLICATION S ARE ALLOWED. ORDER PRONOUNCED ON THIS 15 TH DAY OF OCTOBER , 201 8 . SD/ - SD/ - (ANIL CHATURVEDI) (SUSHMA CHOWLA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 15 TH OCTOBER , 201 8 . GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. THE APP LICANT ; 2. THE RESPONDENT; 3. THE CIT(A) - 1&2, KOLHAP UR ; 4. THE CIT - I/II, KOLHAPUR/CIT(CENTRAL) ; 5. THE DR SMC , ITAT, PUNE; 6. GUARD FILE . / BY ORDER , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE