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Income Tax Appellate Tribunal, “H” BENCH, MUMBAI
Before: SHRI ABY T VARKEY & SHRI AMARJIT SINGH
Per Amarjit Singh (AM): The solitary ground of appeal of the assesse is pertained to adjustment on ground of purchases of Rs.2,16,668/- made from PEL Industries Ltd.
The fact in brief is that return of income declaring income of Rs.11,31,38,24,950/- filed on 28.11.2012 the income was assessed at Rs.25,48,39,49,626/- u/s 143(3) r.w.s 153C of the Act on 31.03.2016. Subsequently, the A.O received information from DDIT(Inv), Baroda that assesse company had made fictitious purchases to the amount of Rs.3,69,785/- from PEL Industries Ltd. Accordingly, the case of the assesse was reopened u/s 147of the Act and notice u/s 148 of the Act was issued on 31.03.2019. During the course of reassessment
P a g e | 2 Hindalco Industries Ltd. Vs. The DCIT, CC-1(4) proceedings the A.O issued notice u/s 133(6) of the Act to the PEL Industries Ltd. requiring it to furnish various details in respect of transaction with the assesse company along with copies of bills/invoices, delivery challans, lorry receipt etc. However, the notice was returned unserved, therefore, the assesse company was asked vide notice dated 28.11.2019 to produce the abovementioned details. However, the assesse has not furnished any explanation in this regard therefore, the A.O has treated the purchases to the amount of Rs.2,17,668/- made by the assesse company from PEL Industries Ltd. as bogus and added to the total income of the assesse.
Aggrieved, the assesse filed the appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assesse reiterating the fact reported by the A.O that supporting detail to establish the genuineness of purchases of Rs.2,17,668/- made from M/s PEL Industries Ltd. was not filed.
During the course of appellate proceedings before us the ld. Counsel vehemently contended that during the course of assessment proceedings and appellate proceedings copies of purchase orders made from PEL Industries Ltd. copies of GRN, copies of invoices, delivery challan along with copy of ledger account of PEL Industries Ltd. were filed and same were not considered by the lower authorities. The ld. Counsel also referred letter dated 27.01.2021 filed before the ld. CIT(A) wherein it was submitted that all the detail which requires for the genuineness of the transaction with complete documentary evidences were filed before the assessing officer. On the other hand, the ld. D.R supported the order of lower authorities.
Heard both the sides and perused the material on record. Assessment u/s 143(3) r.w.s 147 of the Act was completed on P a g e | 3 Hindalco Industries Ltd. Vs. The DCIT, CC-1(4) 16.12.2019. The assessing officer has treated the amount of Rs.2,17,668/- pertaining to purchases made by the assesse from PEL Industries Ltd. as bogus on the ground that genuineness of the transactions with documentary evidences was not proved. During the course of appellate proceedings before us the ld. Counsel submitted that relevant supporting evidences were filed before the A.O and CIT(A) during the course of assessment and appellate proceedings which were not considered. In this regard we have perused the paper book submitted by the ld. Counsel comprising copies of purchase order, copies of GRN as recorded in oracle system, copies of invoices, delivery challan and copies of ledger account of PEL Industries Ltd. as evidences of genuineness of making purchases from PEL Industries Ltd. to the amount of Rs.2,17,668/-. The assesse also submitted that it has purchased aluminium pipe from PEL Industries Ltd. for its Silvasa unit and this fact was categorically brought to the notice of the ld. CIT(A) during the course of appellate proceedings vide letter dated 27.01.2021 placed in the paper book that it had submitted all the details as placed in the paper book as referred above in support of genuineness of the impugned transaction. After perusal of the material on record we consider that the assessing officer has not brought any material contrary to disprove the documentary evidences furnished by the assesse in support of the impugned purchases made from PEL Industries Ltd. Therefore, we restore this issue to the file of the assessing officer for deciding afresh after verification of the supporting evidences as placed in the paper book and after affording due opportunities to the assesse. Therefore, the ground of appeal no. 2 of the appeal of the assesse is allowed for statistical purposes.
The Ground No. 1 pertaining to reopening of assessment was not discussed at the time of appellate proceedings, therefore, the same stand dismissed.
P a g e | 4 Hindalco Industries Ltd. Vs. The DCIT, CC-1(4)
The ground no. 3 pertaining to initiating of penalty u/s 271(1)(c) which is premature at this stage the same is not required any adjudication, therefore the same stand dismissed.
In the result, the appeal of the assesse is partly allowed for statistical purposes. Order pronounced in the open court on 10.02.2023 (Aby T Varkey) (Amarjit Singh) Judicial Member Accountant Member Place: Mumbai Date 10.02.2023 Rohit: PS
आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अपीलाथी / The Appellant 2. प्रत्यथी / The Respondent. 3. आयकर आयुक्त(अपील) / The CIT(A)- 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 6. गार्ड फाईल / Guard file.
सत्यावपि प्रवि //// आदेशानुसार/ BY ORDER,
उि/सहायक िंजीकार (Dy./Asstt.