M/S WIZARD BIOTECH PVT LTD.,JAIPUR vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-4, JAIPUR

In this appeal, the assessee is basically aggrieved for the ex parte order passed by the A.O. without giving opportunity and also for merit of the addition so made in respect of purchases which was alleged to be bogus.

I have considered the rival contentions and carefully gone through the orders of the authorities below. From the record, I found that the A.O.

2 ITA 1055/JP/2019 M/s Wizard Biotech (P) Ltd. Vs ACIT has made 100% addition in respect of purchases made from M/s Span Enterprises, Mumbai amounting to Rs. 13,09,500/-. It is the contention of the ld AR that AO has passed the impugned assessment order based on general information received from the office of Commercial Taxes Department (CTD), Maharastra wherein CTD has contended that one M/s. Span Enterprises, Mumbai has issued sale bill of Rs.1309500/- to the assessee whereas the assessee from initiation of proceedings has denied to make any such purchases from M/s. Span Enterprises, Mumbai. That the assessee has got issued certified copy of the reasons recorded by the AO vide application submitted in office of ACIT, Circle-4, Jaipur on dated11.11.2019, copy of which are annexed in Paper Book.

It was further argued that the assessee was registered under Maharastra VAT Act having TIN-27750012485V and copy of all these VAT Returns and wherein there is no such purchase transaction have been shown in these returns during the financial year 2008-09 which stipulates the details of purchases made during the year by the assessee and which is submitted with the Commercial taxes department to get benefit of Input tax credit (ITC) and otherwise there would have been loss of Input tax credit (ITC) to the assessee. Thus, on perusal of these VAT Returns it is 3 ITA 1055/JP/2019 M/s Wizard Biotech (P) Ltd. Vs ACIT crystal clear that there is no such entry falling to have made purchase from M/s. Span Enterprises, Mumbai and then how the same may be treated to have been made as purchases is absolutely illegal and unjustified in the facts and circumstances of the case. Copy of all these VAT Returns are annexed herewith in Paper Book.

After going through the documents placed on record, I set aside the ex parte order passed by the A.O. and the matter is restored back to him for deciding the issue afresh after considering the documents filed by the assessee before the ITAT. The assessee is also directed to file all these documentary evidences before the A.O. to facilitate for passing of the fresh order in accordance with law. Needless to say, assessee be provided reasonable opportunity of hearing.

In the result, appeal of the assessee is allowed for statistical purposes only.