VIDHI ELECTRONICS LLP,BHAYANDAR vs. PCIT, THANE

IN THE INCOME-TAX APPELLATE TRIBUNAL “F” BENCH,
MUMBAI
BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER
&
SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER
Vidhi Electronics LLP,
A-102,
Sudama
Tower,
Prakash
Market
Road,
Bhayander
West,
Thane-
401101, Maharashtra v/s.
बनाम
Principal
Commissioner of Income Tax, Ashar IT Park, 6th
Floor, Road No. 16Z, Wagle
Industrial
Estate,
Thane
(West),
Thane
–
400
604,
Maharashtra
स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: APPFV4987Q
Appellant/अपीलार्थी
..
Respondent/प्रतिवादी

Appellant by :
None
Respondent by :
Ms Kavitha Kaushik,(Sr. DR)

Date of Hearing
26.03.2025
Date of Pronouncement
28.03.2025

आदेश / O R D E R

PER PRABHASH SHANKAR [A.M.] :-

The present appeal is filed by the assessee against the order dated
06.11.2024 as passed by the Learned Commissioner of Income-tax
(Appeals)/National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] pertaining to assessment order passed u/s. 147 r.w.s 144
of the Income-tax Act, 1961 [hereinafter referred to as “Act”] dated
01.02.2024 for the Assessment Year [A.Y.] 2019-20. 2. The ground of appealis as under:

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Vidhi Electronics LLP, Thane

On the facts and in the circumstances of the case and in law, the Ld.
Assessing Officer in making addition of Rs. 83,74,029/-on account of unexplained expenses u/ s.69C of the I.T. Act which was further confirmed by the CIT-(A) needs to be quashed.
3. The brief facts of the case arein this case, the assessee filed return of income for the relevant to assessment year declaring total income of Rs. 87,601/-. As per the information with the Department the assessee had availed accommodation entries of Rs. 83,74,029/- in form of bogus purchases from one
PLANWELL
INDUSTRIES
CORPORATION PRIVATE LIMITED which was found to be merely a paper entity and providing bogus accommodation entries to its beneficiaries without providing goods or services. The assessee was allegedly found to be one of the beneficiaries availing bogus purchases from the entity for this year. Reassessment proceedings were initiated by the ld.AO. However, during the entire proceedings under clause (d) of section 148A of the Act, the assessee remained non-responsive.
Accordingly, after following due procedure order under clause (d) of section 148A of the Income-tax Act,1961 was passed and notice u/s. 148
of the Act issued on 31.03.2023 by the AO.Show Cause Notice was later issued to it to furnish the details/explanation. The relevant portion of SCN is as under “i) As seen from the above and as per information available, the assessee has shown bogus purchase amounting Rs.

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Vidhi Electronics LLP, Thane

83,74,029/- from the Planwell Industries Corporation Private Limited and failed to prove genuineness of transaction. In view of the above, please show cause why should not be bogus purchase of Rs. 83,74,029/- treated as unexplained expense u/s. 69C of the Act for the year under consideration. It is stated by the AO that the assessee only furnished details of purchases and copy of confirmation of purchases from seller parties only which were not found satisfactory by him. Accordingly, the purchase shown by the assessee of Rs. 83,74,029/- from the above entity was treated as unexplained expense u/s.69C of the Act and added back to its income.In the subsequent appeal,the ld.CIT(A) he upheld the addition made by the AO after considering the written submission made by the assessee which forms part of the appellate order also.
3. Before us, when the case was called out for hearing ,none attended from the side of assessee nor any written submission or adjournment application was filed. It appears from the contents of the orders of authorities below that the issue in hand has not been properly adjudicated. Even the ld.CIT(A) has not appreciated the contention of the asseseee though the written submission forms part of the order passed by him whereby the assessee vide reply dated has claimed the impugned transaction to be genuine. Vide written submission dated
13/10/2024 before him, the assessee contented that it purchased mobile

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A.Y. 2019-20

Vidhi Electronics LLP, Thane accessories from the said party as the assessee itself dealt in mobile phones.All the transaction were claimed to be genuine and made through banking channels.The copy of the reply is also forming part of the appellate order on pages-3 and 4.However,the ld.CIT(A) observed that this company had given such accommodation entry to avail bogus- input tax credit of GST. This racket is rampant and it has been detected by the Investigation Unit by carrying out a specific surgical operation and unearthing the modus operandi. Such large-scale tax evasion should not be allowed. It is recorded by the DDIT(Inv.) that Shri Rohit Sharma,
Director of Planwell Industries did not appear in response to various summons issued by his office. Further, they did not respond to the notice issued u/s 133(6) of the Act by the AO. It is for this reason the AO treated the purchase as bogus. Accordingly, the ld.CIT(A) rejected the submissions made and upheld the addition.
4. On due consideration of the above facts,we are of the considered opinion that both the authorities below have failed to properly evaluate the issue in hand and have been swayed away with the report of the Investigation wing only though the issue required further corroboration and examination which is apparently lacking in this case.We are of the view that the ld.CIT(A) should take into consideration the above submission to examine the merits of the contentions therein vis-a-vis the said

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A.Y. 2019-20

Vidhi Electronics LLP, Thane transaction. Section 250 of the Act, inter alia provides that the order of the Commissioner (Appeals) shall state the point of determination, decision and the reasons for such decision while disposing of the appeal in writing.However,in the case under consideration, theld.CIT(A) has failed to adhere to these provisions of the Act.In such a situation, the above matter needs to be remanded back to the ld.CIT(A) to for examining all the relevant facts of the case including the submissions made by the assessee so as to arrive at a judicious decision. Thus, in the interest of justice, we deem it appropriate to allow the appeal for statistical purposes, emphasizing the need for a thorough and compliant adjudication process.
The ld.DR has not objected to this proposed action. The ld. CIT(A) shall give proper and adequate opportunity of being heard to the assessee in accordance with principles of natural justice in the set aside remand proceedings for due adjudication of the appeal of the Revenue filed before him. Needless to state, the assessee would comply with the notices and cooperate in proper and just adjudication of the appeal filed by him.
5. In the result, the appeal is allowed for statistical purposes.

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A.Y. 2019-20

Vidhi Electronics LLP, Thane

Order pronounced in the open court on 28/03/2025. NARENDER KUMAR CHOUDHRY
PRABHASH SHANKAR
(न्याययक सदस्य /JUDICIAL MEMBER)
(लेखाकार सदस्य/ACCOUNTANT MEMBER)

Place: म ुंबई/Mumbai
ददनाुंक /Date 28.03.2025
Lubhna Shaikh / Steno

आदेश की प्रयियलयि अग्रेयिि/Copy of the Order forwarded to :
1. अपीलार्थी / The Appellant
2. प्रत्यर्थी / The Respondent.
3. आयकर आयुक्त / CIT
4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT,
Mumbai
5. गार्ड फाईल / Guard file.

सत्यावपि प्रवि ////
आदेशानुसार/ BY ORDER,

उि/सहायक िंजीकार (Dy./Asstt.