M/S. RAMNIKLAL SIVJI SAVLA,MUMBAI vs. CIT (A)-30, MUMBAI
What did the Tribunal hold?
The Tribunal restored the issue to the CIT(A) for fresh adjudication, considering a previous Tribunal order on an identical issue for a different assessment year. This was due to the assessee's failure to provide the complete CIT(A) order for the current year.
What were the facts?
The assessee, a metal trader, was found to have made purchases from dealers identified by the Sales Tax Department as providing accommodation bills. The Assessing Officer added 25% of these purchases as income, and the CIT(A) reduced it to 12.5%.
What were the issues?
Whether purchases from dealers issuing accommodation bills are non-genuine, and if so, what is the appropriate profit addition. The procedural issue of incomplete documentation also played a role.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” Bench, Mumbai
The assessee has filed this appeal challenging the order dated 23.7.2018 passed by the learned CIT(A)-30, Mumbai and it relates to A.Y. 2009-10. The assessee is aggrieved by the decision of the learned CIT(A) in partially confirming the addition relating to the alleged bogus purchases.
The facts relating to the issue are stated in brief. The assessee is a trader in ferrous and non-ferrous metal. He filed its return of income for the year under consideration declaring total income of Rs. 2,80,938/-. The said return was processed under section 143(1) of the I.T. Act. The Assessing Officer subsequently received information from the investigation wing that a scam has been unearthed by the Sales tax department of Maharashtra wherein it was found that some of the dealers were providing accommodation sale bills without actually supplying the material. From the list of such dealers as notified by the sales tax department, it was noticed that the assessee has purchased goods from four dealers for amounts aggregating to Rs. 1.73 crores. Accordingly the Assessing Officer took the view that the above said purchases as non-genuine in nature. Accordingly he reopened the assessment by issuing
2 M/s. Ramniklal Sivaji Savla notice under section 148 of the Act. The Assessing Officer estimated the income @ 25% of the non-genuine purchases and accordingly made addition of Rs. 43,40,981/-.
The learned CIT(A) restricted the addition to 12.50% of the value of the alleged bogus purchases. Still aggrieved, the assessee has filed this appeal before the Tribunal.
It was noticed that the copy of order of the learned CIT(A) filed by the assessee before the Tribunal is incomplete, i.e. only the first page and the last page alone has been filed and not the entire order. Accordingly the assessee was directed to furnish full set of order of the learned CIT(A).
At the time of hearing learned AR however filed the appellate order pertaining to A.Y. 2010-11. He assured that he will file full appellate order pertaining to A.Y. 2009-10. However, till date the above said defect has not been rectified.
At the time of hearing, the learned AR furnished a copy of the order passed by the Tribunal in assessee’s own case in dated 3.8.2021 relating to A.Y. 2011-12. The Tribunal in A.Y.2011-12 has further restricted the disallowance to 8% of the value of alleged bogus purchases.
Since the assessee has failed to furnish copy of the appellate order passed by the learned CIT(A) in the instant year, I am unable to appreciate the decision given by the first appellate authority and hence a decision could not be arrived at. However, I notice that the Tribunal has decided an identical issue in AY 2011-12 in the assessee’s own case. Under these set of facts, I have no other option but the restore this issue to the file of the learned CIT(A) for adjudicating them afresh by duly considering the order passed by the Tribunal in assessee’s own case in A.Y. 2011-12. I order accordingly.
3 M/s. Ramniklal Sivaji Savla
In the result, appeal filed by the assessee is treated as allowed for statistical purposes.
Order pronounced in the open court on 15.12.2022.
More judgments on Section 148
- ACIT Central Bilaspur, Bilaspur vs Arun Kumar Agrawal, SaktiITSSA 26/RPR/2025[2018-19]Status: Disposed21 Oct 2026AY 2018-19
- Vinod Agrawal, Kawardha vs Assisstant Commissioner of Income Tax…ITA 666/RPR/2026[2019-20]Status: Heard21 Oct 2026AY 2019-20
- Sar Business Tradelink Private Limited… vs Income Tax Officer, Ward - 1(2), RaipurITA 599/RPR/2026[2014-15]Status: Heard21 Oct 2026AY 2014-15
- Neo Incorporation, Rajkot vs DCIT Circle- 1(2), RajkotITA 471/RJT/2026[2012-2013]Status: Disposed21 Oct 2026AY 2012-2013
- Adj Agri International LLP, Rajkot vs The Income Tax Officer, Ward-1(1)(1), RajkotITA 1198/RJT/2026[2018-19]Status: Disposed21 Oct 2026AY 2018-19
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