SANTOSHSINGH HUKUMSINGH KARNAWAT,SURAT vs. THE INCOME TAX OFFICER, WARD-2(3)(8), SURAT

ITA 23/AHD/2017Status: DisposedITAT Surat11 January 2019AY 2012-1310 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that while the purchases might not be entirely genuine from the stated parties, disallowing 100% was not justified as the assessee's sales were not doubted. The addition was restricted to 5% of the total bogus purchases.

What were the facts?

The assessee claimed purchases of Rs. 1,11,61,150/- from two parties, M/s. Euro Diam and M/s. Little Diam. The AO treated these purchases as bogus based on a statement from a third party, Shri Bhanwarlal M. Jain, who admitted to providing accommodation entries.

What were the issues?

Whether purchases made from parties who provided accommodation entries can be disallowed entirely when sales are not doubted, and whether the statement of a third party, without cross-examination, can be the sole basis for such disallowance.

Which sections of the Income-tax Act were involved?

Section 133(6),Section 132(4),Section 143(3)

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Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: SMT. DIVA SINGH & SHRI O.P.MEENAShri Santosh Singh Hukum Singh

Hearing: 11.01.2019

PER O. P. MEENA, ACCOUTANT MEMBER:

1.

This appeal by the Assessee is directed against the order of learned Commissioner of Income tax (Appeals)-2, Surat (in short “the CIT (A)”) dated 21.09.2016 pertaining to Assessment Year 2012-13, which in turn has arisen from the order dated 26.03.2015 passed by the Income Tax Officer, Ward- 2(3)(8) Surat (in short “the AO” ) under section 143 (3) o

The order continues below.

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