Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE
Before: SHRI R.S. SYAL
PER R.S.SYAL, VP : This appeal by the assessee arises out of the order passed by the CIT(A)-2, Aurangabad on 27-08-2018 in relation to the assessment year 2010-11.
The only issue raised in this appeal is against the confirmation of addition on account of hawala purchases.
Briefly stated, the facts of the case are that the assessee was found to have recorded purchases from hawala dealer to the tune of Rs.76,20,165/-. On being called upon to substantiate the
2 ITA No.1851/PUN/2018 Shri Nandkishore Kishanrao Dilerao
genuineness of the transaction, the assessee filed certain details.
The Assessing Officer (AO) got convinced to the extent of the
quantity actually received against such hawala purchases. He,
however, made an addition of Rs.8,46,685/- @12.5% on account
of excess purchase price due to hawala transactions. The ld.
CIT(A) reduced the addition to 10%, against which the assessee
has come up in appeal before the Tribunal.
I have heard both the sides and gone through the relevant
material on record. The issue of bogus purchases has recently
come up for consideration before the Hon’ble Bombay High
Court in Pr.CIT Vs. Mohommad Haji Adam & Co. Vide its
judgment dated 11-02-2019 in ITA No.1004 of 2016 and others, the Hon’ble jurisdictional High Court has held that no ad hoc
addition at the rate of 10% of bogus purchases is warranted.
Rather the addition should be made to the extent of difference
between the gross profit rate on genuine purchases and gross
profit rate of hawala purchases. Such details are not readily
available with the ld. AR as well to facilitate the calculation of
gross profit rates of genuine and hawala purchases. Under these
circumstances, I set-aside the impugned and remit the matter to
3 ITA No.1851/PUN/2018 Shri Nandkishore Kishanrao Dilerao
the file of AO for applying the ratio laid down by the Hon’ble
Jurisdictional High Court in the above noted case and recompute
the amount of addition, if any, after allowing a reasonable
opportunity of hearing to the assessee.
In the result, the appeal is allowed for statistical purposes.
Order pronounced in the Open Court on 30th April, 2019.
Sd/- (R.S.SYAL) उपा�य� उपा�य�/ VICE PRESIDENT उपा�य� उपा�य�
पुणे Pune; �दनांक Dated : 30th April, 2019 सतीश
आदेश क� क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत / Copy of the Order is forwarded to : आदेश क� क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत आदेश आदेश 1. अपीलाथ� / The Appellant; ��यथ� / The Respondent; 2. आयकर आयु�(अपील) / 3. The CIT (Appeals)-2, Aurangabad 4. The Pr. CIT-2, Aurangabad िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे “SMC” / DR 5. ‘SMC’, ITAT, Pune; गाड� फाईल / Guard file. 6. // True copy // आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार
// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune
ITA No.1851/PUN/2018 Shri Nandkishore Kishanrao Dilerao
Date 1. Draft dictated on 30-04-2019 Sr.PS 2. Draft placed before author 30-04-2019 Sr.PS 3. Draft proposed & placed before JM the second member 4. Draft discussed/approved by JM Second Member. 5. Approved Draft comes to the Sr.PS Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *