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Facts
The Revenue reopened the assessment of a charitable trust for AY 2014-15 based on information regarding bogus purchase bills amounting to Rs. 1,84,99,795/-. The Assessing Officer made an addition of Rs. 1,85,00,000/- u/s 68 of the Act. The CIT(A) deleted the addition.
Held
The Tribunal held that the evidence regarding fictitious purchases was not conclusive for the assessment year in question, as the alleged provider of bogus entries stated he started this activity in January 2018, not in the relevant financial year. Further, the assessee trust had excess application of funds, indicating no intention to evade tax. The penalty was also deleted as it was based on the addition which was deleted.
Key Issues
Whether the addition on account of bogus purchases is sustainable when the provider of entries claims to have started the activity much later than the assessment year in question, and whether the penalty levied is justified.
Sections Cited
147, 143(1), 271(1)(c), 11, 12A, 68, 115BBE, 132(4), 142(1), 148, 151, 153C
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI R. K. PANDA & MS ASTHA CHANDRA
आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. The concerned Pr.CIT, Pune 4. DR, ITAT, ‘A’ Bench, Pune गार्ड फाईल / Guard file. 5. आदेशानुसार/ BY ORDER, // True Copy //
Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune
S.No. Details Date Initials Designation 1 Draft dictated on 04.08.2025 Sr. PS/PS 2 Draft placed before author 07.08.2025 Sr. PS/PS Draft proposed & placed before the 3 JM/AM Second Member Draft discussed/approved by Second 4 AM/AM Member 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS Date on which the file goes to the Head 9 Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order