WINTEK INFOTECH PRIVATE LIMITED,,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 1 (2),, PUNE

This assessee’s appeal for Assessment Year 2010-11 is directed against the Commissioner of Income Tax(Appeals), Pune- 8’s order dated 05.08.2019 passed in case no.PN/CIT(A)-8/DCITC Cir-1(2)/202/18-19/188, in proceedings u/s.143(3) r.w.s. 147 of the Income Tax Act, 1961 [in short “the Act”].

It emerges at the outset that the assessee’s sole substantive ground raised herein challenges correctness of both the lower authorities action disallowing bogus purchases of Rs.53,84,216/- involving twin suppliers M/s.Siddhi Enterprises and Aradhana

Mr.Phadke could hardly dispute both the learned lower authorities’ respective discussion(s) that the assessee could not even file on record the set twin suppliers ledger accounts, purchase orders, vouchers, transportation bills, octroi receipts, weighing bills, receipt notes, payments and confirmations; as the case may be. Faced with this situation, we find merit in Revenue’s arguments supporting the impugned disallowance in principle.

Next comes equally important aspect of quantification of the impugned bogus purchases disallowance. Learned DR vehemently argued that we must disallow the entire sum on account of the assessee’s failure in filing all the foregoing details. The fact however remains that the Revenue has itself accepted the corresponding increase in stock items as well as sales recorded against the very purchases. Hon’ble jurisdictional high court’s decisions in PCIT Vs. Mohammed Haji Adam Khan and Company [2019] 103 taxmann.com 459 (Bom) holds that such bogus purchases could not be allowed in entirety. Faced with this situation, we deem it

This assessee’s appeal is partly allowed in above terms.