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Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE
Before: SHRI R.S. SYAL
आदेश / ORDER
PER R.S. SYAL, VP : This appeal by the assessee is directed against the order passed by the CIT(A)-8, Pune on 06-08-2019 in relation to the assessment year 2008-09. 2. This appeal is time barred by 318 days. The assessee has filed an affidavit stating the reasons that the lockdown was imposed by the Govt. due to Covid-19 pandemic, which led to the late filing of the appeal. The ld. DR did not seriously object to the delay. Therefore, the delay is condoned and the instant appeal is admitted
2 ITA No.657/PUN/2020 Navin Sirahmal Mukim
for disposal on merits by virtue of judgment of the Hon’ble
Supreme Court in Cognizance for Extension of Limitation, In re
438 ITR 296 (SC) read with judgment in Cognizance for Extension
of Limitation, In re 432 ITR 206 (SC) dated 08-03-2021 and 421
ITR 314.
The only issue involved in this appeal is against the
confirmation of addition of Rs.27,91,507/- made by the AO on
account of bogus purchases.
Briefly stated, the facts of the case are that the assessee is
engaged in the manufacturing and trading of Jewellery items. The
Assessing Officer, on verification of information received from the
Maharashtra Sales Tax Department, observed that the assessee was
one of the beneficiaries of Hawala purchases. Such amount of bills
stood at Rs.27,91,507/-. The assessee was called upon to prove the
genuineness of the purchases so made. The assessee submitted
certain details. Not convinced, the AO made the addition equal to
the amount of Hawala purchase bills, which got confirmed in the
first appeal. Aggrieved thereby, the assessee has approached the
Tribunal.
Having heard both sides and gone through the relevant
material available on record, it is observed that the assessee
3 ITA No.657/PUN/2020 Navin Sirahmal Mukim
allegedly purchased diamonds through the Hawala purchase bills
and thereafter utilized the same in the manufacture of the jewellery.
In such a situation, the entire amount of purchase bills does not
requires addition but only the profit element because the diamonds
must have been actually purchased at lower prices in lieu of which
costly hawala purchases were recorded, which were used in the
jewellery-making,. The Hon’ble jurisdictional High Court in
Pr.CIT Vs. Paramshakti Distributors Pvt. Ltd., vide its judgment
dated 15.07.2019 in ITA No.413/2017, has sustained the addition @
10% of the amount of purchases, being, the profit element involved
therein. Respectfully following the precedent, I deem it appropriate
to restrict the addition to 10% of the amount of purchases. It is
ordered accordingly.
In the result, the appeal is partly allowed. 6.
Order pronounced in the Open Court on 30th June, 2022.
Sd/- (R.S.SYAL) उपा�य�/ VICE PRESIDENT
पुणे Pune; �दनांक Dated : 30th June, 2022 Satish
ITA No.657/PUN/2020 Navin Sirahmal Mukim
आदेश की �ितिलिप अ�ेिषत/Copy of the Order is forwarded to: अपीलाथ� / The Appellant; 1. ��थ� / The Respondent 2. 3. The CIT(A)-8, Pune 4. The Pr.CIT-4, Pune 5. DR, ITAT, ‘SMC’ Bench, Pune गाड� फाईल / Guard file. 6. आदेशानुसार/ BY ORDER,
// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune
Date 1. Draft dictated on 29-06-2022 Sr.PS 2. Draft placed before author 29-06-2022 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.
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