M/S. SPAN HYDROTECH PVT.LTD,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 10, PUNE

आदेश/ ORDER

PER D. KARUNAKARA RAO, AM :

There are two appeals under consideration relating to assessment years 2009-10 and 2010-11. Both the appeals are in connection with the re-assessment proceedings involving alleged bogus purchases.

ITA Nos.2763 & 2765/PUN/2017

be cancelled. The material based for reopening is vague and has no live link with escapement of income in the hands of the appellant. 2. The learned CIT(A) erred in law and on facts in confirming addition of Rs.10,57,705/- on account of inflated purchases alleged to be bogus. 3. The learned CIT(A) erred in law and on facts in confirming the addition inspite of holding that the ld. A.O. has not brought on record any evidence to prove that the purchases were bogus and further ignoring the evidence produced in support of the purchases. 4. The appellant craves to add, alter, modify or substitute any ground of appeal at the time of hearing.”

engaged in the business of manufacture of WTP Plants, reseller in specialty

chemicals and job work charges. The assessee filed its return of income on

29.09.2009 declaring total income of Rs.3,68,020/-. The Assessing Officer

completed the assessment u/s 143(3) r.w.s. 147 on 05.02.2015 and made

an addition of Rs.10,57,705/- on account of bogus purchases.

appeal before the CIT(A). Rejecting the various explanations of the

assessee, the CIT(A) sustained the addition made by the Assessing Officer.

assessee is in appeal before me raising the aforementioned grounds.

assessee submitted that this is the case of alleged bogus purchase and the

Assessing Officer made addition on entire purchases as additional income

of the assessee in both the years. The CIT(A) confirmed the said additions

ignoring the fact that the GP rates are normally confirmed.

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these orders of the CIT(A) were passed in the month of August, 2017

without benefit of assistance of the decision of the Pune Bench of the

Tribunal in the case of M/s Chhabi Electricals Pvt. Ltd. vs. DCIT vide ITA

No.795/PUN/2014, order dated 28.04.2017. The ld. Counsel for the

assessee submitted that the said order was passed by the Tribunal in the

month of April, 2017. The ld. Counsel for the assessee submitted that the

lower authorities did not have the benefit of copy of the same despite the

fact that the order passed by the Tribunal in the month of April, 2017. The

ld. Counsel further submitted that the matter may be remanded to the file

of the Assessing Officer for finding the GP computation of the said bogus

purchases in accordance with the order the of the Tribunal so called.

decided in the light of the said order of the Co-ordinate Bench of the

Tribunal in the case M/s Chhabi Electricals Pvt. Ltd. (supra). It is a settled

legal proposition that such cases of the bogus purchases are classified into

four groups. The assessee should fall in one of the four categories specified

in the said decision of the Tribunal in the case of M/s Chhabi Electricals

Pvt. Ltd. (supra). In the remand proceedings, I direct the Assessing Officer

to examine the facts of the present case and analyse the details and also

classify the same into one of the four categories already considered by the

Tribunal in the case of M/s Chhabi Electricals Pvt. Ltd. (supra). The

Assessing Officer should grant a reasonable opportunity of being heard to

the assessee in accordance with the principles of natural justice and pass a

speaking order on the issue raised by the assessee. Accordingly, the

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grounds raised by the assessee in both the appeals are allowed for statistical purposes.

Order pronounced on this 20th day of November, 2018.

Sd/- (D. KARUNAKARA RAO) लेखासद�य/ ACCOUNTANT MEMBER पुणे/ Pune; �दनांकDated : 20th November, 2018. Sujeet आदेशक���त�ल�पअ�े�षत/Copy of the Order is forwarded to : अपीलाथ�/ The Appellant; 1. ��यथ�/ The Respondent; 2. 3. 3. The CIT(A)-6, Pune; The CIT(A)-6, Pune; 4. The Pr. CIT-5, Pune; �वभागीय��त�न�ध, आयकरअपील�यअ�धकरण, पुणे“एक-सद�यमामला” / 5. DR ‘SMC’, ITAT, Pune; गाड�फाईल/ Guard file. 6.

// True Copy // आदेशानुसार/ BY ORDER,स

स�या�पत ��त//True Copy// Senior Private Secretary आयकरअपील�यअ�धकरण ,पुणे/ ITAT, Pune