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Facts
The assessee, a partnership firm, was found to have fraudulently availed Input Tax Credit (ITC) on the basis of fake invoices from two entities, M/s Sweekar Udyog and M/s Shiv Agro Sales. The Assessing Officer computed the total taxable income at Rs. 2,16,58,432/- and initiated penalty proceedings. The assessee challenged the additions made under section 69C of the Income Tax Act before the CIT(A), who dismissed the appeal.
Held
The Tribunal held that the assessee failed to establish the genuineness of the impugned purchases from M/s Sweekar Udyog and M/s Shiv Agro Sales. The Tribunal noted that the GST authorities were concerned only with GST and not the genuineness of purchases, and that the two entities did not respond to notices. The Tribunal also observed that mere payment by cheque does not prove the purpose of purchases.
Key Issues
Whether the assessee discharged its onus to prove the genuineness of purchase transactions when the suppliers were found to be bogus and their response to notices was absent?
Sections Cited
147, 144B, 271AC(1), 69C, 148, 148A, 133(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES,”B-Bench” JAIPUR
Before: SHRI RATHOD KAMLESH JAYANTBHAI, AM & SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA. No. 877/JPR/2024
Result
As a result, the appeal is disposed of, and the matter is remanded to the Assessing Officer for the purposes of recalculations in view of the findings recorded above and having regard to the well settled law on the point percentage of bogus purchases and/or Gross Profit of course, after providing opportunity to the assessee-appellant to produce there all the relevant and admissible material, in accordance with law, so as to enable the Assessing Officer to give effect to the decision.
Order pronounced in the open court on 29/11/2024. Sd/- Sd/- ¼jkBkSM+ deys'k t;UrHkkbZ ½ ¼ujsUnz dqekj½ (RATHOD KAMLESH JAYANTBHAI) (NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Shri Prem Industries vs. ITO Tk;iqj@Jaipur fnukad@Dated:-29/11/2024 *Ganesh Kumar, Sr. PS आदेश की प्रतिलिपिअग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू The Appellant- Shri Prem Industries, Bharatpur 1. izR;FkhZ@ The Respondent- ITO, Ward-1, Bharatpur 2. vk;djvk;qDr@ The ld CIT 3. विभागीय प्रतिनिधि] आयकरअपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 4. 5. xkMZQkbZy@ Guard File vkns'kkuqlkj@ By order,
सहायक पंजीकार@Aेेजज. त्महपेजतंत