ALL METAL INDIA PVT. LTD,PUNE vs. INCOME-TAX OFFICER, WARD - 11(1), PUNE

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ITA 512/PUN/2020Status: DisposedITAT Pune18 November 2021AY 2009-105 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that no ad hoc addition for bogus purchases is warranted. Instead, the addition should be calculated based on the difference between the gross profit rate on genuine purchases and the gross profit rate on hawala purchases.

What were the facts?

The assessee company was found to have received bogus purchase bills. The Assessing Officer (AO) made an addition of 100% of the invoice value of these purchases, which was confirmed by the CIT(A). The assessee appealed this addition.

What were the issues?

The primary issue was the quantum of addition to be made on account of bogus purchases. The secondary issue was whether the addition should be 100% of the purchase value or based on profit margins.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE

Before: SHRI R.S. SYAL

For Appellant: Shri Pramod Shingte
For Respondent: Shri S.P. Walimbe

आदेश क� क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत / Copy of the Order is forwarded to : अ�ेिषत आदेश आदेश आदेश अपीलाथ� / The Appellant; 1. ��यथ� / The Respondent; 2. आयकर आयु�(अपील) / 3. The CIT (Appeals)-1, Pune 4. The Pr. CIT-1, Pune िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे “SMC” / 5. DR ‘SMC’, ITAT, Pune; 6. गाड� फाईल / Guard file. आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune

Date 1. Draft dictated on 18-11-2021 Sr.PS 2. Draft placed before author 18-11-2021 Sr.PS 3. Draft proposed & placed -- JM before the second member 4. Draft discussed/approved -- JM by Second Member. 5. Approved Draft comes to Sr.PS the Sr.PS/PS 6. Kept for pronouncement Sr.PS on 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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