PRAMOD SHANKARRAO SALUNKHE,KOLHAPUR vs. PR. COMMISSIONER OF INCOME-TAX -2, KOLHAPUR

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ITA 974/PUN/2018Status: DisposedITAT Pune07 October 2021AY 2010-117 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that when bogus purchases are consumed, the addition should be restricted to the profit element, not the entire amount. Following jurisdictional High Court precedent, 10% of bogus purchases was deemed reasonable.

What were the facts?

The assessee engaged in construction business made bogus purchases. The Assessing Officer made a disallowance of 20% of these bogus purchases. The Principal Commissioner of Income Tax invoked revisionary powers under Section 263, holding the AO's order erroneous and prejudicial to revenue.

What were the issues?

Whether the revisionary order under Section 263 was justified when the Assessing Officer's disallowance was higher than the profit element considered reasonable by higher courts. The quantum of addition for bogus purchases.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 147,Section 68,Section 69C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, PUNE

Before: SHRI R.S.SYAL, VP & SHRI PARTHA SARATHI CHAUDHURY, JM

For Respondent: Shri J.P Chandrakar
Hearing: 08.10.2021Pronounced: 08.10.2021

आदेशानुसार / BY ORDER,

// True Copy // धनजी सधचव / Private Secretary आयकर अपीलीय अधधकरण, पुणे / ITAT, Pune.

Date 1 Draft dictated on 08.10.2021 Sr.PS/PS 2 Draft placed before author 08.10.2021 Sr.PS/PS 3 Draft proposed and placed JM/AM before the second Member 4 Draft discussed/approved by AM/JM second Member 5 Approved draft comes to the Sr.PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr.PS/PS 7 Date of uploading of order Sr.PS/PS 8 File sent to Bench Clerk Sr.PS/PS 9 Date on which the 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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