Income Tax Appellate Tribunal - Pune
Shri. Nandkishore Kishanrao Dilerao,, ... vs Income-Tax Officer, Ward - 3(1),, ... on 30 April, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH "SMC", PUNE
BEFORE SHRI R.S. SYAL, VICE PRESIDENT
आयकर अपील सं. / ITA No.1851/PUN/2018
िनधा रण वष / Assessment Year : 2010-11
Shri Nandkishore Kishanrao Vs. ITO, Ward-3(1),
Dilerao, Nanded
Prop. of Sunder Trading Company,
Lohar Galli, Nanded.
PAN : AAJPD5338F
(Appellant) (Respondent)
Appellant by Shri Kishor Phadke
Respondent by Shri Rajesh Gawali
Date of hearing 30-04-2019
Date of pronouncement 30-04-2019
आदेश / ORDER
PER R.S.SYAL, VP :
This appeal by the assessee arises out of the order passed by the CIT(A)-2, Aurangabad on 27-08-2018 in relation to the assessment year 2010-11.
2. The only issue raised in this appeal is against the confirmation of addition on account of hawala purchases.
3. Briefly stated, the facts of the case are that the assessee was found to have recorded purchases from hawala dealer to the tune of Rs.76,20,165/-. On being called upon to substantiate the 2 ITA No.1851/PUN/2018 Shri Nandkishore Kishanrao Dilerao genuineness of the transaction, the assessee filed certain details. The Assessing Officer (AO) got convinced to the extent of the quantity actually received against such hawala purchases. He, however, made an addition of Rs.8,46,685/- @12.5% on account of excess purchase price due to hawala transactions. The ld. CIT(A) reduced the addition to 10%, against which the assessee has come up in appeal before the Tribunal.
4. I have heard both the sides and gone through the relevant material on record. The issue of bogus purchases has recently come up for consideration before the Hon'ble Bombay High Court in Pr.CIT Vs. Mohommad Haji Adam & Co. Vide its judgment dated 11-02-2019 in ITA No.1004 of 2016 and others, the Hon'ble jurisdictional High Court has held that no ad hoc addition at the rate of 10% of bogus purchases is warranted. Rather the addition should be made to the extent of difference between the gross profit rate on genuine purchases and gross profit rate of hawala purchases. Such details are not readily available with the ld. AR as well to facilitate the calculation of gross profit rates of genuine and hawala purchases. Under these circumstances, I set-aside the impugned and remit the matter to 3 ITA No.1851/PUN/2018 Shri Nandkishore Kishanrao Dilerao the file of AO for applying the ratio laid down by the Hon'ble Jurisdictional High Court in the above noted case and recompute the amount of addition, if any, after allowing a reasonable opportunity of hearing to the assessee.
5. In the result, the appeal is allowed for statistical purposes.
Order pronounced in the Open Court on 30th April, 2019.
Sd/-
(R.S.SYAL) उपा य VICE PRESIDENT उपा य / पुणे Pune; दनांक Dated : 30th April, 2019 सतीश आदेश क ितिलिप अ िे षत / Copy of the Order is forwarded to :
1. अपीलाथ / The Appellant;
2. यथ / The Respondent;
3. आयकर आयु (अपील) / The CIT (Appeals)-2, Aurangabad
4. The Pr. CIT-2, Aurangabad
5. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, पुणे "SMC" / DR 'SMC', ITAT, Pune;
6. गाड फाईल / Guard file.
// True copy // आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune 4 ITA No.1851/PUN/2018 Shri Nandkishore Kishanrao Dilerao Date
1. Draft dictated on 30-04-2019 Sr.PS
2. Draft placed before author 30-04-2019 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.
*