ACIT Vs Taparia Tools Limited (ITAT Pune)
₹87.65-cr ‘bogus purchase’ disallowance sent back: GST closure letters & transport evidence to be freshly examined
ITAT Pune set aside CIT(A)’s deletion of ₹87.65 crore disallowance on alleged bogus purchases from Sharp King Trading Pvt. Ltd. & remanded the issue to AO for limited fresh examination. AO had earlier disallowed 100% purchases u/s 37(1) citing non-production of transport bills, negligible expenses & profits of supplier, warehouse capacity mismatch & findings in supplier’s assessment.
CIT(A) deleted addition relying inter alia on GST Intelligence closure letters stating that goods were supplied.
Tribunal noted that crucial GST closure letters (dated 24-12-2021 & 27-04-2023), search/panchanama material & voluminous transport/delivery evidence were not examined by AO & some constituted additional evidence requiring verification under Rule 46A. Holding that genuineness of purchases must be tested on complete material, ITAT restored the matter to AO to verify GST search/closure, delivery challans, lorry receipts & other evidence & then decide afresh after granting due opportunity. Revenue appeal & assessee’s cross-objection were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT PUNE
The captioned appeal at the instance of Revenue and Cross Objection by the assessee pertaining to A.Y. 2017-18 are directed against the order dated 27.03.2025 framed by National Faceless Appeal Centre, Delhi emanating out of Assessment Order dated 30.05.2023 passed u/s.147 r.w.s.144B of the Income Tax Act, 1961 (in short ‘the Act’).
