Prankit Exports Vs ITO (ITAT Mumbai)
The Income Tax Appellate Tribunal Mumbai decided cross-appeals filed by the assessee and the Revenue for Assessment Year 2007–08, arising from reassessment proceedings under Sections 147/143(3) of the Income Tax Act, 1961. The dispute related to additions made under Section 69C on account of alleged bogus purchases from two parties, amounting to ₹77,70,765 and ₹29,09,702.
The assessee initially challenged the validity of reassessment. However, at the hearing, the assessee did not press the grounds relating to reopening under Section 147, and these grounds were dismissed. The Tribunal therefore proceeded to decide the matter on merits.
The reassessment was initiated based on information received from the Investigation Wing following a search under Section 132 in the Rajendra Jain Group cases. Statements recorded during the search indicated that certain group entities were engaged in providing accommodation entries in the form of bogus purchase and sale bills without actual supply of goods. The assessee was identified as a beneficiary allegedly obtaining such accommodation entries through purchases from Avi Exports. Notices under Section 133(6) were issued to Avi Exports and Rajiv Impex. While Avi Exports responded with ledger accounts, bank statements, PAN, bills, and confirmations, Rajiv Impex did not respond. The assessee could not produce either party before the Assessing Officer.
