Deepak Kumar Agarwal Vs ITO (ITAT Agra)
Bogus Purchase Addition of ₹6.78 Lakh Remanded for Fresh Verification; Mere Non-Confirmation Not Sufficient
The Agra Bench of the ITAT partly allowed the assessee’s appeal for AY 2020-21 and set aside the addition of ₹6.77 lakh sustained on account of alleged bogus purchases from M/s. C.K. Industries, remanding the matter to the Assessing Officer for fresh verification.
The assessee, a wholesale trader in metals, had faced additions of ₹2.56 crore for alleged bogus purchases. While the CIT(A) deleted the major addition of ₹2.49 crore relating to R.G. Enterprises, he confirmed addition of ₹6.77 lakh relating to purchases from C.K. Industries solely for want of confirmation from the supplier.
Before the Tribunal, the assessee pointed out that he had furnished extensive documentary evidence including:
- GST registration and GST returns of the seller,
- Purchase invoices and e-way bills,
- Transport bilty and transporter confirmation,
- Audit report u/s 44AB, and
- Bank statements showing payment through banking channels.
The Tribunal held that:
- Mere absence of confirmation from the supplier cannot by itself justify an addition,
- When prima facie evidence is produced, the authorities are duty-bound to verify and examine the same holistically, and
- The documentary evidence had not been properly examined either by the AO or the CIT(A).
Accordingly, the ITAT set aside the CIT(A)’s order on this limited issue and restored the matter to the AO with directions to verify all evidences and pass a fresh speaking order after granting due opportunity.
The appeal was allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT AGRA
