Pringalkumar Praveenbhai Shah Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad Deletes Rs 9 Cr Purchase Addition – AO CIT(A) Ignored Evidence; Order Held Violative of Natural Justice
In Pringalkumar Praveenbhai Shah vs ITO (AY 2020-21), the ITAT Ahmedabad allowed the assessee’s appeal and deleted addition of ₹9,00,63,954 made u/s 69C r.w.s. 115BBE towards alleged bogus purchases. The AO had disallowed purchases from nine suppliers alleging lack of supporting documents and confirmations, which was upheld by CIT(A). However, the Tribunal found that extensive evidences — including supplier PAN, confirmations, annual accounts, bank statements, GST returns, invoices, freight bills and e-way bills — were already filed during assessment proceedings. The document index and chart on pages 7–11 clearly demonstrated date-wise submission of these records, contradicting the authorities’ findings.
ITAT observed that both AO and CIT(A) recorded incorrect factual findings by stating that only confirmations were filed, whereas the assessee had produced voluminous documentary evidence and replies on the ITBA portal. The Tribunal termed the appellate order a “classic case of gross callousness,” holding that ignoring available evidence violated principles of audi alteram partem and rendered the order unsustainable. Since sales were accepted and purchases were duly supported, the entire disallowance was deleted without granting another opportunity to the department.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
