Hemraj Umraoji Punekar Vs DCIT (ITAT Nagpur)
Bogus Purchase Addition Based on Sales Tax Info Deleted – Non-Production of Vendors Lorry Receipts Not Fatal When Books Payments Verified – ITAT Nagpur
The AO disallowed purchases of ₹35.48 lakh treating them as non-genuine based mainly on Sales Tax Department information and absence of lorry receipts/transportation documents. CIT(A) confirmed the addition.
ITAT observed that assessee furnished tax invoices, VAT details, delivery particulars, ledger accounts & payments through banking channels, while sales and books of accounts were never rejected. Tribunal held that once goods were delivered and payments made, the assessee cannot be compelled to produce vendors years later, especially when transactions were nearly 15 years old. Mere non-response by suppliers or VAT default by vendors cannot justify disallowance without independent verification. Accordingly, the addition was deleted and appeal allowed, though Tribunal clarified that the decision is fact-specific.
FULL TEXT OF THE ORDER OF ITAT NAGPUR
This appeal at the instance of the assessee is directed against the order of Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [“CIT(A)”], dated 30/04/2025 passed u/s. 250 of the Income Tax Act, 1961 (for short, ‘the Act’) which is arising out of assessment order dated 10.11.2017 passed u/s. 143(3) r.w.s. 254 of the Act by DCIT, Circle-2, Nagpur for the Assessment Year 2009-10 (A.Y.)
