PCIT Vs Sunil Devkishan Panwar (Gujarat High Court)
The Gujarat High Court considered an appeal filed by the Revenue under Section 260A of the Income Tax Act, 1961, challenging the order of the Income Tax Appellate Tribunal for Assessment Year 2012–13. The dispute arose from the deletion of an addition of Rs. 5.04 crore made by the Assessing Officer on account of alleged bogus purchases.
The assessee had originally filed a return declaring income of Rs. 9.90 lakh, which was assessed under Section 143(3). Subsequently, based on information received from the Investigation Wing, Mumbai regarding transactions with an entity alleged to be an accommodation entry provider, reassessment proceedings were initiated under Section 147. The reassessment order determined the total income at Rs. 5.21 crore, including the disputed addition for alleged bogus purchases.
The Revenue contended that the assessee had entered into transactions with an entity identified as an accommodation entry provider and that such transactions were not genuine. It was argued that the assessee failed to establish the genuineness of the purchases and that payments made through banking channels alone could not prove authenticity. The Revenue further argued that additional evidence submitted before the appellate authority was not subjected to verification by the Assessing Officer.
