Vinod Kumar Agrawal Vs ITO (ITAT Raipur)
The Income Tax Appellate Tribunal, Raipur in Vinod Kumar Agrawal Vs ITO dealt with additions made on alleged bogus purchases in the case of a rice miller for the assessment year 2011–12. The assessee had reported purchases of ₹3.04 crore, out of which purchases worth ₹2.91 crore were flagged by the department based on information from the Commercial Tax Department indicating non-payment of VAT. The Assessing Officer (AO) noted absence of supporting documents such as weighbridge slips, transport bills, and delivery challans, and also found that suppliers were untraceable. Accordingly, 25% of such purchases amounting to ₹72.78 lakh was added as income.
On appeal, the CIT(A) reduced the addition by applying a profit rate of 4.95%, sustaining ₹14.41 lakh and granting relief for the balance. Both the assessee and the Revenue challenged this order. During the proceedings, it was observed that similar issues relating to bogus purchase bills in rice mill cases were already pending before the jurisdictional High Court. The Tribunal noted that in earlier similar cases, matters had been remanded to the CIT(A) with directions to await the outcome of the High Court proceedings.
Considering judicial consistency and submissions from both parties, the Tribunal held that it would not be appropriate to decide the issue at this stage. It set aside the order of the CIT(A) and remanded the matter back for fresh adjudication after the High Court decision. The Tribunal clarified that the appellate authority must decide the matter afresh in accordance with law and principles of natural justice after the High Court ruling. Both appeals and the cross-objection were allowed for statistical purposes.
