Anowar Hossain Mondal Vs ITO (ITAT Kolkata)
Summary : The Income Tax Appellate Tribunal, Kolkata Bench, dismissed the assessee’s appeal and upheld the addition of ₹15.08 lakh as unexplained expenditure under Section 69C arising from alleged bogus purchases made from a supplier identified as a paper entity engaged in issuing fake GST invoices. The assessee, engaged in hardware supply to Gram Panchayats, argued that purchases were supported by invoices, bank payments, GST details, confirmations, and accepted sales records. However, the Tribunal observed that the supplier was found non-existent, notices issued under Section 133(6) remained unserved, transport details were unverifiable, and no independent evidence of actual delivery of goods was produced. Relying on recent Bombay High Court rulings in Kanak Impex and Drisha Impex, as well as Calcutta High Court precedent, the Tribunal held that once purchases are proved bogus, the entire amount—not merely profit element—must be added under Section 69C. The Tribunal rejected the plea for estimating only additional profit and confirmed the reassessment and full addition.
Core Issue: The principal issue before the Tribunal was whether purchases amounting to ₹15,08,950 allegedly made from a GST hawala/accommodation entry provider could be treated as bogus and added entirely under section 69C despite the assessee producing invoices, bank payment proofs, GST details and corresponding sales records.
