Maa Chandi Rice Industries Vs ACIT (ITAT Raipur)
The Raipur Bench of the Income Tax Appellate Tribunal (ITAT) dealt with appeals filed by the assessee against orders passed by the Commissioner of Income Tax (Appeals), Raipur-3 dated 24.12.2025 for assessment years 2015-16 and 2016-17.
At the time of hearing, none appeared on behalf of the assessee, though an adjournment application had been filed. The Tribunal rejected the adjournment request and proceeded to hear the matter after considering the submissions of the Senior Departmental Representative and examining the material available on record.
The Revenue submitted that the dispute related to alleged bogus purchases by rice millers, an issue already pending before the jurisdictional High Court in several matters. The Tribunal treated the appeal for AY 2015-16 as the lead matter.
For AY 2015-16, the assessee had filed its return declaring total income of Rs.8,21,840. The assessment was originally completed under Section 143(3) on 14.07.2017 determining total income at Rs.19,66,360. Subsequently, based on information received from the Investigation Wing, Raipur, the case was reopened under Section 147 after approval under Section 151. The information indicated that the assessee was allegedly a beneficiary of accommodation entries in the form of bogus purchases from two concerns, namely M/s Shri Vaishno Devi Exim amounting to Rs.51,08,750 and M/s Maa Sharda Process amounting to Rs.30,00,000, aggregating to Rs.81,08,750. The proprietors of these concerns had reportedly admitted before the Investigation Wing that their entities were engaged only in issuing bogus purchase bills and that amounts received from beneficiaries were returned in cash after routing through bank accounts.
