ACIT Vs Jotindra Steels & Tubes Limited (ITAT Delhi)
In the case of ACIT Vs Jotindra Steels & Tubes Limited, the Income Tax Appellate Tribunal (ITAT), Delhi, decided two Revenue appeals relating to Assessment Years 2011-12 and 2012-13. The primary dispute concerned additions made by the Assessing Officer (AO) on account of alleged bogus purchases.
The case arose from a search and seizure operation conducted under Section 132 of the Income Tax Act in the case of Mauria Udyog Ltd. and its group concerns. During scrutiny assessment proceedings, the AO examined purchases made by the assessee from four parties, namely M/s Ganesh Steel Syndicate, M/s Pacific Sales Corporation, M/s G.P. Trading Company, and M/s Nayak Sales Corporation.
Read HC Judgment in this case: Delhi HC Rejected Bogus Purchase Addition for Duly Explained Purchases
The AO relied on seized documents containing assessment orders passed by the Deputy Commissioner, Commercial Tax, Ghaziabad, wherein purchases from these parties had been treated as bogus by the Commercial Tax Department. Further, field enquiries conducted by the Income Tax Department revealed that these parties were allegedly non-existent at their given addresses.
The assessee was asked to justify the purchases with supporting evidence. In response, the assessee stated that the Additional Commissioner (Appeals), Ghaziabad had remanded the commercial tax matter back to the Assessing Officer for reconsideration. The assessee also contended that the sales had already been accepted and corresponding demands had been created by the commercial tax authorities, indicating that the sales transactions were genuine.
