Vimal Coal Private Limited Vs DCIT (ITAT Ahmedabad)
Vimal Coal Pvt. Ltd. challenged an order by the CIT(A) that upheld the addition of Rs. 25.91 lakh to its income for Assessment Year 2017-18, stemming from alleged bogus purchases totaling Rs. 2.47 crore. The revenue authorities had considered these purchases as non-genuine based on incriminating material obtained during a survey of the supplier, M/s HJM Fuels Pvt. Ltd. Despite the assessee’s submission of documentary evidence, including purchase bills, bank statements, and vendor confirmations, the Assessing Officer and CIT(A) rejected the genuineness of the transactions and applied a 10.46% gross profit rate to the disputed amount. However, the ITAT Ahmedabad ruled in favor of Vimal Coal, noting that the evidence provided by the assessee, including TCS and VAT records, sufficiently demonstrated the legitimacy of the purchases. The tribunal found that the revenue authorities failed to provide contradicting evidence to disprove the genuineness of the transactions, leading to the deletion of the addition.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The present appeal has been filed by the assessee against the order of the learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as “CIT(A)” for short) dated 22.09.2023 passed u/s 250 of the Income-tax Act, 1961, (hereinafter referred to as “the Act” for short) for the Assessment Year (AY) 2017-18.
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