ACIT Vs Haware Construction Pvt. Ltd. (ITAT Mumbai)
Income Tax Appellate Tribunal (ITAT), Mumbai bench, has issued a consolidated order addressing appeals filed by the Revenue against Haware Construction Pvt. Ltd. concerning assessment years 2009-10 and 2011-12. The proceedings, arising from assessments under Sections 143(3) and 147 of the Income Tax Act, 1961, revolved around the validity of re-opening assessments, disallowances for alleged bogus purchases, the treatment of unsold flats held as stock-in-trade, and expenses related to exempt income.
Assessment Year 2009-10: Key Disputed Issues
Re-opening of Assessment Under Section 147/148 The initial contention for the 2009-10 assessment year centered on the re-opening of the assessment by the Assessing Officer (AO). Haware Construction Pvt. Ltd., a builder and developer, had initially filed its income tax return on September 27, 2009, declaring an income of Rs. 1,70,61,600. The assessment was completed under Section 143(3) on December 30, 2011.
The AO later received specific intelligence from the Investigation Wing of the Income Tax Department, Mumbai. This information indicated that Haware Construction had purportedly obtained bogus purchase bills totaling Rs. 2,20,472 from M/s. Top Bricks and Sand Suppliers, a vendor identified as a hawala operator by the Maharashtra Sales Tax Department. Based on this information, the AO recorded reasons for re-opening the assessment and issued a notice under Section 148 on March 26, 2013. This notice was issued within the four-year period from the end of the relevant assessment year.
