Asiatic Industries Vs ITO (ITAT Kolkata)
The Income Tax Appellate Tribunal (ITAT), Kolkata Bench, has partially allowed an appeal filed by Asiatic Industries against an order from the National Faceless Appeal Centre (NFAC), Delhi. The case, pertaining to Assessment Year 2011-2012, involves an addition of Rs. 8,79,300 for alleged bogus purchases from three suppliers: Durga Trading Corporation, Tarama Ferrous & Nonferrous Trading Co. Pvt. Ltd., and Kaustri Metal Trading (P) Ltd.
The dispute arose following a survey at the assessee’s premises, where the Assessing Officer (AO) identified these purchases as bogus. The addition was subsequently confirmed by the Commissioner of Income Tax (Appeals) [CIT(A)].
During the ITAT proceedings, Shri Rajesh Kumar Mishra, the assessee’s authorized representative (AR), argued that, at most, only the profit element of the alleged bogus purchases should be assessed. He contended that the AO had issued notices under Section 133(6) of the Income Tax Act, 1961, which were returned with the remark “Not Known.” The AR suggested that the AO could have utilized Section 131(1) of the Act for a more thorough examination but failed to do so. The AR sought the deletion of the entire addition.
Conversely, Shri Sanjib Kumar Paul, the Senior Departmental Representative (Sr. DR), supported the orders of both the AO and the CIT(A), asserting the validity of the addition.
