ACIT Vs Narendrakumar Hansrajbhai Patel (ITAT Ahmedabad)
CIT(A)’s Relief Set Aside for Violation of Rule 46A – ITAT Ahmedabad Remands ₹10.64 Cr Bogus Purchase Case; Violation of Rule 46A Costs Assessee Relief – ITAT Restores ₹10.64 Cr Bogus Purchase Dispute to CIT(A); ITAT: Relief on Bogus Purchase Addition Invalid Without AO’s Remand Report Under Rule 46A; Procedural Lapse Under Rule 46A Vitiates Relief on ₹10.64 Cr Addition – ITAT Ahmedabad; ITAT Ahmedabad: Fresh Evidence Accepted Without AO Verification Violates Rule 46A; Rule 46A Non-Compliance Leads to Remand of ₹10.64 Cr Bogus Purchase Dispute; ITAT: Deletion of Bogus Purchase Addition Unsustainable Due to Lack of AO Verification; Failure to Follow Rule 46A Invalidates CIT(A)’s Relief in ₹10.64 Cr Bogus Purchase Case; ITAT Emphasizes Rule 46A Compliance: CIT(A) Cannot Delete Addition Without AO Verification
Assessee, a trader in wooden products under M/s. Vikas Wood, declared income of ₹21.15 lakh. AO found that out of total purchases of ₹13.35 crore, six suppliers (₹10.64 crore) were non-filers or had cancelled GST numbers. Holding the purchases as non-genuine, AO added ₹10.64 crore u/s 69C as unexplained expenditure.
Before CIT(A), Assessee produced additional evidences including purchase bills, GST returns (GSTR-1, 3B, 2B), confirmations, e-way bills & bank statements, showing all payments via cheques & matching sales accepted by AO. CIT(A) accepted the documents & deleted the entire addition, holding that the purchases were genuine & supported by proper records.
