ACIT Vs Rudra Global Infra Products Limited (ITAT Ahmedabad)
Bogus Purchases Deleted Despite 133(6) Non-Compliance: ITAT Ahmedabad Upholds CIT(A)’s Order in Absence of Contrary Evidence
The Ahmedabad Bench of the ITAT dismissed the Revenue’s appeal and upheld the deletion of a ₹41.71 crore addition on account of alleged bogus purchases made by the Assessing Officer for AY 2022-23. The addition was made solely on the basis of non-response or partial response to notices issued u/s 133(6) to certain suppliers of MS scrap.
The Tribunal noted that the assessee had produced extensive contemporaneous documentary evidence, including purchase invoices, confirmations, GSTR-2A reconciliation, bank statements evidencing online payments, TDS compliance, delivery challans, transport documents, and proof of stock consumption. The AO neither rejected the books of account nor doubted sales, opening stock, or closing stock, and failed to conduct any independent or meaningful enquiry to discredit the evidence on record.
Relying on settled law, including GP International Ltd. (P&H HC) and Hareshbhai Mohanbhai Sakariya (ITAT Surat), the Tribunal held that no adverse inference can be drawn merely because suppliers did not respond to notices u/s 133(6), unless the AO falsifies the documentary evidence through proper enquiry. Since the CIT(A) had recorded detailed supplier-wise factual findings, which remained uncontroverted by the Revenue, the ITAT found no reason to interfere.
Accordingly, the Revenue’s appeal was dismissed, and since the CIT(A)’s order was upheld on merits, the assessee’s cross-objection was dismissed as infructuous.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
