Boxcoworld Logistics India Private Limited Vs PCIT (ITAT Mumbai)
Summary: Where the Assessing Officer has examined disputed purchases, called for supporting records, issued notices to suppliers and then made a 25% disallowance, can the PCIT revise the assessment because, in her view, 100% should have been added? The Mumbai ITAT answered that question in favour of Boxcoworld Logistics India Pvt. Ltd. It quashed the revision order under section 263, noting both the enquiries conducted by the AO and the fact that the purchase additions were already under challenge before the CIT(A). The order also dealt with the PCIT’s objection that an addition made under section 69C had been taxed at 30% rather than 60% under section 115BBE. The Tribunal treated the rate issue as connected with the disputed addition pending in appeal. It did not separately decide whether section 69C or the 60% rate ultimately applies to that amount.
How Did the Purchase Dispute Arise?
The company filed its return for AY 2022-23 declaring income of ₹1,06,22,900. The assessment under section 143(3) read with section 144B determined income at ₹13,48,06,619 after additions on several issues. Two purchase related additions became the subject of the revision proceedings.
First, information obtained from two suppliers showed sales to the assessee exceeding the purchases recorded by it. The AO treated the difference of ₹1,72,80,113 as unaccounted purchases and added it under section 69C read with section 115BBE.
