Vinod Kumar Agrawal Vs ITO (ITAT Raipur)
Bogus purchase issue kept in abeyance: ITAT Raipur remands matter to CIT(A) awaiting HC verdict
Raipur Tribunal set aside order of CIT(A)/NFAC confirming 25% disallowance of purchases alleged to be bogus in case of a rice miller. Tribunal noted that identical issue of alleged bogus purchase bills obtained by rice millers is sub-judice before the Jurisdictional High Court in multiple connected matters. Considering pendency before HC, Tribunal held that it would be inappropriate to adjudicate issue on merits at this stage. Accordingly, matter was restored to file of CIT(A)/NFAC with direction to await decision of Hon’ble Jurisdictional High Court & thereafter adjudicate de-novo in accordance with law, following principles of natural justice. Appeal of Assessee was allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT RAIPUR
The captioned appeal preferred by the assessee emanates from the order of the Ld.CIT(A)/NFAC, Delhi dated 28.08.2025 for the assessment year 2016-17 as per the following grounds of appeal:
“1. That, on the facts and in law, the assessment order dt. 19/12/2018 is bad in law and liable to be quashed.
2. That, on the facts and law, the Ld. CIT(A) erred in confirming the addition of Rs. 8,68,750.00 made by the AO by way of disallowance of 25% purchases made from M/s Agrawal Agro, alleging it to be bogus. The impugned disallowance is baseless and not called for and, it is liable to be deleted.
3. That, the appellant reserves the right to add, alter or delete any ground.”
2. Parties herein submitted that the issue pertains to the fact that the assessee herein is a rice miller and that as alleged by the Department he had obtained the benefit of bogus purchase bills from various agents and hence, the bogus purchase amount @ Rs.25% was added to the total income of the assessee. In this regard, Ld. Sr. DR submitted that this issue of obtaining benefits through bogus purchase bills by rice millers is sub-judice before the Hon’ble Jurisdictional High Court vide various cases filed before the said forum. She had submitted a list of the cases which are as follows:
“1. Keshari Rice Industries (ITA No. 410/RPR/2024 dt. 23.12.2024) for the Asstt. Year 2016-17.
2. Kishore Kumar Panjwani (378/RPR/2024 d. 08.10.2024) for the Asstt. Year 2014-15.
3. Arvind Kumar Agrawal-(51/RPR/2025 dt. 18.03.2025) for the Asstt. Year 2015-16.
4. Sandeep Agrawal-MA. No. 22/RPR/2019 dated 28.05.2024 (Arising out of ITA No. 16/RPR/2016) for the Asstt. Year 2010-11.
5. Sudhir Kumar Bansal (Filed recently Limitation 11.12.2025)
6. Gurunanak Rice Industries – (ITA 370/RPR/2024 dt. 02.09.2024) for the Asstt. Year 2015-16.”
3. In this scenario, it would not be appropriate for this Bench to determine the facts and circumstances pertaining to the said additions on issue of procurement of bogus purchase bills by the assessee. At the same time, it would also not serve any logical purpose by keeping the matter pending at this level and therefore, it would be most appropriate that the said matter be remanded back to the file of the CIT(A)/NFAC and that the first appellate authority shall wait for the decision of the Hon’ble Jurisdictional High Court in the aforestated matters on the issue stated herein, and thereafter shall adjudicate denovo as per law while complying with the principles of natural justice.
