ITO Vs Greta Energy Limited (ITAT Chennai)
In the case of ITO vs. Greta Energy Limited, the Income Tax Appellate Tribunal (ITAT) Chennai dealt with cross-appeals arising from an assessment order issued by the Assessing Officer (AO) under sections 147 and 144B of the Income Tax Act. The main issue was the addition of Rs. 92.43 lakhs on account of alleged bogus purchases from a non-existent supplier, M/s. Shree Om Sai Industries Pvt. Ltd. The AO had reopened the assessment based on a claim that the purchases were made from an entity that no longer existed at the address provided. Despite notices issued to the assessee, no adequate response was received, and the AO added the amount under section 69C of the Act.
The Commissioner of Income Tax (Appeals) (CIT(A)) partially granted relief by restricting the addition to the gross profit percentage shown by the assessee, but also ruled that the addition would not be eligible for a deduction under section 80-IA. This decision led to cross-appeals before the ITAT. The tribunal found that the assessee had failed to substantiate the transactions with sufficient evidence, and the supplier’s address verification showed the entity no longer existed. However, it also acknowledged that the assessee had submitted additional evidence that could influence the outcome. Consequently, the ITAT remanded the case back to the AO for re-adjudication, including consideration of the new evidence. Additionally, the issue of deduction under section 80-IA was also to be re-examined if necessary. The appeals were allowed for statistical purposes, and the matter was sent back to the lower authorities for a fresh assessment.
