Balmukund Concast Pvt. Ltd. Vs DCIT (ITAT Kolkata)
The case before the Income Tax Appellate Tribunal, Kolkata, involved cross appeals for Assessment Years 2019–20 and 2023–24 concerning additions made by the Assessing Officer on account of alleged bogus purchases, suppression of sales, and unaccounted transactions based on WhatsApp chats.
For AY 2019–20, the Assessing Officer treated purchases of ₹3.11 crore from a supplier alleged to be a shell entity as non-genuine and estimated income by applying a 4% profit rate, resulting in an addition of ₹12.45 lakh. The Commissioner (Appeals) deleted the addition after noting that the assessee had furnished invoices, e-way bills, transport documents, books of account, and confirmations. The books were not rejected under section 145(3), and sales were accepted. The Tribunal upheld this deletion, observing that no independent evidence was brought on record to prove the purchases were bogus and that additions based on estimation were unsustainable when sales were not disputed.
For AY 2023–24, the first issue related to alleged suppression of sales based on discrepancies between dispatch slips and recorded invoices. The Assessing Officer made an addition of ₹47.93 lakh by applying a profit rate on alleged suppressed turnover. The Tribunal found that differences between dispatch slips and invoices could arise due to timing differences, price variations, discounts, and unexecuted orders. It was also noted that some dispatch slips did not result in actual sales. Since no evidence was brought to show receipt of additional consideration, the Tribunal held that the addition was unjustified and directed its deletion.
