Amit Product Vs ITO (ITAT Jaipur)
In the matter of Amit Product vs ITO before the ITAT Jaipur, the assessee challenged an order issued under Sections 147 read with 144 of the Income Tax Act, 1961, for the assessment year 2013-14. The primary contention was the addition of ₹32,88,862 under Section 69C of the Act, related to alleged bogus purchases from M/s. Pawan Enterprises. The assessee disputed the legality and factual basis of the reassessment, arguing that the order lacked jurisdiction and was based on unsubstantiated claims. The additions were made after the Assessing Officer relied on information suggesting M/s. Pawan Enterprises was involved in providing accommodation entries without actual supply of goods. The proprietor of Pawan Enterprises had admitted to issuing bogus bills, and this information, along with VAT filings showing the disputed purchases, formed the basis of reopening the case under Section 148.
Despite these findings, the assessee maintained that it had maintained a proper day-to-day stock register, its books of accounts were otherwise accepted by the AO, and no discrepancies were found in other financial statements. The books showed genuine sales and profits. The AO did not allow the cross-examination of the supplier or obtain proper responses from the broker and transporter involved. The assessee argued that the denial of such examination and the lack of response from third parties undermined the fairness of the proceedings. Nonetheless, the tax authorities remained unconvinced, citing the supplier’s affidavit and VAT filings as credible indications of bogus transactions.
