Ashvinbhai Keshvlala Patel Vs ITO (ITAT Ahmedabad)
₹30.76 Crore Bullion Purchases Under Scanner: Entire Purchase Disallowed? ITAT Says Check ITC, Supplier’s Status & Money Trail First
Assessee, a bullion trader, declared income of ₹8,87,380. AO treated purchases of ₹30,76,08,006 from M/s Yoro Bullion Pvt. Ltd. as bogus after GST number cited in invoices was found cancelled w.e.f. 25.11.2019, all bills being subsequent, the party was non-traceable & notice u/s 133(6) remained un-complied.
CIT(A) confirmed addition. Before Tribunal, Assessee argued GST registration was active at transaction time, purchases were supported by invoices, stock summary, cheque payments & sales to other parties, alternatively that only GP addition can be made. Tribunal held that a crucial aspect—whether ITC of ₹92,28,240 (3% GST) on these purchases was claimed & accepted/rejected—was never examined by AO or CIT(A). Tribunal directed AO to verify GST returns, ITC status, examine supplier’s assessment, trace bank trail of funds paid to Yoro Bullion & re-examine genuineness of transactions after providing opportunity. Appeal allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal is filed by the assessee against the order of the National Faceless Appeal Centre (NFAC), Delhi (in short “the CIT(A)”) dated 12.03.2025 for the Assessment Year (A.Y.) 2021-22 in the proceeding under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
