ITO-4(3)(1) Vs NIBR Bullion Pvt. Ltd. (ITAT Mumbai)
ITAT sets aside CIT(A) order for improper evaluation of evidence and remands and restores the matter
Summary: In , the Income Tax Appellate Tribunal set aside the order of the Commissioner of Income Tax (Appeals) in the case of ITO-4(3)(1) Vs NIBR Bullion Pvt. Ltd. and restored the matter to the Assessing Officer for fresh adjudication. The dispute arose from transactions between the assessee and M/s Swastic Corporation, where a survey under Section 133A revealed that the proprietor, Shri Bijal Ashok Shah, had admitted to providing accommodation entries alongside genuine business transactions. He explained that sale bills were issued without actual delivery of goods, goods were sold in the grey market, and cash was returned after deducting commission, with such entries marked as “E” in Tally records. Based on these findings, the Assessing Officer reopened the assessment and made additions under Section 68, citing lack of confirmations, transport details, delivery challans, and discrepancies in invoices. Although the CIT(A) deleted the additions on the basis of invoices, ledger accounts, bank statements, and a later retraction of the statement, the Tribunal held that documentary records alone do not establish genuineness when surrounding evidence indicates otherwise. It further observed that an unsubstantiated delayed retraction cannot dilute the evidentiary value of the original statement, and that treatment of the amount as purchases in books or non-addition in the hands of the alleged entry provider was not decisive. Holding that the Tally data and survey findings required deeper examination, including the possibility of bogus purchases and profit suppression, the Tribunal remanded the matter for fresh consideration in accordance with law.
