DCIT Vs Rajesh Chimanlal Patel (ITAT Ahmedabad)
The Income Tax Appellate Tribunal (ITAT), Ahmedabad, decided the Revenue’s appeals and the corresponding cross objections filed by the assessee for Assessment Years 2018-19 to 2020-21 through a common order.
The assessee, an individual engaged in the business of civil construction and infrastructure projects, filed his return of income for AY 2018-19 declaring total income of ₹3,24,52,470. The assessment was reopened under Section 147 of the Income Tax Act, 1961, on the basis of information flagged under the Risk Management Strategy alleging that the assessee had obtained bogus accommodation purchase entries amounting to ₹54,75,907 from M/s India Steel Impex.
During the reassessment proceedings, the Assessing Officer (AO) observed that the assessee failed to furnish e-way bills, purchase vouchers, delivery challans, bilty and weighment slips. The supplier did not respond to notices issued under Section 133(6), and physical verification reportedly showed that the supplier was not available at the stated address. The AO also relied upon the statement of the proprietor of M/s India Steel Impex, who had admitted to issuing accommodation bills without actual movement of goods. Holding that payments through banking channels alone did not establish genuineness, the AO treated the entire purchase amount of ₹54,75,907 as unexplained expenditure under Section 69C and taxed it under Section 115BBE.
