Case Number: ITA 1907/DEL/2020
Appellant: Veetee Fine Foods Limited, Sonipat
Respondent: Addl. CIT Range-26, New Delhi
Assessment Year: 2012-13
Case Filed On: November 27, 2020
Order Type: Final Tribunal Order
Date of Order: October 18, 2022
Pronounced On: October 18, 2022
This appeal, filed by Veetee Fine Foods Ltd. for the assessment year 2012-13, challenges the order of the Commissioner of Income Tax (Appeals)-9, New Delhi, dated September 15, 2020. The main issues in this case were the initiation of proceedings under section 147 of the Income Tax Act and the addition of Rs. 2,29,328/- on account of alleged bogus purchases.
The appellant raised the following grounds:
During the assessment proceedings, the assessee filed a return declaring a loss of Rs. 40,90,70,911/-. The assessment order, passed under section 143(3) on January 27, 2017, determined a loss of Rs. 17,91,70,330/- after disallowing Rs. 22,99,00,581/-. The assessment proceedings were reopened under section 147, with the Assessing Officer issuing a notice under section 148 of the Act. The Assessing Officer disallowed Rs. 2,29,328/- on the grounds that it represented bogus purchases.
The CIT (A) dismissed the appeal, stating that M/s. Hari Trading (Prop. Pardeep) was a dummy entity created by Shri Hitesh Jain, and confirmed the addition of Rs. 2,29,328/-.
On behalf of the appellant, it was argued that all evidence supporting the genuineness of the purchases was produced during both the assessment and appellate proceedings. The payment of Rs. 2,29,328/- was made through banking channels, demonstrating the authenticity of the transaction. The lower authorities erred in making and sustaining the addition.
The Department, represented by Shri Vivek Vardhan, JCIT, supported the orders of the lower authorities.
The tribunal, after hearing both parties and perusing the material on record, found that the amount of Rs. 2,29,328/- was received from Shree Trading Company through proper banking channels. In the absence of any material evidence to the contrary and considering the quantum of the amount, the tribunal decided to delete the addition sustained by the CIT (A).
The appeal of the assessee was allowed.
In conclusion, the tribunal found in favor of Veetee Fine Foods Ltd., Sonipat, by deleting the addition of Rs. 2,29,328/- made by the Assessing Officer and confirmed by the CIT (A). The tribunal held that the proceedings under section 147 were initiated without proper jurisdiction and that the purchases in question were genuine, supported by substantial evidence and proper banking transactions.
Order pronounced in the Open Court on October 18, 2022.
Members Present:
Shri B. R. R. Kumar, Accountant Member
Shri Yogesh Kumar US, Judicial Member
Dated: October 18, 2022
Veetee Fine Foods Ltd., Sonipat vs. Addl. CIT Range-26, New Delhi – ITA 1907/DEL/2020
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