2022 (6) TMI 119 - AT - Income Tax

Bogus purchases - unaccounted purchase and sales - CIT(A) while deleting the addition has noted that the original order of the Commercial Tax Department which was the basis of the addition made by AO was set aside by Additional Commissioner of Commercial Tax (Appeals) - HELD THAT - Additional Commissioner of Commercial Tax (Appeals) had restored the matter back to the file of Assessing Officer of Commercial Tax Department. Before us, none of the sides have placed the final order passed in pursuant to the direction of Additional Commissioner of Commercial Tax (Appeals) dated 26.06.2014. In such a situation, we are of the view that the matter needs to be relooked in the light of the final order passed by Assessing Officer of Commercial Tax Department consequent to the directions of Additional Commissioner of Commercial Tax (Appeals) dated 26.06.2014. We, therefore, restore the issue back to the file of CIT(A) to decide the issue afresh after considering the final order passed by Assessing Officer of Commercial Tax Department. Thus the ground of appeal is allowed.- Appeal of the Revenue is allowed for statistical purposes

Issues:
1. Addition on account of bogus purchases
2. Non-appearance of the assessee leading to an ex parte decision
3. Reassessment of the addition made on account of unaccounted purchases and sales

Issue 1: Addition on account of bogus purchases
The case involved an appeal by the Revenue against the order of the Commissioner of Income Tax (Appeals) relating to Assessment Year 2010-11. The Assessing Officer had made an addition on account of bogus purchases, which was reduced by the CIT(A). The Revenue contended that the matter should be reconsidered based on subsequent developments related to the order of the Commercial Tax Department. The Tribunal noted that the original order forming the basis of the addition had been set aside by the Additional Commissioner of Commercial Tax (Appeals), and the matter was remitted back to the Assessing Officer of the Commercial Tax Department for re-adjudication. As the final order subsequent to this direction was not presented before the Tribunal, it was decided to remit the issue back to the CIT(A) for fresh consideration after reviewing the final order passed by the Assessing Officer of the Commercial Tax Department. Consequently, the ground of appeal was allowed in favor of the Revenue.

Issue 2: Non-appearance of the assessee leading to an ex parte decision
The Tribunal highlighted the repeated non-appearance of the assessee during the proceedings, despite multiple adjournments and notices issued. Given the lack of representation and the extended timeline of the case, the Tribunal proceeded to dispose of the appeal ex parte in favor of the Revenue after hearing the Learned DR. This decision was based on the continuous absence of the assessee throughout the proceedings, dating back to the initial filing of the appeal in 2017.

Issue 3: Reassessment of the addition made on account of unaccounted purchases and sales
The Tribunal focused on the reassessment of the addition made on account of unaccounted purchases and sales. The CIT(A) had granted partial relief to the assessee, citing developments related to the order of the Commercial Tax Department. The Revenue sought a reconsideration of the matter based on subsequent orders issued by the Additional Commissioner of Commercial Tax (Appeals). The Tribunal agreed with the Revenue's contention and decided to remit the issue back to the CIT(A) for fresh consideration after reviewing the final order passed by the Assessing Officer of the Commercial Tax Department. Consequently, the appeal of the Revenue was allowed for statistical purposes.

In conclusion, the judgment addressed the issues of addition on account of bogus purchases, the non-appearance of the assessee leading to an ex parte decision, and the reassessment of the addition made on account of unaccounted purchases and sales. The Tribunal emphasized the need for a fresh consideration of the matter in light of subsequent developments related to the orders of the Commercial Tax Department, ultimately allowing the appeal of the Revenue for statistical purposes.

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