Bogus bills issued by M/s Asian Tube Trading

In the Income-Tax Appellate Tribunal,
Amritsar Bench, Amritsar
Before : Shri Laliet Kumar, Judicial Member And
Dr. Mitha Lal Meena, Accountant Member
ITA Nos.589/Asr/2014& C.O. 52/Asr/2016
Assessment Year2010-11

ACIT,
Amritsar
(Appellant)

vs

M/s. Bishan Steel, Industries
Top floor, Bishan House,
Kamla Nagar Market
Deori, Amritsar
PAN: AAAFB9250F
(Respondent)

Appellant by Sh. Charan Das, DR
Respondent by Sh. Tarun Badal, Adv.

Date of Hearing 14.07.2021
Date of Pronouncement 24.08.2021

ORDER

Whether worthy Commissioner of Income Tax (Appeal) has not erred in law in not taking cognizance of assessee's own admission that M/s Asian Tube Trading is a fictitious firm of his parent Firm Mis Na yak Steel.

2. Whether worthy Commissioner of Income Tax (Appeal) was right in ignoring the material facts of the case that there was difference in the quality and quantity of goods purchased and goods sold by the assessee which is contrary to the assessee's claim that he had directly sold the goods without taking delivery itself.

3. Asian Tube Trading, Mumbai subject to maintenance of same paint quality a+icn clearly proves that M/s. Asian Tube Trading, Mumbai was part of M/s. Nyka Steels Pvt. Ltd. In similar circumstances Jurisdictional High Court has held in the case of CIT vs. Leaders Valves Pvt. Ltd 285 ITR 435 that as consumption stood fully proved the existence of parties can not be denied. In this case it was also held that if purchases are treated as bogus it would be impossible to manufacture the goods shown to have been manufactured. Similarly in the present case it would be impossible to have such quantitative sale and profits in absence of such purchases.

4. In the result the appeal of the revenue as well as CO of the assessee are allowed for statistical purposes.

Please find attached the enclosed file for the full judgement