Issue of Benefits obtained through Bogus Purchase Bills by Rice Millers is sub-judice before the High Court: ITAT remands matter [Read Order]

The Income Tax Appellate Tribunal (ITAT), Raipur Bench, remanded a matter as the issue of benefits obtained through bogus purchase bills by rice millers is sub-judice before the High Court.

The facts state that based on information received from the Investigation Wing, Raipur, a case was reopened under Section147 after obtaining approval under Section 151 from the competent authority. This information received that the assessee-appellant, Maa Chandi Rice Industries, was a beneficiary of accommodation entries in the nature of bogus purchases from two proprietors.

The proprietors had admitted before the Income Tax Officer (ITO), Raipur that their concerns were engaged only in providing bogus purchase bulls and all transactions made were not related to any real business activities. The amounts received from beneficiaries were returned in cash after rotation through bank accounts.

Despite opportunities presented to the assessee-appellant, they failed to produce any documentary evidence regarding actual movement of goods from supplier to assessee and from assessee to customer. The appellant had submitted that the matter pertains to the issue of obtaining benefits through bogus purchase bills by rice millers which is sub-judice before the Jurisdictional High Court.

The bench of Avdhesh Kumar Mishra (Accountant Member) and Partha Sarathi Chaudhary (Judicial Member) followed the pronouncement in M/s Gindlani Rice Mill v. ITO-1(2), Raipur (2026) and held that on the same parity of reasoning and maintaining rule of consistency, the order is to be set aside. The tribunal remanded the matter and allowed the appeal.

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