BHAVESH RANCHHODAS MADIYAR,MUMBAI V. ACIT 27 1 MUMBAI, MUMBAI

CO 210/MUM/2024

AI Insights

The case involves M/s. E-Land Apparels Ltd., the appellant, who filed a cross objection in relation to ITA No. 399/Mum/2017 for the assessment year 2010-11. The main contention in the CO was regarding the treatment of alleged bogus purchases amounting to Rs.6,48,89,661. The appellant argued that these purchases were neither debited to the Profit & Loss Account nor claimed as revenue expenditure, except for a small amount of Rs.18,563. The remaining amounts were capitalized or debited to Capital Work in Progress, on which no depreciation was claimed. The CIT(A) had directed that only a portion of these amounts should be disallowed. However, the CO was dismissed due to procedural issues, including being time-barred and lack of interest from the assessee in pursuing the objection.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34708 (ITAT-MUMBAI)
• Appeal Type: Cross Objection
• Pronouncement Date: 06-02-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: misc
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Condonation of delay; Revenue expenditure; Depreciation; Bogus purchase; Bogus
• Section: 13

Judgement Text

"Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “E”, MUMBAI BEFORE SHRI B R BASKARAN, ACCOUNTANT MEMBER & SHRI RAJ KUMAR CHAUHAN, JUDICIAL MEMBER C.O. No. 210/MUM/2024 (A.Y. 2010-11) M/s. E-Land Apparels Ltd. 509, 5th floor, Western Edges- 1, W.E. Highway, Maga Thane, Borivali (W), Mumbai-66 PAN:AACCM6461E Vs. DCIT CC 6(3) Room No. 1925, 19th floor, Air India Building, Nariman Point, Mumbai-400 021 (Appellant) (Respondent) Assessee Represented by : None Department Represented by : Shri Hemanshu Joshi (Sr. DR.) Date of conclusion of Hearing : 09.01.2025 Date of Pronouncement : 06.02.2025 O R D E R PER RAJ KUMAR CHAUHAN (J.M.): 1. The aforesaid cross objection (CO) filed by the appellant/assessee in ITA No. 399/Mum/2017 for AY 2010-11 on the following grounds of appeal:- 1. On the facts and in the circumstances of the case, the learned AO erred in not appreciating the fact that the alleged bogus purchases of Rs.6,48,89,661 were CO NO. 210MUM/2024 M/s. E-Land Apparels Ltd. Page | 2 neither debited to the P&L A/c nor claimed as revenue expenditure as alleged but for a small amount of Rs.18,563. Out of the balance of Rs.6,48,71,098 a sum of Rs.87,46,282 was capitalized to the Block of assets on which only Rs.8,67,389 was claimed as depreciation and the balance of Rs.5,59,24,816 was debited to the Capital Work in Progress of the respondent company on which no depreciation has been claimed. The CIT(A) rightly directed that only 12.5% of Rs.8,67,389 & Rs.18,563 is to be disallowed. 2. The cross-objector craves leave to add to, amend, alter or delete the foregoing ground of cross-objection. 2. This CO was filed on 22.08.2017 and while registering, the Registry has raised the objection no. 5 stating that the CO is time barred by 13 days and affidavit and condonation of delay has not been filed. The matter came for conclusion of hearing on 09.01.2025 wherein none appeared on behalf of the assessee and on all dates, none appeared and the notice sent to the assessee at the given address has been returned unserved. The last report of the postal authority dated 21.12.2024, is stating that the “address moved”. 3. Ld. DR stated that since the assessee has not moved any application for condonation of delay and the CO is time barred by 13 days, therefore the CO is liable to be dismissed. CO NO. 210MUM/2024 M/s. E-Land Apparels Ltd. Page | 3 4. In the facts and circumstances of the case, it is evident that the assessee is not interested in the cross objection as they have not given reply to the notices sent to them nor appeared before the bench. Apart from that, the CO is time barred by 13 days and no affidavit or condonation of delay has been filed. Therefore, we are of the opinion that the assessee is not interested to pursue his case. Accordingly, CO filed by the assessee is dismissed. 5. In the net result, the CO filed by the assessee is dismissed. Order pronounced in the open court on 06.02.2025 Sd/- Sd/- (B R BASKARAN) (RAJ KUMAR CHAUHAN) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) Mumbai / Dated 06.02.2025 Dhananjay, Sr. PS Copy of the Order forwarded to: 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// CO NO. 210MUM/2024 M/s. E-Land Apparels Ltd. Page | 4 BY ORDER (Asstt. Registrar) ITAT, Mumbai "