NITIN NANDKISHOR BANGAD, MUMBAI V. ITO 17 (2)(4), MUMBAI

CO 255/MUM/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7887 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 20-01-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 18-11-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DHARM VEER SINGH
• Keywords: Bogus purchase; Accommodation entries
• Section: 143(3); 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC , MUMBAI [ BEFORE SHRI SHAMIM YAHYA , HON'BLE A CCOUNTANT M EMBER ] I.T.A. NO. 6693 /MUM/2018 ASSESSMENT YEAR: 2011 - 12 ITO 17(2)(4) MUMBAI .. ............................ APPELLANT ROOM NO. 123B, 1 ST FLOOR, CHURCHGATE, MUMBAI 400 020. VS NITIN NANDKISHOR BANGAD . ........ .......................................... ........................ ................ RESPONDENT 59, GAYA BUILDING, 109 Y.M. ROAD, MASJID MUNDER, MUMBAI 400 003. [PAN: A BAPB 4356 P ] C.O. NO. 255 /MUM/2019 (ARISING OUT OF ITA NO. 6693 /MUM/2018 ) ASSESSMENT YEAR: 2011 - 12 NITIN NANDKISHOR BANGAD. ........ ......................................................................................APPELLANT 59, GAYA BUILDING, 109 Y.M. ROAD, MASJID MUNDER, MUMBAI 400 003. [PAN: ABAPB 4356 P] VS ITO 17(2)(4) MUMBAI .. ........................RESPONDENT ROOM NO. 123B, 1 ST FLOOR, CHURCHGATE, MUMBAI 400 020. APPEARANCES BY: SHRI DHARM VEER SINGH , DR APPEARING ON BEHALF OF THE REVENUE. SHRI VIMAL PUNMIYA , AR APPEARING ON BEHALF OF THE ASSESSEE . DATE OF CONCLUDING THE HEARING : JANUARY 16, 2020 DATE OF PRONOUNCING THE ORDER : JANUARY 20 , 2020 ORDER PER SHRI SHAMIM YAHYA , AM THIS APPEAL FILED BY THE REVENUE AND CROSS - OBJECTION FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE LD. CIT(A) 58, MUMBAI DATED 11.09.2018 FOR AY 2011 - 12 IN THE MATTER OF ORDER PASSED U/S 147 R.W.S. 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT, THE ACT). 2 I.T.A. NO. 6693/MUM/2018 & C.O. NO. 255/MUM/2019 ASSESSMENT YEAR: 2011 - 12 NITIN NANDKISHOR BANGAD 2. THE GRIEVANCE OF THE ASSESSEE AND THE REVENUE REL ATE TO THE ADDITION MADE BY THE A.O. AND PARTLY DELETED BY THE LD. CIT(A) IN RESPECT OF ALLEGED BOGUS PURCHASES. THE A.O. HAS COMPUTED PROFIT AT 15.10% ON THE ALLEGED BOGUS PURCHASES AND BY THE IMPUGNED ORDER, THE LD. CIT(A) CONFIRMED THE ADDITION BY ESTIM ATING INCOME @ 5.25% OF ALLEGED BOGUS PURCHASES. 3. AGAINST THE ABOVE ORDER PASSED THE APPEAL AND CROSS - OBJECTION ARE BEFORE US. THE LEARNED COUNSEL SUBMITTED THAT AN IDENTICAL FACTS THIS TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2009 - 10 BY THE ORDER DATED 09.12.2019 AS HELD AS UNDER: 7. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND FROM THE RECORD THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRADING IN HARDWARE, ELECTRIC GOODS AND TOOK KIT. THE ASSESSEES CASE WAS REOPENED ON THE INFORMATION RECEIVED FROM THE SALES TAX DEPARTMENT REGARDING ASSESSEE OBTAINED ACCOMMODATION ENTRIES. AFTER MAKING ENQUIRY, THE AO MADE ADDITION BY ESTIMATING INCOME AT 15.10% ON ALLEGED BOGUS PURCHASES. BY THE IMPUGNED ORDER, THE LD. CIT(A ) HAS DEALT WITH THE ISSUE THREADBARE AND AFTER CONSIDERING ALL THE FACTS AND CIRCUMSTANCES OF THE CASE UPHOLD ADDITION TO THE EXTENT OF 5025% OF THE ALLEGED BOGUS PURCHASES. NEITHER THE LD. AR NOR THE LD. DR COULD PERSUADE US TO DEVIATE FROM THE FINDING A ND CONCLUSION OF THE LD. CIT(A), ACCORDINGLY, WE UPHOLD THE ORDER OF THE LD. CIT(A) FOR CONFIRMING THE ADDITION TO THE EXTENT OF 5025% ON ALLEGED BOGUS PURCHASES. 8. IN THE RESULT, BOTH I.E. APPEAL OF THE REVENUE AND CROSS - OBJECTION OF THE ASSESSEE ARE DI SMISSED. 4. REFERRING TO THE ABOVE, LEARNED COUNSEL OF THE ASSESSEE CONTENDED THAT THE SAME VIEW SHOULD BE ADOPTED. PER CONTRA, LEARNED DR DID NOT DISPUTE THIS PROPOSITION. ACCORDINGLY, RESPECTFULLY 3 I.T.A. NO. 6693/MUM/2018 & C.O. NO. 255/MUM/2019 ASSESSMENT YEAR: 2011 - 12 NITIN NANDKISHOR BANGAD FOLLOWING THE PRECEDENT AS ABOVE, WE CONFIRMED THE ORD ER OF LD. CIT(A) FOR THE ADDITION @ 5.25% ON ALLEGEDLY BOGUS PURCHASES. 5 . IN THE RESULT, THE APPEAL OF THE REVENUE AS WELL AS ASSESSEES CROSS - OBJECTION ARE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH JANUARY, 2020 . SD/ - ( SHAMIM YAHYA ) ACCOUNTANT MEMBER DATED: 20 /0 1/2020 BISWAJIT , SR. PS COPY OF ORDER FORWARDED TO: 1. NITIN NANDKISHOR BANGAD, 50, GAYA BUILDING, 109 Y.M. ROA D, MASJID BUNDER, MUMBAI 400 003. 2. ITO 17(2)(4), MUMBAI. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, ASSISTANT REGISTRAR / H.O.O. ITAT, MUMBAI