SHIAVAM MACHINE TOOLS, THANE V. ACIT CIR 3, THANE

ITA 1021/MUM/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0171 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 14-02-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V JANARDHANAN
• Assessee Lawyers: MAYUR J GOSARANI
• Keywords: Bogus purchase

Judgement Text

, SMC , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES SMC, MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA NO.1021/MUM/2017 : ASST.YEAR 2009-2010 M/S.SHIVAM MACHINE TOOLS PLOT NO.268, NR.MITHILA TANKS POKHRAN ROAD NO.1, UPVAN THANE 400 602. PAN : AAEFS0853P. / VS. ASST.COMMISSIONER OF INCOME - TAX CIRCLE 3 THANE. ( / APPELLANT) ( / RESPONDENT) /APPELLANT BY : SHRI MAYUR J.GOSARANI /RESPONDENT BY : SHRI V.JANARDHANAN (SR.DR) / DATE OF HEARING : 29.06.2017 / DATE OF PRONOUNCEMENT : 03.07.2017 / O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT (APPEALS) DATED 30.11.2016 AND PERTAINS TO ASSESSMENT YEAR 2009- 2010. 2. IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED BY THE CONFIRMATION OF 100% OUT OF BOGUS PURCHASES. 3. I HAVE HEARD BOTH THE COUNSEL AND PERUSED THE RECORDS. THE LEARNED DEPARTMENTAL REPRESENTATIVE REFERRED TO THE DECISION OF HONBLE GUJARAT HIGH COURT IN THE CASE OF N.K.INDUSTRY V. DCIT [IT APPEAL NO.240 OF 2003 DATED 20.06.2016] WHEREIN THE HONBLE GUJARAT HIGH COURT HAD HELD THAT 100% OUT OF BOGUS PURCHASES SHOULD BE ADDED INSTEAD OF 25% ALLOWED BY THE ITAT. ITA NO.1021/MUM/2017. M/S.SHIVAM MACHINE TOOLS. 2 THE SPECIAL LEAVE PETITION AGAINST THIS ORDER HAS BEEN DISMISSED BY THE HONBLE APEX COURT BY ORDER DATED 16.01.2017. 4. THE LEARNED COUNSEL OF THE ASSESSEE SUBMITTED THAT LEARNED CIT(A) HAS PASSED COMBINED ORDER FOR THREE YEARS. IN TWO YEARS, HE HAS DISALLOWED 25% AND IN THIS YEAR HE HAS DISALLOWED 100%. I FIND THAT THE LEARNED CIT(A) CANNOT TAKE AN INCONSISTENT STAND. I MODIFY HIS ORDER AND DIRECT THAT THE DISALLOWANCE SHOULD BE RESTRICTED TO 25% OF THE BOGUS PURCHASES. THE LEARNED COUNSEL OF THE ASSESSEE AGREED TO THIS. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS PARTLY ALLOWED. ORDER PRONOUNCED ON THIS 03 RD DAY OF JULY, 2017. SD/- ( SHAMIM YAHYA ) ACCOUNTANT MEMBER MUMBAI; DATED : 03 RD JULY, 2017. DEVDAS* / COPY OF THE ORDER FORWARDED TO : / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT, MUMBAI. 4. / CIT(A), MUMBAI 5. , , / DR, ITAT, MUMBAI 6. [ / GUARD FILE.