DOMBIVLI PAPAER MFG. CO.P.LTD, THANE V. ASST CIT CIR 1, KALYAN

ITA 1035/MUM/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1022 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 22-02-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ABHI RAMA KARTIKEYANLD
• Assessee Lawyers: SUBODH RATNAPARKHI LD
• Keywords: Bogus purchase; Reassessment proceedings
• Section: 143(3); 133(6); 147; 148

Judgement Text

ITA NO.1035/MUM/2018 DOMBIVILI PAPER MFG. CO.PVT.LTD. AY :2011-12 1 IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.1035/MUM/2018 ( / ASSESSMENT YEAR:2011-12) DOMBIVILI PAPER MFG. CO.PVT.LTD. B-42, PHASE-I, MIDC GOLAVALI VILLAGE, DOMBIVLI(E), DISTT. THANE-421 203. / VS. A CIT - CIRCLE - 1 KALYAN, MOHAN PLAZA 1 ST FLOOR, WAYLE NAGAR KHADAKPADA, KALYAN DISTT. THANE-421 301. ./ ./PAN/GIR NO. AAACD-5897-M ( ! /APPELLANT ) : ( '#! / RESPONDENT ) APPELLANT BY : SUBODH RATNAPARKHI-LD.AR RESPONDENT BY : ABHI RAMA KARTIKEYAN - LD.DR / DATE OF HEARING : 20/03/2019 / DATE OF PRONOUNCEMENT : 25/03/2019 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2011-12 CONTEST THE ORDER OF L D. COMMISSIONER OF INCOME-TAX (APPEALS)-2, PUNE [IN SHORT REFERRED TO AS CIT(A)], APPEAL NO.(NEW)PN/CIT(A)-2/ACIT-CIR-1/KYN/211/2017-18; APP EAL NO.(OLD): THN/CIT(A)-2/ACIT-CIR-1/KYN/40/2015-16 DATED 14/11/2017 QUA ITA NO.1035/MUM/2018 DOMBIVILI PAPER MFG. CO.PVT.LTD. AY :2011-12 2 CONFIRMATION OF CERTAIN ADDITION OF RS.7.17 LACS ON ACCOUNT OF ALLEGED BOGUS PURCHASES. 2.1 BRIEF FACTS ARE THAT THE ASSESSEE BEING RESIDENT CORPORATE ENTITY STATED TO BE ENGAGED IN MANUFACTURING OF PAPERS WAS SUBJECTED TO REASSESSMENT PROCEEDINGS FOR IMPUGNED AY U/S 143(3) READ WITH SECTION 147 ON 26/02/2015 BY LD. ASSISTANT COMMISSIONER OF INCOME TAX-CIRCLE-1, KALYAN [AO]. THE REASSESSMENT PROCEEDINGS GOT TRIGGERED PURSUANT TO RECEIPT OF CERTAIN INFORMATION FROM SALES TAX DEPARTMENT, MAHARASHTRA & INVESTIGATION WING THAT THE ASSESSEE STOOD BENEFICIARY OF ACCOMMODATION PURCHASE BILLS TO THE TUNE OF RS.7.17 LACS FROM 5 PARTIES, THE DETAILS OF WHICH HAVE BEEN EXTRACTED I N PARA 2 OF THE QUANTUM ASSESSMENT ORDER. ACCORDINGLY, NOTICE U/S 1 48 DATED 20/06/2013 WAS ISSUED TO THE ASSESSEE WHICH WAS FOL LOWED BY STATUTORY NOTICES U/S 143(2) & 142(1). THE ORIGINAL RETURN OF INCOME FILED BY THE ASSESSEE ON 24/09/2011 WAS PROCESSED U/S 143(1). 2.2 THE ASSESSEE COULD NOT SUBSTANTIATE DELIVERY OF MATERIAL WITH COGENT EVIDENCES AND ALSO FAILED TO PRODUCE ANY OF THE SUPPLIERS TO CONFIRM THE TRANSACTIONS. NOTICES SENT U/S 133(6) T O ALL THE SUPPLIERS TO CONFIRM THE TRANSACTIONS DID NOT ELICIT SATISFACTOR Y RESPONSE. ACCORDINGLY, THE PURCHASES WERE DISALLOWED AND ADDED TO THE INCO ME OF THE ASSESSEE. THE STAND OF LD. AO, UPON CONFIRMATION BY FIRST APPELLATE AUTHORITY IS UNDER APPEAL BEFORE US. 3. THE LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESS EE, AT THE OUTSET, DREW OUR ATTENTION TO THE ORDER OF THIS TRIBUNAL IN ASSESSEES OWN CASE FOR AYS 2009-10 & 2010-11 ITA NOS.3571-71/MUM/2016 DATED 18/08/2017 AND SUBMITTED THAT ADDITIONS MAY BE REST RICTED TO 12.5% IN ITA NO.1035/MUM/2018 DOMBIVILI PAPER MFG. CO.PVT.LTD. AY :2011-12 3 TERMS OF THE ORDER. THE LD. DR FAIRLY CONCEDED THAT IDENTICAL ISSUE HAS ALREADY BEEN DECIDED BY THE TRIBUNAL. 4. IN VIEW OF THE ADMITTED POSITION, WE RESTRICT TH E IMPUGNED ADDITIONS TO 12.5% OF ALLEGED BOGUS PURCHASES OF RS.7,17,020/- WHICH COMES TO RS.89,628/- AND DELETE THE BALANCE ADDITION. 5. RESULTANTLY, THE APPEAL STANDS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH MARCH, 2019. SD/- SD/- (MAHAVIR SINGH) ( MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 25/03/2019 SR.PS, JAISY VARGHESE !'#$ # / COPY OF THE ORDER FORWARDED TO : 1. ! / THE APPELLANT 2. '#! / THE RESPONDENT 3. * ( ) / THE CIT(A) 4. * / CIT CONCERNED 5. +, '%- , - , / DR, ITAT, MUMBAI 6. ,./0 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.