JCIT)OSD), CENTRAL CIRCLE-5(1), Mumbai V. HICON CONSTRUCTION , Mumbai

ITA 1119/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2273 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-12-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2008-2009
• Appeal Filed On: 27-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GURBINDER SINGH LD
• Keywords: Bogus purchase
• Section: 147; 144

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI , , BEFORE HONBLE SHRI SAKTIJIT DEY, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO.1119/MUM/2019 ( / ASSESSMENT YEAR: 2008-09) & ./ I.T.A. NO.1120/MUM/2019 ( / ASSESSMENT YEAR: 2010-11) J CIT (OSD) CENTRAL CIRCLE-5(1) ROOM NO.1926, 19 TH FLOOR AIR INDIA BLDG., NARIMAN POINT MUMBAI-400 021. / VS. M/S. HICONS CONSTRUCTION B-201, LEO APARTMENTS 24 TH ROAD, KHAR(W) MUMBAI-400 052. PAN/GIR NO. AAEFH - 3281 - J ( '# /APPELLANT ) : ( $%'# / RESPONDENT ) ASSES SEE BY : NONE REVENUE BY : SHRI GURBINDER SINGH -LD.SR. DR / DATE OF HEARING : 01/12/2020 / DATE OF PRONOUNCEMENT : 01/12/2020 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. BY WAY OF THESE APPEALS FOR ASSESSMENT YEARS (AY ) 2008-09 AND 2010-11, THE DEPARTMENT CHALLENGES THE COMMON ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-53, MUMBAI [CI T(A)], DATED 2 28/11/2018 WHICH HAS RESTRICTED THE ADDITION ON ACC OUNT OF ALLEGED BOGUS PURCHASES TO 25%. 2. NONE APPEARED FOR ASSESSEE AT THE TIME OF HEARIN G AND NO VALID ADJOURNMENT APPLICATION WAS ON RECORD. HOWEVER, WE FIND THAT THE IMPUGNED ORDER IS COMMON ORDER FOR AYS 2007-08, 200 8-09 & 2010-11. THE APPEAL OF THE REVENUE FOR AY 2007-08 HAS ALREAD Y BEEN DISMISSED BY COORDINATE BENCH OF THIS TRIBUNAL IN ITA NO. 111 8/MUM/2019 ORDER DATED 12/02/2020. FACTS ARE IDENTICAL IN ALL THE TH REE YEARS AND THEREFORE, WE ARE INCLINED TO FOLLOW THE EARLIER ORDER OF THE TRIBUNAL. 3. FACTS IN AY 2008-09 ARE THAT THE ASSESSEE HAS BE EN ASSESSED U/S 144 R.W.S. 147 VIDE ORDER DATED 19/02/2015. IN THE SAID ORDER, THE ASSESSEE WAS SADDLED WITH CERTAIN ADDITIONS ON ACCO UNT OF ALLEGED BOGUS PURCHASES AGGREGATING TO RS.288.45 LACS FROM TWO ENTITIES, THE DETAILS OF WHICH HAVE ALREADY BEEN EXTRACTED IN PAR A-3 OF THE ASSESSMENT ORDER. THE ASSESSEE FAILED TO APPEAR BEF ORE LD. AO DURING ASSESSMENT PROCEEDINGS. THEREFORE, GOING BY THE MAT ERIAL ON RECORD, THE SAID PURCHASES WERE DISALLOWED AND ADDED TO THE INC OME OF THE ASSESSEE IN ITS ENTIRETY. SIMILAR ARE THE FACTS IN AY 2010-11 WHEREIN THE ASSESSEE WAS SADDLED WITH SIMILAR ADDITIONS OF RS.1 94.04 LACS. 4. UPON FURTHER APPEAL, LD. CIT(A) OBSERVED THAT TH E DISALLOWANCE SO MADE WOULD YIELD ABNORMAL HIGH PROFITS AND THEREFOR E, THE ADDITIONS WERE TO BE ESTIMATED AT 25% OF AGGREGATE PURCHASES. AGGR IEVED, THE REVENUE IS IN FURTHER APPEAL BEFORE US. 5. WE FIND THAT THE TRIBUNAL HAS ALREADY DISMISSED APPEAL OF REVENUE FOR AY 2007-08 VIDE ITA NO.1118/MUM/2019 ORDER DATE D 12/02/2020 WHEREIN THE ESTIMATION OF 25% HAS BEEN UPHELD BY TH E COORDINATE BENCH. RESPECTFULLY FOLLOWING THE SAME, WE DISMISS BOTH TH E APPEALS. 3 6. BOTH THE APPEALS STAND DISMISSED. ORDER PRONOUNCED ON 01 ST DECEMBER, 2020. SD/- SD/- (SAKTIJIT DEY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 01/12/2020 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.