ITO, 27(1)(1), MUMBAI V. ABDULLAH ABDULKARIM SHAIKH, MUMBAI

ITA 1138/MUM/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4415 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 28-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R BHOOPATI
• Keywords: Bogus purchase
• Section: 139(1); 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH SMC, MUMBAI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO.1138/M/2019 ASSESSMENT YEAR: 2009-10 ITO 27(1)(1), ROOM NO.406, 4 TH FLOOR, TOWER NO.6, VASHI RAILWAY STATION COMMERCIAL COMPLEX, VASHI, NAVI MUMBAI 400 703 VS. SHRI ABDULLAH ABDULKARIM SHAIKH, 11, KURLA INDUSTRIAL PREMISES, N.S.S. ROAD, NARAYAN NAGAR, GHATKOPAR (W), MUMBAI 400 086 PAN: AAGPK2886A (APPELLANT) (RE SPONDENT) PRESENT FOR: ASSESSEE BY : NONE REVENUE BY : SHRI R. BHOOPATI, SR. D.R. DATE OF HEARING : 11.02.2020 DATE OF PRONOUNCEMENT : 18.02.2020 O R D E R PER RAJESH KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVEN UE AGAINST THE ORDER DATED 28.11.2018 OF THE COMMISSIO NER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS TH E CIT(A)] RELEVANT TO ASSESSMENT YEAR 2009-10. 2. DURING THE COURSE OF HEARING, NEITHER ASSESSEE N OR HIS AUTHORIZED REPRESENTATIVE APPEARED TO ATTEND THE HE ARING NOR ANY APPLICATION SEEKING ADJOURNMENT WAS FILED. THER EFORE, WE ARE DISPOSING OFF THE APPEAL AFTER HEARING THE LD. D.R. AND GOING THROUGH THE FACTS OF THE CASE. ITA NO.1138/M/2019 SHRI ABDULLAH ABDULKARIM SHAIKH 2 3. THE ONLY ISSUE RAISED BY THE REVENUE IS AGAINST THE DELETION OF ADDITION OF RS.4,42,987/- BY LD. CIT(A) AS MADE BY THE AO ON ACCOUNT OF BOGUS PURCHASES. 4. THE FACTS IN BRIEF ARE THAT THE ASSESSEE FILED R ETURN OF INCOME UNDER SECTION 139(1) OF THE ACT ON 29.09.200 9 DECLARING AN INCOME OF RS.2,00,681/-. THEREAFTER THE CASE OF THE ASSESSEE WAS REOPENED UNDER SECTION 147 OF THE ACT BY ISSUIN G NOTICE UNDER SECTION 148 DATED 30.03.2014 AFTER AO RECEIVE D INFORMATION FROM DGIT (INVESTIGATION), MUMBAI AND S ALES TAX DEPARTMENT, GOVERNMENT OF MAHARASHTRA THAT ASSESSEE IS BENEFICIARY OF HAWALA PURCHASE ENTRIES. ACCORDINGL Y, THE AO CALLED UPON THE ASSESSEE TO PROVE THE GENUINENESS O F THE SAID PURCHASES. THE ASSESSEE FILED COPIES OF PURCHASE B ILLS, VOUCHERS, PAYMENT DETAILS AND DELIVERY CHALLANS ETC . HOWEVER, AO WAS NOT SATISFIED WITH THE REPLY OF THE ASSESSEE AND ADDED THE ENTIRE BOGUS PURCHASES OF RS.6,10,679/- TO THE INCOME OF THE ASSESSEE BY HOLDING THAT ASSESSEE HAS NOT PRODUCED THE CONSUMPTION OF THE ALLEGED MATERIAL PURCHASED IN TH E MANUFACTURING PROCESS. 5. IN THE APPELLATE PROCEEDINGS, LD. CIT(A) PARTLY ALLOWED THE APPEAL OF THE ASSESSEE BY SUSTAINING THE ADDITION @ 27.46% BEING AVERAGE GP OF THE LAST THREE YEARS BY FOLLOWI NG THE DECISION OF HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS . SIMIT P. SHETH 356 ITR 451 (GUJARAT HC). 6. AFTER HEARING THE LD. DR AND PERUSING THE MATER IAL ON RECORD AND IMPUGNED ORDER, WE NOTE THAT THE LD. CIT (A) HAS ITA NO.1138/M/2019 SHRI ABDULLAH ABDULKARIM SHAIKH 3 PASSED A VERY REASONED AND SPEAKING ORDER WHICH DOE S NOT REQUIRE ANY INTERFERENCE FROM OUR SIDE. 7. WE ALSO NOTE THAT THE ASSESSEE HAS NOT CHALLENGE D THE ORDER OF LD. CIT(A) WHEREIN THE LD. CIT(A) HAS PART LY SUSTAINED THE ADDITION TO 27.46%. UNDER THESE CIRCUMSTANCES, WE ARE INCLINED TO DISMISS THE REVENUES APPEAL BY UPHOLDI NG THE ORDER OF LD. CIT(A). 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18.02.2020. SD/- SD/- (C.N. PRASAD) (RAJESH KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 18.02.2020. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY /ASSTT. REGISTRAR, ITAT, MUMBAI.