ANANT HALWAI P.LTD, THANE V. ITO WD 1(1), MUMBAI

ITA 1192/MUM/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 0346 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 07-03-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: CHAITANYA ANJARIA
• Assessee Lawyers: SUBODH RATNAPARKHI
• Keywords: Reopening of assessment; Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI AMARJIT SINGH , JM ITA NO. 1192 / MUM/20 16 ( ASSESSMENT YEAR : 2009 - 10 ) M/S. ANANT HALWAI PVT. LTD., MATRU SMRUTI, KASARHAT BAZARPETH, MAHAVIR PRABHU CHOWK, KALY AN (W) DIST: THANE 421301 VS. ITO, WARD 1(1) KALYAN 1 ST FLOOR, MOHAN PLAZA, WAYALE NAGAR, KHADAK PADA, KALYAN (W) 421 301 PAN/GIR NO. AADCA3392B APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI SUBODH RATNAPARKHI REVENUE BY SH RI CHAITANYA ANJARIA DATE OF HEARING 05 / 09 /201 8 DATE OF PRONOUNCEMENT 12 / 09 / 201 8 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 2, THANE DATED 15/01/2016 FOR A.Y.2009 - 10 IN THE MATTER OF ORDER PASSED U/S.143(3) R.W.S. 147 OF THE IT ACT. 2. IN THIS APPEAL, ASSESSEE IS AGGRIEVED FOR REOPENING OF ASSESSMENT AS WELL AS ADDITION OF RS.3,03,713/ - MADE ON ACCOUNT OF ALLEGED NON - GENUINE PURCHASES OF PACKING MATERIALS DEBITED TO THE PROF IT AND LOSS ACCOUNT. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. ITA NO. 1192/MUM/2016 M/S. ANANT HALWAI PVT. LTD., 2 4. FACTS IN BRIEF ARE THAT THE ASSESSEE IS A PRIVATE LIMITED COMPANY ENGAGED IN THE BUSINESS OF MANUFACTURE AND SALE OF SWEETS & MILK PRODUCTS. THE RETURN OF INCOME FOR THE YEAR UNDER APPEAL HAS B EEN FILED ON 26.09.2009 DECLARING TOTAL INCOME OF RS.12,52,988/ - . AO RECEIVED CERTAIN INFORMATION REGARDING BOGUS PURCHASES MADE BY THE ASSESSEE, ACCORDINGLY ASSESSMENT WAS REOPENED BY ISSUE OF NOTICE U/S.148 ON 21/03/2013. T HE AO MADE AD DITION OF RS.3,03,713/ - BY DISALLOWING PURCHASES MADE FROM ALL THE THREE PARTIES. 5. BY THE IMPUGNED ORDER, CIT(A) CONFIRMED THE ACTION OF THE AO AGAINST WHICH ASSESSEE IS IN FURTHER APPEAL BEFORE US. 6. WE HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND FROM RECORD THAT THE AO HAD MADE ADDITION OF RS.3,03,713/ - BY DISALLOWING 100% OF THE DISPUTED PACKING MATERIAL AND OTHER PURCHASES FROM 2 PURCHASE PARTIES. THE HON. CIT(A) HAS UPHELD THE ENTIRE DISALLOWANCE. THE ALLEGED PURCHASES ARE SUPPORTED BY TAX INVOICES, LEDGER ACCOUNTS AND FURTHER PAYMENTS HAVE BEEN MOSTLY EFFECTED THROUGH BANKING CHANNELS ONLY. THE ENTIRE RECORD WAS PRODUCED BEFORE THE ID. AO/ CIT (A) AND NO DEFECT OR DEFICIENCY THEREIN HAS BEEN POINTED OUT. IT WAS ALSO CONTENTIO N OF LEARNED AR THAT THE ASSESSEE HAS IN THE COURSE OF ASST. PROCEEDINGS ALSO SUBMITTED QUANTITATIVE ANALYSIS OF PACKING MATERIAL . THE TOTAL PLASTIC CA RRY BA GS PURCHASED BY THE ASSESSEE ARE TO THE TUNE OF RS. 5,38,331/ - , OF WHICH PURCHASES OF RS. 3,01,226/ - STA NDS DISALLOWED. THIS CONSTITUTES 56% OF TOTAL PURCHASES OF PLASTIC CARRY BAGS. THE ASSESSEE WOULD NOT BE ABLE ITA NO. 1192/MUM/2016 M/S. ANANT HALWAI PVT. LTD., 3 TO CARRY ON BUSINESS OF RETAIL SHOP OF SWEET MEATS IN ABSENCE OF PLASTIC CARRY BAGS. CONSIDERING THE TOTALITY OF FACTS AND CIRCUMSTANCES OF THE CASE, WE DIRECT THE AO TO RESTRICT THE DISALLOWANCE TO THE EXTENT OF 1 5% OF THE ALLEGED BOGUS PURCHASES. WE DIRECT ACCORDINGLY. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 12 / 09 /201 8 SD/ - ( AMAR JIT SINGH ) SD/ - (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 12 / 09 /201 8 KARUNA SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT( A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//