SHRI BHARATSINGH S. PUROHIT, MUMBAI V. INCOME TAX OFFICER 19(1)(2), MUMBAI

ITA 1281/MUM/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 5250 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-10-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 05-03-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S K BEPARI
• Assessee Lawyers: BHARATSINGH S PUROHIT
• Keywords: Bogus purchase
• Section: 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA, AM I.T.A. NO S . 1281 & 1282/MUM/2018 ( ASSESSMENT YEAR S : 2010 - 11 & 2011 - 12 ) SHRI BHARATSINGH S. PUROHIT PROP. M/S. GEETA STEEL & ENGG. CO., 114 - B, OFFICE NO. 1, GROUND FL OOR, V. P. ROAD, R. K. WADI, OPP. POST OFFICER, MUMBAI - 400 004 VS. INCOME TAX OFFICER 19(1)(2), ROOM NO. 204, MATRU MANDIR, TARDEO, MUMBAI - 400 004 PAN/GIR NO. AOGPP 6328 G ( APPELLANT ) : ( RESPONDENT ) APPELLANT BY : SHRI BHARATSINGH S. PUROHIT RESPONDENT BY : SHRI S. K. BEPARI DATE OF HEARING : 16.10.2018 DATE OF PRONOUNCEMENT : 22.10 .2018 O R D E R PER S HAMIM YAHYA, A. M.: THESE ARE A PPEAL S BY THE ASSESSEE DIRECTED AGAINST THE O RDER OF THE LEAR N ED COMMISSIONER OF INCOME TAX (APPEA LS) - 30, MUMBAI (LD.CIT(A) FOR SHORT) DATED 20.12.2017 AND PERTAINS TO THE A SSESSMENT YEAR S (A.Y.) 2010 - 11 AND 2011 - 12. 2. THE EFFECTIVE ISSUE ARISING OUT OF THE GROUNDS OF APPEAL RAISED IS AGAINST THE ORDER OF THE LD. CIT(A), WHEREIN ADDITION ON ACCOUNT OF BOGUS PURCHASES WAS RESTRICTED TO 6.5% AS AGAINST 15% DONE BY THE ASSESSING OFFICER (A.O. FOR SHORT). 3. UPON HEARING AND CAREFUL CONSIDERATION, I FIND THAT THE ITAT IN ASSESSEES OWN CASE FOR A.Y. 2009 - 10 HAS UPHELD THE ORDER OF THE LD. CIT(A). THIS ORDER OF THE LD. C IT(A) IS A COMMON ORDER INVOLVING THE PRESENT IMPUGNED YEAR ALSO. 2 ITA NOS. 1281 & 1282/MUM/2018 4. IN THE SAID ORDER, THE ITAT HAS VIDE ORDER DATED 09.10.2018 (IN ITA NO. 1280/MUM/2018) HAS CONCLUDED AS UNDER: 2.8 IF THE RATIO LAID DOWN BY HON'BLE JURISDICTIONAL HIGH COURT IN THE AFORESAID CASE OF M/S NIKUNJ EXIMP. ENTERPRISES PVT. LTD.((SUPRA)) IS ANALYZED WITH THE FACTS OF THE PRESENT APPEAL, IT IS NOTED THAT THE ASSESSEE IS PROPRIETOR OF GEETA STEEL AND ENGINEERING COMPANY, ENGAGED IN THE BUSINES S OF TRADING IN FERROUS AND NON - FERROUS METALS, DECLARED INCOME OF RS.5,09,1907 - IN HIS RETURN, FILED ON 26/09/2009, WHICH WAS PROCESSED UNDER SECTION 143(1) OF THE ACT. SUBSEQUENTLY, THE LD. ASSESSING OFFICER RECEIVED INFORMATION FROM THE SALES TAX DEPART RNENT/DGIT(INV.) WITH RESPECT TO ISSUING OF ACCOMMODATION BILLS, WITHOUT EFFECTING THE ACTUAL DELIVERY OF GOODS. THE PARTIES WERE EITHER FOUND NON - EXISTENCE AND WHEREVER FOUND THEY ADMITTED OF CARRYING BOGUS TRANSACTIONS WITH LISTED PARTIES AND FURTHER CON FIRMED THAT THEY ISSUED FALLS BILLS TO THE PRESENT ASSESSEE ALSO. THE DETAILS OF PARTIES, WHO ISSUED ACCOMMODATION BILLS TO THE ASSESSEE ARE SUMMARIZED IN THE ASSESSMENT ORDER. CONSIDERING THE TOTALITY OF FACTS, THE LD. ASSESSING OFFICER DISALLOWED THE BOG US PURCHASES @15% AS NON - GENUINE AND THUS ADDITION OF RS.81,84,280/ - WAS ADDED TO THE TOTAL INCOME OF THE ASSESSEE. ON APPEAL, THE LD. COMMISSIONER OF INCOME TAX (APPEAL), REDUCED THE ADDITION TO 6.5% AS AGAINST 15% MADE BY THE LD. ASSESSING OFFICER. IN TH E STATEMENTS OF FACTS, THE ASSESSEE HAS NOT BROUGHT OUT ANY RECORD WHICH OTHERWISE CAN BE SAID TO BE GENUINE AND RATHER IT IS A CASE OF NON - GENUINE PURCHASES AND THE LD. COMMISSIONER OF INCOME TAX (APPEAL) HAS ALREADY TAKEN A LENIENT VIEW, WHICH REQUIRES N O ALTERATION, CONSEQUENTLY, THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL) IS SUSTAINED, RESULTING INTO DISMISSAL OF APPEAL OF THE ASSESSEE. FINALLY, THE APPEAL OF THE ASSESSEE IS DISMISSED 5. RESPECTFULLY FOLLOWING THE PRECEDENT, I UPHOLD THE ORDER OF THE LD. CIT(A). 6. IN THE RESULT, THE SE APPEALS FILED BY THE ASSESSEE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22.10.2018 SD/ - (S HAMIM YAHYA) A CCOUNTANT MEMBER MUMBAI ; DATED : 22.10.2018 ROSHANI , SR. PS COPY OF THE ORDER F ORWARDED TO : 3 ITA NOS. 1281 & 1282/MUM/2018 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT - CONCERNED 5. DR, ITAT, MUMBAI 6. GUARD F ILE BY ORDER, (DY./ASSTT. REGISTRAR) ITAT, MUMBAI