Income-tax Officer, Ward - 14 (2), Pune V. Yusuf Ismail Shaikh, Pune

ITA 1360/PUN/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8792 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 11-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S P WALIMBE
• Keywords: Bogus purchase
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL , VICE PRESIDENT . / ITA NO S . 1359 & 1360 /PUN/20 1 9 / ASSESSMENT YEA R S : 20 09 - 10 & 2011 - 12 THE INCOME TAX OFFICER WARD 14(2), PUNE .... / APPELLANT / V/S. SHRI YUSUF ISMAIL SHAIKH SR. NO.54, PLOT NO.93, SWAMI VIVEKANAND ESTATE, HANDEWADI ROAD, HADAPSAR, PUNE 411028 PAN : ARZPS2085B / RESPONDENT A SSESSEE BY : SHRI SHARAD SHAH, CA REVENUE BY : SHRI S.P. WALIMBE (ADDL.CIT) / DATE OF HEARING : 17 . 0 1.20 20 / DATE OF PRONOUNCEMENT : 17 .01.2020 / ORDER PER R.S. SYAL, VP : TH ESE TWO APPEALS BY THE REVENUE RELATE TO THE ASSESSMENT YEARS 2009 - 10 AND 201 1 - 1 2 . SINCE COMMON ISSUE S ARE RAISED IN THESE APPEALS, I AM , THEREFORE, PROCEEDING TO DISPOSE THEM OFF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2 ITA NO S . 1359 & 1360 /PUN/20 1 9 A.Y S . 20 09 - 10 & 2011 - 12 2 . THE ONLY ISSUE INVOLVED IN BOTH THE APPEALS IS AGAINST RESTRICTING THE ADDITION MADE BY THE AO ON ACCOUNT OF BOGUS PURCHASES. 3 . BRIEFLY THE FACTS FOR THE ASSESSMENT YEAR 2009 - 10 ARE THAT THE ASSESSING OFFICER, ON VERIFICATION OF INFORMATION RECEIVED FROM THE MAHARASHTRA SALES TAX DEPARTMENT, OBSERVED THAT THE ASSESSEE WAS ONE OF THE BENEFICIARIES OF HAWALA PURCHASE BILLS. SUCH AMOUNT OF BILLS STOOD AT RS. 12 , 81 ,1 37 / - . HE MADE THE ADDITION EQUAL TO THE AMOUNT OF HAWALA PURCHASE BILLS, WHICH GOT RESTRICTED TO 15% IN THE FIRST APPEAL. 4 . THE FACTS OF THE APPEAL FOR THE ASSESSMENT YEAR 201 1 - 1 2 ARE SIMILAR. FOR THIS YEAR, THE ASSESSEE WAS FOUND TO HAVE PROCURED HAWALA PURCHASE BILLS FOR A SUM OF RS. 3 , 49 , 78 3 / - . THE ASSESSING OFFICER MADE ADDITION FOR THE EQUAL SUM, WHICH GOT RESTRICTED TO 15% IN THE FIRST APPEAL. 5 . THE REVENUE IS AGGRIEVED BY THE DELETION OF THE PART ADDITION FOR BOTH THE YEARS. 6 . HAVING HEARD BOTH SIDES AND GONE THROUGH THE RELE VANT MATERIAL AVAILABLE ON RECORD, IT IS OBSERVED THAT THE ASSESSEE ALLEGEDLY PURCHASED RAW MATERIAL THROUGH THE HAWALA PURCHASE BILLS AND THEREAFTER CONSUMED THE SAME IN THE MANUFACTURE OF FINISHED GOODS. IN SUCH A SITUATION, IT CANNOT BE SAID THAT THE E NTIRE AMOUNT OF PURCHASE BILLS REQUIRES ADDITION. THE HONBLE JURISDICTIONAL HIGH COURT IN PR.CIT VS. PARAMSHAKTI DISTRIBUTORS PVT. LTD., VIDE ITS JUDGMENT DATED 15.07.2019 IN ITA NO.413/2017, HAS SUSTAINED THE ADDITION @ 10% OF THE AMOUNT OF PURCHASES , B EING , THE PROFIT 3 ITA NO S . 1359 & 1360 /PUN/20 1 9 A.Y S . 20 09 - 10 & 2011 - 12 ELEMENT INVOLVED THEREIN. SINCE THE LD. CIT(A) IN THESE APPEALS HAS RESTRICTED THE ADDITION TO 15%, WHICH IS HIGHER THAN THAT APPROVED IN THE ABOVE PRECEDENT, IN MY CONSIDERED OPINION, THERE CAN BE NO GRIEVANCE AT THE END OF THE REVENUE. 7 . IN THE RESULT, THE APPEAL S ARE DISMISSED . ORDER PRO NOUNCED ON 17 TH DAY OF JANUARY , 20 20 . SD/ - R.S. SYAL /VICE - PRESIDENT / PUNE; / DATED : 17 TH JANUARY , 20 20 . GCVSR / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT 3. THE CIT (APPEALS) - 7 , PUNE . 4. THE PR. CIT - 6 , PUNE . 5. , , - , / DR, ITAT, SMC BENCH, PUNE. 6. / GUARD FILE. / BY ORDER, //TRUE COPY// / SR. PRIVATE SECRETARY , / ITAT, PUNE 4 ITA NO S . 1359 & 1360 /PUN/20 1 9 A.Y S . 20 09 - 10 & 2011 - 12 * * DATE 1 DRAFT DICTATED ON 17 . 0 1.20 20 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 17 . 0 1.20 20 SR. PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR. PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR. PS/PS 7 DATE OF UPLOADING OF ORDER SR. PS/PS 8 FILE SENT TO BENCH CLERK SR. PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER