BHUPENDRA M. MUNDADA, MUMBAI V. DEPUTY COMMISSIONER OF INCOME, CENTRAL CIRCLE 2(2), MUMBAI

ITA 14/MUM/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7485 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 02-01-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: N HEMALATH
• Assessee Lawyers: M SUBRAMANIAN
• Keywords: Bogus purchase; Unexplained investment; Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI SANDEEP GOSAIN , JM ITA NO. 14 / MUM/20 18 & ITA NO.15/MUM/2018 ( ASSESSMENT YEAR : 2009 - 10 & 2010 - 11 ) SHRI BHUPENDRA M. MUNDADA, ROOM NO.5, MAHARAJA CHAWAL MA HARAJA APARTMENT COMPOUND OPP. TELEPHONE EXCHANGE S.V. ROAD, MALAD (W) MUMBAI 400 064 VS. DCIT CIRCLE 2(2) MUMBAI PAN/GIR NO. AADPM3710A APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI M.SUBRAMANIAN REVENUE BY MS. N. HEMALATH DATE OF HEARING 17 / 04 /201 8 DATE OF PRONOUNCEME NT 19 / 04 /201 8 / O R D E R PER R.C.SHARMA (A.M) : THESE ARE THE APPEALS FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 48 DATED 31/10/2017 FOR THE A.Y.2009 - 10 AND 2010 - 11 IN THE MA TTER OF ORDER PASSED U/S.143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961. 2. IN BOTH THE APPEALS, ASSESSEE IS AGGRIEVED FOR ADDITION OF 100% ON ACCOUNT OF BOGUS PURCHASES UNDER THE HEAD UNEXPLAINED INVESTMENT IN PURCHASES. ITA NOS. 14 & 15/MUM/2018 SHRI BHUPENDRA M. MUNDADA 2 3. IT WAS CONTENDED BY LEARNED A R THAT ALL DETAILS DESIRED BY THE AO WERE SUBMITTED AND THE AO WITHOUT APPRECIATING THE FACTS OF THE CASE FULLY AND PROPERLY AND WITHOUT GIVING PROPER OPPORTUNITY OF BEING HEARD IN THE MATTER PROCEEDED TO COMPLETE THE ASSESSMENT BY MAKING ADDITION UNDER TH E HEAD UNEXPLAINED INVESTMENT IN PURCHASES. 4. OUR ATTENTION WAS ALSO INVITED TO THE DOCUMENTS PLACED ON RECORD, WHICH INDICATE THAT PURCHASES SO MADE WAS REFLECTED IN THE PURCHASE REGISTER/ LEGER, STOCK REGISTER AND ALSO BANK BOOK. IT WAS ALSO CONTENDED THAT ALL THE PAYMENTS ARE MADE THROUGH CHEQUES AND ARE REFLECTED IN THE ASSESSEES BOOKS OF ACCOUNTS. OUR ATTENTION WAS ALSO INVITED TO THE CORRESPONDING SALES BILLS WITH REGARD TO THESE PURCHASES. HE FURTHER SUBMITTED THAT CORRESPONDING SALES HAVE BEEN ACCEPTED BY THE AO AND BOOKS OF ACCOUNTS WERE NOT REJECTED. VARIOUS JUDICIAL PRONOUNCEMENTS OF THE TRIBUNAL WERE PLACED ON RECORD WHEREIN ADDITION ON ACCOUNT OF THE BOGUS PURCHASES HAS BEEN CONFIRMED TO THE EXTENT OF 12.5%. AS THE FACTS AND CIRCUMSTANCES I N THE INSTANT CASE ARE SAME, RESPECTFULLY FOLLOWING THE DECISION OF THE CO - ORDINATE BENCHES AS PLACED ON RECORD, WE DIRECT THE AO TO RESTRICT THE ADDITION TO THE EXTENT OF 12.5% OF THE ALLEGED BOGUS PURCHASES. WE DIRECT ACCORDINGLY. 3. IN THE RESULT, APPEA L IN BOTH THE YEARS ARE ALLOWED IN PART. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 19 / 04 /201 8 SD/ - ( SANDEEP GOSAIN ) SD/ - ( R.C.SHARMA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 19 / 04 /201 8 KARUNA SR. PS ITA NOS. 14 & 15/MUM/2018 SHRI BHUPENDRA M. MUNDADA 3 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//