SHAILESH DATTATRAY THAKARE, THANE V. ITO 3(3), THANE

ITA 1442/MUM/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9969 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 16-03-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Bogus purchase; Principle of natural justice; Accommodation entries
• Section: 69C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'D' BENCH, MUMBAI BEFORE SHRI P K BANSAL, VICE PRESIDENT AND SHRI D.T. GARASIA, JUDICIAL MEMBER ITA NO.1442 /MUM/2016 (ASSESSMENT YEAR: 2009-10) SHRI SHAILESH DATTATRA THAKARE VS. INCOME TAX OFFICER - 3(3) 701, E WING, YASH ANAND CHS GISHNUNAGAR, UAUPADA THANE (W) 400602 THANE PAN ABZPTO0626 APPELLANT RESPONDENT APPELLANT BY: SHRI DEVENDRA JAIN RESPONDENT BY: SHRI PURUSHOTTAM KUMAR DATE OF HEARING: 05.07.2017 DATE OF PRONOUNCEMENT: 10.07.2017 O R D E R PER D.T. GARASIA, JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-1, AURANGABAD DATED 29.12.2015 FOR A.Y. 2009 -10. 2. THE FOLLOWING GROUNDS WERE RAISED BY THE ASSESSEE I N THE APPEAL: - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LEARNED CIT(A) HAS ERRED IN PASSING THE ORDER EX-PARTE AND THEREBY VIOLATING THE PRINCIPLES OF NATURAL JUSTICE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LEARNED CIT(A) HAS ERRED IN UPHOLDING THE ADDITION MADE BY THE ASSESSING OFFICER OF RS.38,61,698/- U/S. 69C ON ACC OUNT T OF ALLEGED BOGUS PURCHASES. 3. SHORT FACTS OF THE CASE ARE THAT DURING THE ASSESSM ENT PROCEEDINGS THE AO FOUND THAT THE ASSESSEE HAS MADE PURCHASES F ROM SWASTIK SALES AGENCY PVT. LTD., NAVODAY TRADE IMPEX PVT. LTD., RA JESHWARI TRADING PVT. LTD. AND ELECON IMPEX PVT. LTD. WHICH WERE IN THE N ATURE OF HAWALA TRANSACTION OR ACCOMMODATION ENTRIES. THE SALES TAX DEPARTMENT OF GOVERNMENT OF MAHARASHTRA HAS CONDUCTED AN ENQUIRY AND IT WAS FOUND ITA NO. 1442/MUM/2016 SHRI SHAILESH DATTATRA THAKARE 2 THAT THEY ARE IN THE BUSINESS OF GIVING ACCOMMODATI ON BILLS AND HAWALA TRANSACTION. THEREFORE, THE AO TRIED TO VERIFY THE PURCHASES MADE BY THE ASSESSEE FROM THE ABOVE PARTIES BUT THE ASSESSEE CO ULD NOT PRODUCE THESE PARTIES BEFORE THE AO. THEREFORE THE AO MADE ADDITI ON ON ACCOUNT OF BOGUS PURCHASES OF ` 38,61,698/-. 4. THE MATTER WAS CARRIED BEFORE THE CIT(A) AND THE CI T(A) PASSED AN ORDER EX-PARTE. 5. DURING THE COURSE OF HEARING THE LEARNED A.R. SUBMI TTED THAT THE ASSESSEE HAS SUBMITTED BANK STATEMENTS, STOCK REGIS TER AS WELL AS BILLS WITH DELIVERY CHALLANS BEFORE THE AO. THEREFORE THE MATTER MAY BE DECIDED HERE. WE FIND FROM THE ORDER OF THE CIT(A) THAT THE ASSESSEE DID NOT ATTEND THE PROCEEDINGS BEFORE THE CIT(A) DESPITE THE NOTIC ES UNDER SECTION 250 OF THE I.T. ACT. THEREFORE IN THE INTEREST OF JUSTICE AND FAIR PLAY WE RESTORE THIS MATTER TO THE FILE OF THE CIT(A) WITH THE DIRECTION TO DECIDE THE ISSUE AFTER AFFORDING OPPORTUNITY OF HEARING TO THE ASSESSEE. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLO WED. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH JULY, 2017. SD/ - SD/ - (P.K. BANSAL) (D.T. GARASIA) VICE PRESIDENT JUDICIAL MEMBER MUMBAI, DATED: 10 TH JULY, 2017 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -1, AURANGABAD 4. THE CIT - 2, THANE 5. THE DR, D BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.