ITO 24(3)(5), MUMBAI V. RANJANBEN DODIA, MUMBAI

ITA 1446/MUM/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 0513 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 11-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY J SETHI
• Keywords: Bogus purchase; Set aside
• Section: 69C; 133(6); 148

Judgement Text

1 ITA NO.1446/MUM/2019 SMT. RANJANBEN DODIA IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC MUMBAI BEFORE SHRI VIKAS AWASTHY (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 1446/MUM/2019 ASSESSMENT YEAR: 2009-10 ITO-24(3)(5) ROOM NO.509, 5 TH FLOOR, PIRAMAL CHAMBERS, LAL BAUG PAREL, MUMBAI-400 012 VS. SMT. RANJANBEN DODIA 1/3, DODIA COMPOUND PARSI PANCHAYAT CROSS ROAD AMBVADI, ANDHERI(EAST) MUMBAI-400 069 PAN NO. ACXPD3141N APPELLANT RESPONDENT REVENUE BY : SHRI SANJAY J. SETHI , DR ASSESSEE BY : NONE DATE OF HEARING : 08 /03/2021 DATE OF PRONOUNCEMENT : 12/03/2021 ORDER PER N.K. PRADHAN, A.M. THE CAPTIONED APPEAL FILED BY THE REVENUE IS DIRECT ED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-36, MUM BAI [IN SHORT CIT(A)] AND ARISES OUT OF THE ASSESSMENT COMPLETED U/S 143( 3) R.W.S. 147 OF THE INCOME TAX ACT 1961, (THE ACT). THOUGH THE CASE WAS FIXED FOR HEARING ON 12.03.2020 , 14.01.2021 & 08.03.2021, NEITHER THE ASSESSEE NOR HIS AUTHORIZED REPRESENTATIVE (AR) APPEARED BEFORE THE TRIBUNAL ON ABOVE DATES. AS THE RE IS NON-COMPLIANCE BY 2 ITA NO.1446/MUM/2019 SMT. RANJANBEN DODIA THE ASSESSEE, WE ARE PROCEEDING TO DISPOSE-OFF TH IS APPEAL AFTER EXAMINING THE MATERIALS AVAILABLE ON RECORD AND AFTER HEARING THE LD. DEPARTMENTAL REPRESENTATIVE (DR). 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E ASSESSEE FILED HER RETURN INCOME FOR THE AY 2009-10 ON 12.09.2009 DECLARING T OTAL INCOME OF RS.2,69,380/-. ON THE RECEIPT OF INFORMATION FROM T HE SALES TAX DEPARTMENT, GOVERNMENT OF MAHARASHTRA THAT THE ASSESSEE HAD OBT AINED BOGUS PURCHASE BILLS AMOUNTING TO RS.19,16,902/- FROM SEVEN PARTI ES, THE ASSESSING OFFICER (AO) ISSUED NOTICE U/S 148 OF THE ACT FOR REOPENING THE ASSESSMENT. DURING THE COURSE OF RE-ASSESSMENT PROCEEDINGS, THE AO ISSUED NOTICE U/S 133(6) TO THE SAID PARTIES TO VERIFY THE GENUINENESS OF THE PURCH ASES. HOWEVER, THOSE NOTICES WERE RETURNED UN-SERVED BY THE POSTAL AUTHORITIES W ITH THE REMARKS NOT KNOWN. THE AO FURTHER RECORDED THAT THE ASSESSEE F AILED TO PRODUCE THE SAID PARTIES BEFORE HIM FOR EXAMINATION. CONSIDERING TH E ABOVE FACTS, THE AO MADE AN ADDITION OF THE TOTAL AMOUNT OF RS.19,16,902/- A S BOGUS PURCHASES U/S 69C OF THE ACT. 3. IN APPEAL, THE LD.CIT(A) BY FOLLOWING THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR AY 2011-12 RESTRICTED THE D ISALLOWANCES TO 5% OF THE BOGUS PURCHASES OF RS.19,16,902/- WHICH COMES TO RS .95,845/-. 4. BEFORE US, THE LD. DR SUBMITS THAT THE OR DER PASSED BY THE LD. CIT(A) BE SET ASIDE AND THE ORDER PASSED BY THE AO BE RESTORE D. WE HAVE HEARD THE LD.DR AND PERUSED THE RELEVANT M ATERIALS AVAILABLE ON RECORD. THE NATURE OF THE BUSINESS OF THE ASSESSEE IN THE PRESENT CASE IS 3 ITA NO.1446/MUM/2019 SMT. RANJANBEN DODIA MANUFACTURING OF LIFT PARTS. HERE, AS RECORDED BY T HE AO, THE ASSESSEE FILED BEFORE HIM INVOICES OF PURCHASES AND SOME EVIDENCES OF PAYMENT. THE AO COULD HAVE VERIFIED THE CONTENTS IN THE PURCHASE IN VOICES AND THE GENUINENESS OF PAYMENTS. HE HAS NOT DONE SO. IN THE INSTANT CA SE, THE LD.CIT(A) HAS RIGHTLY FOLLOWED THE ORDER OF THE TRIBUNAL IN ASSESSEES OW N CASE FOR AY 2011-12. FACTS BEING IDENTICAL, WE AFFIRM THE ORDER OF THE LD.CIT( A). 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 12/03/2021 SD/- SD/- (VIKAS AWASTHY) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED:12/03/2021 THIRUMALESH SR. P.S. COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSISTANT REGISTRAR) ITAT, MUMBAI