RAMESHKUMAR A. SHAH, MUMBAI V. ITO WD 19(3)(1), MUMBAI

ITA 1510/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9705 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 23-05-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 03-03-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S K MITRA
• Assessee Lawyers: RAJESH CHAMARIA
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM ITA NO. 1510 / MUM/20 1 7 ( ASSESSMENT YEAR : 2009 - 10 ) RAJESHKUMAR A SHAH PROP. KRISHNA PIPE & ENGG. INDS., 32/33, 2 ND FLOOR, HARIHARWAL BUILDING, S.V.P. ROAD, OPP. MOTI CINEMA, MUMBAI 400 004 VS. ITO WD 19(3)(1) R.NO.219, 2 ND FLOOR MATRU MANDIR, TARDEO, MUMBAI - 400007 PAN/GIR NO. AAEPS6776P APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI RAJESH CHAMARIA REVENUE BY SHRI S.K. MITRA DATE OF HEARI NG 06 / 09 /201 7 DATE OF PRONOUNCEME NT 12 / 09 /201 7 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY ASSESSEE AGAINST THE ORDER OF CIT(A) - 30, MUMBAI DATED 24/12/2016 FOR THE A.Y. 2009 - 10 IN THE MATTER OF ORDER PASSED U/S143( 3) R.W.S. 147 OF THE IT ACT. 2. ONLY GRIEVANCE OF ASSESSEE RELATES TO UPHOLDING ADDITION OF 12.5% BEING ESTIMATED PROFIT ON BOGUS PURCHASES. 3. I HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND FROM RECORD THAT ON THE BASIS OF INFORMATION FROM SALES TAX DEPAR TMENT IN RESPECT OF BOGUS SUPPLIERS, THE AO CALLED THE ASSESSEE TO EXPLAIN THE SAME. AFTER CONSIDERING ASSESSEES CONTENTION, AO HELD THAT ASSESSEE HAS EARNED ESTIMATED EXTRA PROFIT OF 25% OF SUCH BOGUS PURCHASE. ACCORDINGLY, HE ADDED 25% OF SUCH PURCHASE IN ASSESSEES INCOME. ITA NO. 1510/MUM/2017 RAJESHKUMAR A SHAH 2 4. BY THE IMPUGNED ORDER, CIT(A) RESTRICTED ADDITION TO THE EXTENT OF 12.5%. 5. ASSESSEE IS IN FURTHER APPEAL BEFORE US. 6. I HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND FROM RECORD THAT AVERAGE GP RATE IN THE TRADE ASSESSEE IS ENGAG ED IS 8.69%, HOWEVER, DURING THE YEAR UNDER CONSIDERATION ASSESSEE HAS DISCLOSED GP OF 13.8% ON THE SALES OF ALLEGED PURCHASES. KEEPING IN VIEW TOTALITY OF FACTS AND CIRCUMSTANCES OF THE CASE, WE DEEM IT PROPER TO RESTRICT THE ADDITION TO THE EXTENT OF 10% BEING EXTRA PROFIT EARNED BY ASSESSEE OF SUCH BOGUS PURCHASES. 7. IN THE RESULT, APPEAL IS ALLOWED IN PART. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 12 / 09 /2017 S D/ - ( R.C.SHARMA ) ACCOUNTANT MEMBER M UMBAI ; DATED 12 / 09 /201 7 KARUNA SR. PS 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//