NIKHIL JAYKUMAR SHAH, KALYAN V. ITO WD 3(3), KALYAN

ITA 200/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9801 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 10-01-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SAURABH DESH
• Assessee Lawyers: REEPAL TRALSHAWALA LD
• Keywords: Bogus purchase; Reassessment proceedings
• Section: 69C; 143(3); 133(6); 147; 148

Judgement Text

ITA NO 200/MUM/2017 NIKHIL JAYKUMAR SHAH ASSESSMENT YEAR 2011-12 IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI . . , , BEFORE SHRI D.T. GARASIA, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO. 200/MUM/2017 ( / ASSESSMENT YEAR: 2011-12) NIKHIL JAYKUMAR SHAH PUSHPAM BUNGLOW AGRA ROAD OPP. NAMASKAR MANDAL KALYAN(W) KALYAN-421 301 / VS. INCOME TAX OFFICER WARD 3(3) 2 ND FLOOR, RANI MANSION, NEAR SBI, MURBAD ROAD, KALYAN(W) KALYAN-421 301 ! ./ ./PAN/GIR NO . BAJPS-5221-D ( !# /APPELLANT ) : ( $%!# / RESPONDENT ) ASSESSEE BY : REEPAL TRALSHAWALA, LD. AR REVENUE BY : SAURABH DESHPANDE, LD. DR / DATE OF HEARING : 21/08/2017 / DATE OF PRONOUNCEMENT : 23/08/2017 ITA NO 200/MUM/2017 NIKHIL JAYKUMAR SHAH ASSESSMENT YEAR 2011-12 2 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE CAPTIONED APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2011-12 ASSAILS THE ORDER OF LD. COMMISSIONER OF IN COME TAX (APPEALS)-1 [CIT(A)], MUMBAI DATED 14/10/2016 QUA CONFIRMATION OF CERTAIN ADDITIONS ON ACCOUNT OF BOGUS PURCHASES. THE LEGAL GROUND CONTESTING THE VALIDITY OF REASSESSMENT PROCEEDINGS HAS BEEN WITHDRAWN AND HENCE, THE SAME IS DISMISSED IN LIMINE. 2.1 BRIEFLY STATED, THE ASSESSEE BEING RESIDENT INDIVIDUAL ENGAGED AS CONTRACTOR UNDER PROPRIETORSHIP CONCERN NAMELY UNIVERSAL TRADING CO., WAS SUBJECTED TO ANY ASSESSMENT U/S 143(3) READ WITH SECTION 147 FOR IMPUGNED AY ON 16/03/2015 AT RS.1,07,55,008/- AFTER ADDITION OF BOGUS PURCHASES U/S 69C FOR RS.1,04,04,248/-. THE ORIGINAL RETURN WAS FILED AT RS.3,50,760/- ON 30/09/2011, WHICH WAS PROCESSED U/ S 143(1). THE ASSESSEE REFLECTED TURNOVER OF RS.158.59 LACS WITH GP RATE OF 5.57%. 2.2 THE REASSESSMENT PROCEEDINGS WERE INITIATED UPO N RECEIPT OF CERTAIN INFORMATION FROM SALES TAX DEPARTMENT, MAHARASHTRA REGARDING DEALERS INDULGING IN BOGUS PURCHASES BILLS AND IT WAS NOTED THAT THE ASSESSEE STOOD BENEFICIARY OF SUCH BOGUS PURCHASE BILLS TO THE TUNE OF RS.1,04,04,248/- FROM 6 PARTIES. CONSEQUENTLY, NOTI CE U/S 148 DATED 23/05/2013 WAS ISSUED WHICH WAS FOLLOWED BY STATUTO RY NOTICES U/S 142(1)/143(2). 2.3 TO CONFIRM THE PURCHASE TRANSACTIONS, NOTICES U /S 133(6) WERE ISSUED TO THE ALLEGED BOGUS SUPPLIERS, HOWEVER, THE SAME WERE RETURNED ITA NO 200/MUM/2017 NIKHIL JAYKUMAR SHAH ASSESSMENT YEAR 2011-12 3 BACK UN-SERVED WHICH WAS CONFRONTED TO THE ASSESSEE. THE ASSESSEE PRODUCED PURCHASES INVOICES AND CONTENDED THAT THE PURCHASES WERE GENUINE. HOWEVER, NOT CONVINCED, LD. AO TREATED THE SAME AS BOGUS PURCHASES AND ADDED THE SAME TO THE INCOME OF THE ASSESSEE. 3. AGGRIEVED, THE ASSESSEE CONTESTED THE SAME WITH PARTIAL SUCCESS BEFORE LD. CIT(A) VIDE IMPUGNED ORDER DATED 14/10/2 016 WHO CONFIRMED THE ADDITION TO THE EXTENT OF 18% OF BOGUS PURCHASES. AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 4. THE LD. REPRESENTATIVE FOR ASSESSEE [AR], AT THE OUTSET, DREW OUR ATTENTION TO THE FACT THAT THE ORDER OF LD. CIT(A) IS COMBINED ORDER FOR AY 2010-11 & 2011-12 SINCE ASSESSEE SUFFERED SIMILAR A DDITIONS IN AY 2010-11 ALSO WHICH WAS CONTESTED UP-TO THE LEVEL OF THIS TRIBUNAL VIDE ITA NO. 199/MUM/2017 ORDER DATED 30/06/2017 WHERE T HE ADDITION HAS FURTHER BEEN RESTRICTED TO 10% AND THEREFORE, THE S AME VIEW MAY BE TAKEN IN THE PRESENT CASE. THE LD. DR, WHILE OPPOSI NG, FAIRLY CONCEDED THE SAME. THE COPY OF TRIBUNALS ORDER (SMC BENCH) HAS BEEN PLACED BEFORE US. 5. HEARD AND PERUSED THE CITED ORDER OF THE TRIBUNA L IN ASSESSEES OWN CASE. WE FIND THAT THE IMPUGNED ORDER IS COMMON ORDER FOR AY 2010-11 & 2011-12. IN THE PRECEDING AY, THE TRIBUNA L HAS RESTRICTED THE ADDITIONS TO 10%. THERE BEING NO CHANGE IN FACTS OR CIRCUMSTANCES EXCEPT FOR MINOR VARIATIONS, TAKING THE SAME STAND, WE RESTRICT THE ADDITIONS TO 10% OF ALLEGED BOGUS PURCHASES WHICH COMES TO RS.10,40,425/-. 6. RESULTANTLY, THE ASSESSEES APPEAL STANDS PARTL Y ALLOWED. ITA NO 200/MUM/2017 NIKHIL JAYKUMAR SHAH ASSESSMENT YEAR 2011-12 4 ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD AUGUST, 2017. SD/- SD/- (D.T. GARASIA) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 23. 08.2017 SR.PS:- THIRUMALESH ! / COPY OF THE ORDER FORWARDED TO : 1. !# / THE APPELLANT 2. $%!# / THE RESPONDENT 3. , ( ) / THE CIT(A) 4. , / CIT CONCERNED 5. $'. , . , / DR, ITAT, MUMBAI 6. / / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI