INERTECH FITTINGS INDIA P.LTD, MUMBAI V. ASST CIT 15(2)(1), MUMBAI

ITA 2033/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8969 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 22-03-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ARJU GARODIA
• Assessee Lawyers: BHARAT S DESAI
• Keywords: Reopening of assessment; Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL J , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI SANDEEP GOSAIN , JM ITA NO. 2033 / MUM/20 1 7 & 2034/MUM/2017 ( ASSESSMENT YEAR : 2010 - 11 & 2011 - 12 ) M/S. INTERTECH FITTINGS INDIA PVT. LTD., AM - 12P ANAND NAGAR AD DL. MIDC, AMBERNATH (E) - 421506 VS. ASST. CIT 15(2)(1) R.NO.403, 4 TH FLOOR, AAYAKAR BHAWAN M.K.ROAD, MUMBAI 400 020 PAN/GIR NO. AABCI3661D APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI BHARAT S. DESAI REVENUE BY MS. ARJU GARODI A DATE OF HEARING 24 / 08 /201 7 DATE OF PRONOUNCEME NT 26 / 10 /201 7 / O R D E R PER R.C.SHARMA (A.M) : THESE ARE THE APPEAL S FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 24, MUMBAI DATED 06/01/2017 FOR A.Y.2010 - 11 & 2011 - 12 IN T HE MATTER OF ORDER PASSED U/S.143(3) R.W.S. 147 OF THE IT ACT. 2. THE FOLLOWING GROUNDS HAVE BEEN TAKEN BY THE ASSESSEE: - 1) BASED ON FACTS AND CIRCUMSTANCES OF THE CASE ASSESSING OFFICER ERRED IN REOPENING THE ASSESSMENT AND ID. CIT(A) ALSO FAILED TO APPR ECIATE THAT A) THE ASSESSING OFFICER ERRED IN REJECTING THE PRELIMINARY OBJECTIONS RAISED ON THE REOPENING OF THE ASSESSMENT. B) ASSESSING OFFICER OUGHT TO HAVE GIVEN COPIES OF EVIDENCE AND DOCUMENT IN HIS POSSESSION RELYING ON WHICH HE CONCLUDED THAT T HERE IS INDEED INCOME WHICH HAS ESCAPED THE ASSESSMENT. ITA NO. 2033/MUM/2017 & 2034/MUM/2017 M/S. INTERTECH FITTINGS INDIA PVT. LTD., 2 C) REOPENING OF ASSESSMENT WAS UNLAWFUL, INJUDICIOUS, WITHOUT CONSIDERING FACTS OF THE CASE, ARBITRARY, UNILATERAL, WITHOUT CONSIDERING SUBMISSIONS OF THE ASSESSEE AND NEEDS TO BE RECONSIDERED. 2) BA SED ON FACTS AND CIRCUMSTANCES OF THE CASE ASSESSING OFFICER ERRED IN DISALLOWING THE ALLEGED BOGUS PURCHASES AMOUNTING TO RS. 13,26,887/ - AND MAKING THE ADDITION TO INCOME AND LEARNED CIT(A) ALSO FAILED TO CONSIDER THE FOLLOWING POINTS - A) BEFORE MAKING AD DITION TO THE INCOME ASSESSING OFFICER OUGHT TO HAVE CONSIDERED SUBMISSIONS OF THE ASSESSEE. B) ASSESSING OFFICER FAILED TO APPRECIATE THAT ASSESSEE BE GIVEN A PROPER OPPORTUNITY TO DEFEND HIMSELF, ASSESSEE OUGHT TO HAVE BEEN GIVEN AN OPPORTUNITY TO CROSS EXAMINE WITNESSES AND EXAMINE STATEMENT OF WITNESSES EXTRACTED BY ASSESSING OFFICER. C) ADDITION TO INCOME IS WITHOUT CONSIDERING SUBMISSIONS OF ASSESSEE, WITHOUT GIVING AN OPPORTUNITY TO ASSESSEE TO PROTECT HIMSELF, WITHOUT EXAMINING THE DETAILS F ILED BY ASSESSEE, UNLAWFUL, INJUDICIOUS, UNILATERAL, ARBITRARY AND NEEDS TO BE DELETED. 3) BASED ON FACTS AND CIRCUMSTANCES OF THE CASE LEARNED CIT (APPEAL) FAILED TO APPRECIATE THAT THE ADDITION MADE BY A.O IS BASED ON PRESUMING THE INC OME CONSIDERING GROSS PROFIT PERCENTAGE AS BASIS AND ALSO FAILED TO CONSIDER THAT - A) BEFORE MAKING PRESUMPTIVE ASSESSMENT ASSESSING OFFICER OUGHT TO HAVE CONCLUSIVELY ESTABLISHED CASE OF BOGUS PURCHASE IN HANDS OF ASSESSEE. B) ASSESSING OFFICER EARED IN MAKING ASSESSMENT BASED ON ASSUMPTIONS, PRESUMPTIONS, ESTIMATES, SURMISES AND PREMISES. ASSESSING OFFICER FAILED TO APPRECIATE THAT THERE IS NO BASIS FOR ESTIMATING BOGUS PURCHASES AT GROSS PROFIT PERCENTAGE OF ALLEGED BOGUS PURCHASE FROM SAME PARTIES. C) ADDITION IS MADE BASED ON ASSUMPTIONS, ESTIMATES, PRESUMPTIONS, IS ARBITRARY, INJUDICIOUS UNILATERAL WITHOUT CONSIDERING FACTS OF THE CASE AND WITHOUT CONSIDERING SUBMISSIONS BY ASSESSEE AND NEEDS TO BE DELETED, 4) THE APPELLANT CRAVES LEAVE TO ADD, AME ND, ALTER / VARY AND / OR WITHDRAW / ANY OR ALL THE ABOVE GROUNDS OF APPEAL. 3. SIMILAR ADDITION WAS MADE BY THE AO IN THE A.Y.2011 - 12. 4. AT THE OUTSET, LEARNED AR PLACED ON RECORD LETTER DATED 17/08/2017 REQUESTING FOR WITHDRAWAL OF BOTH THE APPEALS. ITA NO. 2033/MUM/2017 & 2034/MUM/2017 M/S. INTERTECH FITTINGS INDIA PVT. LTD., 3 5 . LEARNED DR HAS NO OBJECTION FOR SUCH WITHDRAWAL. ACCORDINGLY BOTH THE APPEALS ARE DISMISSED AS WITHDRAWN. 5. IN THE RESULT BOTH THE APPEALS ARE DISMISSED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 26 / 10 /2017 S D/ - ( SANDEEP GOSAI N ) S D/ - ( R.C.SHARMA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 26 / 10 /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), MUM BAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//