FAGIOLI INDIA P.LTD, MUMBAI V. ASST CIT (HQ)(JDL) CIT-14,

ITA 2094/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9430 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 24-03-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ARJU GARODIA
• Keywords: 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. 2094 / MUM/20 1 7 ( ASSESSMENT YEAR : 2011 - 12 ) M/S. FAGIOLI INDIA PVT. LTD., 104, A WING, DELPHI BUILDING, HIRANANDANI BUSINESS PARK, P OWAI 400076 VS. ASST. CIT (HQ) (JDL) C?IT - 14 PAN/GIR NO. AAACF6372K APPELLANT ) .. RESPONDENT ) ASSESSEE BY MS. NEHA PARANJPE REVENUE BY MS. ARJU GARODIA DATE OF HEARING 24 / 08 /201 7 DATE OF PRONOUNCEME NT 18 / 09 /2 01 7 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 22, MUMBAI DATED 19/01/2017 FOR THE A.Y.2011 - 12 IN THE MATTER OF ORDER PASSED U/S.143(3) OF THE IT ACT. 2. THE FOLLOWING GROUNDS HAVE BEEN TAKEN BY THE ASSESSEE: - THE LEARNED COMMISSION OF INCOME - TAX (APPEALS) ERRED IN CONFIRMING THE ADDITION TO THE EXTENT OF 12.5% OF THE PURCHASES OF RS.20,81,882/ - ADDED BY THE ASSESSING OFFICER AS BOGUS PURCHASES. YOUR APPELLANTS SUBMIT THAT EVEN 12.5% OF RS.20,81,882/ - I.E., RS.2,60,235/ - OUGHT NOT TO BE ADDED TO THE INCOME OF THE APPELLANTS AND THE ENTIRE ADDITION ON ACCOUNT OF PURCHASES OUGHT TO HAVE BEEN AND BE DELETED. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. ITA NO. 2094/MUM/2017 M/S. FAGIOLI INDIA PVT. LTD., 2 4. DURING THE COURSE OF SC RUTINY ASSESSMENT, AO FOUND THAT ASSESSEE HAS MADE BOGUS PURCHASES. AFTER CONSIDERING THE ASSESSEES CONTENTION, AO MADE ADDITION TO THE EXTENT OF 12.5% OF SUCH PURCHASES. 5. BY THE IMPUGNED ORDER, CIT(A) CONFIRMED THE ACTION OF THE AO AGAINST WHICH ASSESS EE IS IN FURTHER APPEAL BEFORE US. 6. WE HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND THAT BOTH AO AND CIT(A) HAVE VERY REASONABLY CONFIRMED THE ADDITION TO THE EXTENT OF 12.5% OF THE ALLEGED BOGUS PURCHASES. THE CIT(A) WHILE CONFIRMING THE ADDITION TO THE EXTENT OF 12.5% OBSERVED THAT IT WILL COVER THE PROFIT ELEMENT EMBEDDED IN SUCH PURCHASES AND SUBSEQUENT CONSUMPTION AND SALES THEREON. 7. NOTHING WAS PLACED BEFORE US BY LEARNED AR SO AS TO PERSUADE US TO DEVIATE FROM THE FINDINGS RECORDED BY LOWER AUTHO RITIES. ACCORDINGLY, WE DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER PASSED BY LOWER AUTHORITIES. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 18 / 09 /2017 S D/ - ( SANDEEP GOSAIN ) S D/ - ( R.C.SHARMA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 18 / 09 /201 7 KARUNA SR. PS ITA NO. 2094/MUM/2017 M/S. FAGIOLI INDIA PVT. LTD., 3 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//