KABIR INFOSLUTIONS INDIA P. LTD, MUMBAI V. ITO 15(2)(1), MUMBAI

ITA 2121/MUM/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 0105 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 27-03-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N HEMALATHA
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH SMC, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER ITA NO.2121/M/2017 ASSESSMENT YEAR: 2009-10 M/S. KABIR INFOSOLUTION INDIA PVT. LTD. (FORMERLY KNOWN AS KABIR TECHNOLOGY PVT. LTD.), B-103, BHAICHAND TEXTILES MILLS COMPOUND, ABOVE UNION BANK, L.B.S. MARG, BHANDUP (WEST), MUMBAI-400 078 PAN: AACCK4637N VS. INCOME TAX OFFICER 15(2)(1), MUMBAI (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : NONE REVENUE BY : SMT. N. HEMALATHA, D.R. DATE OF HEARING : 07.08.2017 DATE OF PRONOUNCEMENT : 31.08.2017 O R D E R PER D.T. GARASIA, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 22.12.2016 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT Y EAR 2009-10. 2. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSE E COMPANY IS ENGAGED IN THE BUSINESS OF MANUFACTURE OF NETWORKING PRODUCTS. DURING THE COURSE OF SCRUTINY PROCEEDINGS, ASSESSING OFFICER (HEREINAFTE R REFERRED TO AS THE AO) FOUND FROM THE INFORMATION FURNISHED BY THE ASSESSE E THAT IT HAD OBTAINED BOGUS PURCHASE BILLS TOTAL AMOUNTING OF RS.14,49,91 5/- FROM STHAPNA TRADE IMPEX PVT. LTD., KC ENTERPRISES, M.R. CORPORATION A ND M/S. SAILEELA TRADING PVT. LTD. AMOUNTING TO RS.10,66,141/-, RS.1,21,304, RS.1,34,948/- AND RS.1,27,522/- RESPECTIVELY. THE ASSESSEE SUBMITTED THE COPIES OF TAX INVOICES ITA NO.2121/M/2017 M/S. KABIR INFOSOLUTION INDIA PVT. LTD. (FORMERLY KNOWN AS KABIR TECHNOLOGY PVT. LTD.) 2 AND LEDGER OF THE PARTIES. NO FURTHER DETAILS OR SU PPORTING OF GENUINENESS OF ALLEGED HAWALA PURCHASES WERE SUBMITTED. THE AO OB SERVED THAT THE SALES TAX AUTHORITIES OF MUMBAI HAD CARRIED OUT AN INVESTIGAT ION IN THOSE CASES WHERE THERE WERE DEFAULTS OF VAT SET OFF CREDITS. ON THE BASIS OF INFORMATION RECEIVED FROM THE INVESTIGATION WING OF INCOME TAX DEPARTMENT, MUMBAI, IT WAS FOUND THAT THE ASSESSEE HAD OBTAINED BOGUS PURC HASE BILLS TOTAL AMOUNTING TO RS.14,49,915/.- FROM STHAPNA TRADE IMPEX PVT. LT D., KC ENTERPRISES, M.R. CORPORATION AND M/S. SAILEELA TRADING PVT. LTD. WHI CH WERE STATED TO BE HAWALA OPERATORS. THE INVESTIGATION WING OF MUMBAI HAD PROVIDED A LIST OF HAWALA BILL RACKETEERS WHO WERE INVOLVED IN ISSUING BILLS ON DEMAND OF THE CUSTOMERS. THE INFORMATION ALSO CONTAINED THE LIST OF BENEFICIARIES I.E. WHO HAD APPROACHED THESE DEALERS FOR OBTAINING BOGUS PURCHA SE BILLS TO REDUCE THE INCOME AND CONSEQUENTLY EVADE TAXES. AO, ON GOING T HROUGH THE SUBMISSIONS AND CONTENTIONS OF THE ASSESSEE, CONCLUDED THAT THE ASSESSEE FAILED TO PROVE WITH SUPPORTING DOCUMENTARY EVIDENCES THAT THE MATE RIAL WAS ACTUALLY DELIVERED IN ITS PREMISES AND ALSO FAILED TO FILE E VIDENCES OF DELIVERIES TO ESTABLISH THAT THE MATERIAL WAS CONSUMED FOR BUSINE SS ACTIVITIES. ALSO THE ASSESSEE FAILED TO FURNISH THE CONFIRMATION FROM TH E PARTY THAT IT HAD ACTUALLY SOLD AND DELIVERED MATERIAL TO THE ASSESSEE COMPANY AND HENCE THE SUM IN RESPECT OF INVESTMENT MADE OUT OF UNACCOUNTED MONEY BY THE ASSESSEE FOR PURCHASE OF MATERIALS FROM THE PARTIES OF RS.14,49, 915/- WAS TREATED AS BOGUS PURCHASES AND ADDED TO THE RETURNED INCOME OF THE A SSESSEE. PENALTY PROCEEDINGS U/S. 271(1)(C) OF THE ACT WAS INITIATED FOR CONCEALING AND FURNISHING INACCURATE PARTICULAR OF INCOME. 2. MATTER CARRIED TO THE LD. CIT(A) AND THE LD. CIT(A) HAS DISMISSED THIS APPEAL. 3. NONE APPEARED BEFORE ME AND THE ASSESSEE WAS GIV EN SEVERAL OPPORTUNITIES BUT HE DID NOT REMAIN PRESENT BEFORE ME. THEREFORE, IN ABSENCE OF ANY EVIDENCE, I CONFIRM THE ORDER OF LD. CIT(A). ITA NO.2121/M/2017 M/S. KABIR INFOSOLUTION INDIA PVT. LTD. (FORMERLY KNOWN AS KABIR TECHNOLOGY PVT. LTD.) 3 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31.08.2017. SD/- (D.T. GARASIA) JUDICIAL MEMB ER MUMBAI, DATED: 31.08.2017. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.