Nehal Hasmukhrai Gandhi, Mumbai V. The Dy. CIT, Circle-2, Bhavnagar

ITA 2578/AHD/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 0184 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 21-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALIT P JAIN
• Assessee Lawyers: B R POPAT
• Keywords: Bogus purchase; Assessment record

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NO. 2578/AHD/2017 ( / ASSESSMENT YEAR: 2009-10) NEHAL HASMUKHARI GANDHI 103, MANDAVI NAVJIVAN, 121/127, KAZI SAIYAD STREET MASJID BUNDER, MUMBAI- 400003 / VS. DCIT CIRCLE-2, BHAVNAGAR ./ ./ PAN/GIR NO. : ACI PG6 959 L ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : B. R. POPAT, AR / RESPONDENT BY : LALIT P. JAIN, SR. DR / DATE OF HEARING 31/12/2018 !'# / DATE OF PRONOUNCEMENT 25/03/2019 $%/ O R D E R PER MAHAVIR PRASAD - JM: THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAI NST THE ORDER OF LD. CIT(A) APPEAL NO. CIT(A)-6/139/2016-17 DATED 11.10.2017 ARISING FROM ASSESSMENT ORDER DATED 29.1 2.2016 AND FOLLOWING GROUNDS HAVE BEEN TAKEN:- 1. CONFIRMING THE ACTION OF THE AO IN RE-OPENINGTHE CONCLUDE ASSESSMENT FOR THE REASONS AS RECORDED AN D AS SUPPLIED IN DUE COURSE OF TIME THEREAFTER. ITA NO.2578/AHD/2017 [NEHAL HASMUKHRAI GANDHI VS. DCIT] A.Y. 2009-10 - 2 - 2. CONFIRMING THE ACTION OF THE AO IN MAKING AN AG GREGATE ADDITION OF RS. 27,94,300/- TO THE RETURNED INCOME , IN RESPECT OF THE PURCHASES MADE FROM THREE SPECIFIED PARTIES. THE APPELLANT CRAVES LEAVE TO ADD, AMEND, DELETE OR ALTER ONE OR MORE GROUNDS OF APPEAL. 2. SO FAR GROUND NO. 1 IS CONCERNED ASSESSEE DOES N OT WANT TO PLACE THE SAME THEREFORE GROUND NO. 1 IS DISMISSED AS NOT PRESSED. 3. IN THIS CASE INFORMATION WAS RECEIVED FROM THE V AT DEPARTMENT MUMBAI OF BOGUS SUPPLIER AND ONLY PROVID ER. DURING THE COURSE OF ACTION STATEMENT OF THE KEY PERSONS O F SUCH CONCERN WERE RECORDED IN THE LIST THEY WERE CATEGORICALLY A CCEPTED THEY ARE MAINLY PROVIDING BILLS AND NOT SUPPLY ANY MATERIAL. THE LIST OF THE BENEFICIARIES AND SUCH ENTRY PROVIDERS WAS CIRCULAT ED. AFTER GOING THROUGH THE LIST OF BENEFICIARIES IT IS SEEN THAT N AME OF THE ASSESSEE WAS ALSO APPEAR IN THE LIST. THEREFORE, ON THE BAS IS OF INFORMATION ASSESSING OFFICER ISSUED NOTICE TO THE ASSESSEE AND IT IS FOUND THAT ASSESSEE HAS CLAIMED TO MADE THE PURCHASE FROM THRE E BOGUS BULLS TO THE TUNE OF RS. 33,39,507/- WHICH IS ALREADY DEDUCT ED IN THEIR STATEMENT THAT THEY ARE MAINLY BILLERS THEY ARE NOT SUPPLY ANY MATERIAL. FROM THE ASSESSMENT RECORD GROSS PROFIT OF THE ASSESSEE IN THE ASSESSMENT YEAR OF 2007-08 WAS 4.62% IN ASSESSM ENT YEAR 2008- 09 IT WAS 6.16% IN ASSESSMENT YEAR 2009-10 WAS 4.74 % AND BEFORE US ASSESSMENT YEAR IS 2009-10. 4. AT THE OUTSET, LD. AR MADE A REQUEST THAT IF AN ADDITION IS MADE ON ALLEGED BOGUS PURCHASED OF RS. 27,94,300/- AND PROFIT OF 5% IS DETERMINED AT OUR END HE WILL ACCEPT THE SAME AS WE CAN SEE IN THE ASSESSMENT YEAR 2009-10 GROSS PROFIT WAS 4.7 4% IN OUR CONSIDERED OPINION THAT IF INCOME OF THE ASSESSEE I S ESTIMATED @ 5% OF AMOUNT OF RS. 27,94,300/- SUM WOULD MEET THE END OF THE JUSTICE. ITA NO.2578/AHD/2017 [NEHAL HASMUKHRAI GANDHI VS. DCIT] A.Y. 2009-10 - 3 - THEREFORE, APPEAL OF THE ASSESSEES ALLOWED AS PER THE TERMS STATED ABOVE. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . SD/- SD/- (PRADIP KUMAR KEDIA) (MAHAVIR PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 25/03/2019 TANMAY TRUE COPY !' #' / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. $ / ASSESSEE 3. ) *+ , / CONCERNED CIT 4. ,- / CIT (A) 5. 012 33*+, *+#, 56$)$ / DR, ITAT, AHMEDABAD 6. 289 : / GUARD FILE. BY ORDER / $% , ;/5 *+#, 56$)$ < 1.DATE OF DICTATION ON 06.03.2019 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER 06.03.2019 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 25.03.2019 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 25.O3.2019 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 25.03.2019 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 29.03.2019 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER THIS ORDER PRONOUNCED IN OPEN COURT ON 25/03/2 019