M/S.FAB COT PLUS, MUMBAI V. INCOME TAX OFFICER -1(1), KALYAN

ITA 2602/MUM/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0219 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-12-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 26-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Bogus purchase
• Section: 143(3); 147; 148

Judgement Text

ITA NO. 2602/MUM/2018 FAB COT PLUS ASSESSMENT YEAR-2011-12 - IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.2602/MUM/2018 ( / ASSESSMENT YEAR: 2011-12) FAB COT PLUS G-5, SHREE RAJLAXMI, HITECH PARK MUMBAI NASHIK BY-PASS SONALE, BHIWANDI-421 302 / VS. INCOME TAX OFFICER 1(1) KALYAN, MOHAN PLAZA 1 ST FLOOR, WAYLE NAGAR KHADAKPADA, KALYAN 421 302 ./PAN : AABFF-2969-C ( /APPELLANT ) : ( ! / RESPONDENT ) A SSESSEE BY : NONE RE VENUE BY : RAJESH KUMAR YADAV, LD. DR / DATE OF HEARING : 26/11/2018 / DATE OF PRONOUNCEMENT : 05/12/2018 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2011-12 CONTEST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS) 2, THANE [CIT(A)], APPEAL NO.167/15-16 DATED 27/02/2018 QUA ITA NO. 2602/MUM/2018 FAB COT PLUS ASSESSMENT YEAR-2011-12 2 CONFIRMATION OF CERTAIN ADDITIONS ON ACCOUNT OF ALLEGED BOGUS PURCHASES. NONE HAS APPEARED FOR ASSESSEE DESPITE NOTICE AND N O ADJOURNMENT APPLICATION IS ON RECORD. FINDING NO REASON TO KEEP THE APPEAL PENDING, WE DISPOSE-OFF THE SAME ON THE BASIS OF MATERIAL AV AILABLE ON RECORD AND AFTER HEARING LD. DEPARTMENTAL REPRESENTATIVE [DR] WHO HAS JUSTIFIED THE STAND OF LOWER AUTHORITIES. 2.1 FACTS LEADING TO THE SAME ARE THAT THE ASSESSEE BEING RESIDENT FIRM WAS RE-ASSESSED U/S 143(3) READ WITH SECTION 147 OF THE INCOME TAX ON 10/03/2015 BY LD. INCOME TAX OFFICER-1(1), KALYAN [ AO] WHEREIN THE INCOME OF THE ASSESSEE HAS BEEN ASSESSED AT RS.8.75 LACS AFTER CERTAIN ADDITIONS OF RS.1.64 LACS ON ACCOUNT OF ALLEGED BOGUS PURCHASES AS AGAINST RETURNED INCOME OF RS.7.11 LACS E-FILED BY THE ASSESSEE ON 17/09/2011 WHICH WAS PROCESSED U/S 143(1). 2.2 PURSUANT TO RECEIPT OF CERTAIN INFORMATION FROM SALES TAX DEPARTMENT, MAHARASHTRA REGARDING DEALERS SUPPLYING BOGUS PURCHASE BILLS, IT TRANSPIRED THAT THE ASSESSEE STOOD BENEFICIARY O F SUCH BOGUS BILLS OF RS.1.64 LACS FROM 2 SUCH SUPPLIERS, THE DETAILS OF WHICH HAVE ALREADY BEEN EXTRACTED AT PARA 3 OF THE QUANTUM ASSESSMENT ORDER. CONSEQUENTLY, NOTICE U/S 148 DATED 05/04/2013 WAS I SSUED TO THE ASSESSEE WHICH WAS FOLLOWED BY STATUTORY NOTICES U/ S 143(2) & 142(1). ALTHOUGH THE ASSESSEE DEFENDED THE PURCHASES, IT FA ILED TO SUBMIT REQUISITE DETAILS TO SUBSTANTIATE THE PURCHASES. TH E INDEPENDENT INVESTIGATIONS CARRIED OUT BY THE INSPECTOR ESTABLI SHED THAT THE PURCHASES WERE NOT GENUINE. THE ASSESSEE FAILED TO PRODUCE AN Y OF THE SUPPLIERS TO CONFIRM THE TRANSACTION WHICH LED THE LD.AO TO TREA T THESE PURCHASES AS ITA NO. 2602/MUM/2018 FAB COT PLUS ASSESSMENT YEAR-2011-12 3 BOGUS PURCHASES AND ACCORDINGLY, THE SAME WERE ADDED TO THE INCOME OF THE ASSESSEE. 3. AGGRIEVED, THE ASSESSEE CONTESTED THE SAME WITHO UT ANY SUCCESS BEFORE LD. CIT(A) VIDE IMPUGNED ORDER DATED 27/02/2018 WHEREIN THE ASSESSEE AGAIN FAILED TO SUBSTANTIATE THE PURCHASES MADE BY HIM. FINALLY, CONSIDERING THE GROSS PROFIT RATE REFLECTED BY THE ASSESSEE IN THE IMPUGNED AY AS WELL AS IN EARLIER TWO AYS, THE FIRST APPELLATE AUTHORITY CONFIRMED THE STAND OF LD. AO. AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 4. UPON CAREFUL CONSIDERATION OF FACTUAL MATRIX, WE FIND NO REASON TO DEVIATE FROM THE STAND OF LOWER AUTHORITIES SINCE T HE COMPLETE ONUS TO SUBSTANTIATE THE TRANSACTIONS WAS ON ASSESSEE AND T HE SAME HAS REMAINED UN-DISCHARGED. NOTHING ON RECORD CONTROVER TS OR REBUTS THE FINDINGS OF LD. FIRST APPELLATE AUTHORITY. RESULTAN TLY, WE HAVE NO OTHER OPTION BUT TO CONFIRM THE FINDINGS OF LD. FIRST APP ELLATE AUTHORITY. WE ORDER SO. 5. THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 05 TH DECEMBER, 2018. SD/- SD/- (MAHAVIR SINGH) (M ANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 05/12/2018 SR.PS:-JAISY VARGHESE ITA NO. 2602/MUM/2018 FAB COT PLUS ASSESSMENT YEAR-2011-12 4 ! / 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.