M/S.LAUNCH PAD, MUMBAI V. INCOME TAX OFFICER 27(2)(3), MUMBAI

ITA 2606/MUM/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0220 (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: 2009-2010
• Appeal Filed On: 26-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR YADAVLD
• Keywords: Bogus purchase; Depreciation; Tangible material; Reassessment proceedings
• Section: 133(6); 147; 144

Judgement Text

ITA NO. 2606/MUM/2018 LAUNCH PAD ASSESSMENT YEAR-2009-10 - 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.2606/MUM/2018 ( / ASSESSMENT YEAR: 2009-10) LAUNCH PAD 15A, GHATKOPAR INDUSTRIAL ESTATE LBS MARG, GHATKOPAR(WEST) MUMBAI-400 086 / VS. INCOME TAX OFFICER 27(2)(3 ) R.NO.417, 4 TH FLOOR TOWER-6, VASHI NAVI MUMBAI 400 703 ./PAN : AACFL-4789-M ( /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] 2009-10 CONTEST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS) 25, NAVI MUMBAI [CIT(A)], APPEAL NO.CIT(A)-25/IT-433/15-16 DATED ITA NO. 2606/MUM/2018 LAUNCH PAD ASSESSMENT YEAR-2009-10 2 02/02/2018 ON LEGAL GROUNDS AS WELL AS ON MERITS. N ONE HAS APPEARED FOR ASSESSEE DESPITE NOTICE. THE HEARING NOTICE SEN T THROUGH REGISTERED POST AT THE ADDRESS MENTIONED IN FORM NO. 36 HAS RE TURNED BACK UNDELIVERED. THE ASSESSEE HAS NOT INTIMATED ANY CHA NGE IN ADDRESS. FINDING NO REASON TO KEEP THE APPEAL PENDING, WE DI SPOSE-OFF THE SAME ON THE BASIS OF MATERIAL AVAILABLE ON RECORD AND AF TER 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 ON BEST JUDGMENT BASIS U/S 144 READ WITH SECTION 147 OF THE INCOME TAX ON 09/03/2015 BY LD. INCOME TAX O FFICER-27(2)(3) [AO] WHEREIN THE INCOME OF THE ASSESSEE HAS BEEN AS SESSED AT RS.30.86 LACS AFTER CERTAIN ADDITIONS AS AGAINST RE TURNED INCOME OF RS.1.94 LACS FILED BY THE ASSESSEE ON 19/09/2009 WH ICH WAS PROCESSED U/S 143(1). 2.2 PURSUANT TO RECEIPT OF CERTAIN INFORMATION FROM INVESTIGATION WING OF THE DEPARTMENT REGARDING DEALERS PROCURING ACCOMMOD ATION PURCHASE BILLS FROM HAWALA DEALERS, IT TRANSPIRED THAT THE ASSESSEE OBTAINED ACCOMMODATION BILLS OF RS.16.01 LACS FROM 5 SUCH SU PPLIERS, THE DETAILS OF WHICH HAVE ALREADY BEEN EXTRACTED AT PARA 4.1 OF THE QUANTUM ASSESSMENT ORDER. ALTHOUGH THE ASSESSEE DEFENDED TH E PURCHASES, NOTICES SENT U/S 133(6) TO VERIFY THE TRANSACTIONS ELICITED NO RESPONSE. THE ASSESSEE FAILED TO PRODUCE ANY OF THE SUPPLIERS , BROKERS OR TRANSPORTERS. THE FACTUAL MATRIX LED THE LD.AO TO T REAT THESE PURCHASES AS BOGUS PURCHASES AND ACCORDINGLY, THE SAME WERE ADDED TO THE INCOME OF THE ASSESSEE. ITA NO. 2606/MUM/2018 LAUNCH PAD ASSESSMENT YEAR-2009-10 3 2.3 FURTHER, THE ASSESSEE REMAINED NON-COMPLIANT TO FILE VARIOUS OTHER DETAILS AS CALLED FOR BY LD. AO DURING ASSESSMENT P ROCEEDINGS, WHICH RESULTED INTO DISALLOWANCE OF DEPRECIATION OF RS.30 ,492/-, DISALLOWANCE OF PROVISIONS OF RS.1,64,520/- AND AN ADHOC DISALLOWANCE @50% AMOUNTING TO RS,10,95,138/- AGAINST VARIOUS EXPENDI TURE CLAIMED BY THE ASSESSEE. FINALLY, THE INCOME WAS ASSESSED AT RS.30 .86 LACS. 3. AGGRIEVED, THE ASSESSEE CONTESTED THE SAME ON LE GAL GROUNDS AS WELL AS ON MERITS, HOWEVER, WITHOUT ANY SUCCESS, BE FORE LD. CIT(A) VIDE IMPUGNED ORDER DATED 02/02/2018 WHEREIN LD. FIRST A PPELLATE AUTHORITY UPHELD THE REASSESSMENT PROCEEDINGS BY NOTICING THA T LD. AO WAS CLINCHED WITH TANGIBLE MATERIAL WHICH SUGGESTED ESC APEMENT OF INCOME IN THE HANDS OF THE ASSESSEE. ON MERITS, THE ASSESS EE AGAIN FAILED TO ADDUCE ANY EVIDENCE TO SUPPORT THE EXPENDITURE CLAI MED WHICH RESULTED INTO CONFIRMATION OF STAND OF LD. AO BY FIRST APPEL LATE AUTHORITY. AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US WHEREIN THE ASSESSEE HAS AGAIN REMAINED NEGLIGENT TO PURSUE THE APPELLATE PROCEEDINGS. 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. RESULTANTLY, WE HAVE NO OTH ER OPTION BUT TO CONFIRM THE FINDINGS OF LD. FIRST APPELLATE AUTHORI TY. WE ORDER SO. 5. THE APPEAL STANDS DISMISSED. ITA NO. 2606/MUM/2018 LAUNCH PAD ASSESSMENT YEAR-2009-10 4 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 ! / 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.