NAVIN JAIDHAND DOSHI, MUMBAI V. DCIT-23(3), MUMBAI

ITA 2607/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 8064 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-03-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 15-12-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 11-04-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Bogus purchase; Tangible material
• Section: 133A; 148

Judgement Text

, , , , INCOME-TAX APPELLATE TRIBUNAL -GBENCH MUMBAI , ,, , , ,, , BEFORE S/SH.RAJENDRA,ACCOUNTANT MEMBER AN D AMARJIT SINGH,JUDICIAL MEMBER ./I.T.A./2607/MUM/2016 , / ASSESSMENT YEAR:2006-07 NAVIN JAIDHAND DOSHI D-705, KALP NAGRI B.R. ROAD, MULUND WEST MUMBAI-400 080. PAN:ADDPD 0288 P VS. DCIT-23(3) C-10, PRATYAKSHAKR BHAVAN, BKC, BANDRA EAST MUMBAI-400051. ( /APPELLANT ) ( / RESPONDENT) / REVENUE BY: MS. ANUPAMA SINGLA-DR /ASSESSEE BY: NONE / DATE OF HEARING: 05/12/2016 / DATE OF PRONOUNCEMENT: 10.03.2017 PER RAJENDRA, AM - CHALLENGING THE ORDER,DATED 10.02.2016 OF THE CIT(A )-40,MUMBAI THE ASSESSEE HAS FILED THE PRESENT APPEAL.ASSESSEE,AN INDIVIDUAL,ENGAGED IN TH E BUSINESS OF WHOLESALE SALE AND PURCHASE OF IRON & STEEL,FILED HIS RETURN OF INCOME ON 31.10 .2006, DECLARING TOTAL INCOME AT RS.2.20 LAKHS. INITIALLY, THE RETURN WAS PROCESSED UNDER SE CTION 143 (1) OF THE ACT. LATER ON INFORMATION WAS RECEIVED FROM THE INVESTIGATION WIN G AND THE SURVEY WAS CONDUCTED AT THE BUSINESS PREMISES OF THE ASSESSEE RESULTING IN IMPO UNDING OF SOME INCRIMINATING DOCUMENTS RELATED TO THE BOGUS PURCHASE AND PURCHASE OF IMMOV ABLE PROPERTIES. THE ASSESSING OFFICER (AO) ISSUED A NOTICE UNDER SECTION 148 OF THE ACT A FTER REGARDING THE REASONS. HE COMPLETED THE ASSESSMENT U/S. 143 (3) R.W.S. 147 OF THE ACT, ON 27.03.2014 DETERMINING THE INCOME OF THE ASSESSEE AT RS.6.07 LAKHS. 2. FIRST EFFECTIVE GROUND OF APPEAL IS ABOUT REOPENING OF THE ASSESSMENT UNDER SECTION 147 OF THE ACT AND THE SECOND GROUND DEALS WITH THE ADDITI ON MADE ON ACCOUNT OF ALLEGED BOGUS PURCHASES, AMOUNTING TO RS. 52,734/-. DURING THE RE ASSESSMENT PROCEEDINGS, THE AO OBSERVED THAT AS PER THE INFORMATION RECEIVED FROM THE SALES TAX DEPARTMENT OF GOVERNMENT OF MAHARASHTRA THE ASSESSEE HAD PURCHASED GOODS FROM T HE PARTIES WHO WERE DOING HAWALA BUSINESS AND WERE ISSUING BILLS WITHOUT SUPPLYING G OODS. A SURVEY UNDER SECTION 133A WAS CARRIED OUT IN THE CASE OF THE ASSESSEE AND THE AO HELD THAT THE ASSESSEE HAD PURCHASED GOODS WORTH RS. 4.21 LAKHS FROM THE HAWALA DEALERS, THAT THE TRANSACTION WAS NOT GENUINE. AS A RESULT HE MADE AN ADDITION OF RS. 4, 21, 869/-TO TH E INCOME OF THE ASSESSEE. 2607/M/16(06-07) NAVIN JAIDHAND 2 3. AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE PREF ERRED AN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY(FAA).BEFORE HIM, THE ASSESSEE S TATED REOPENING WAS BAD IN LAW, THAT THE AO HAD NOT DOUBTED THE SALES MADE BY THE ASSESSEE, THAT THE AO DID NOT CONSIDER THE MATERIAL AND DOCUMENTARY EVIDENCES PLACED ON RECORD. AFTER C ONSIDERING THE AVAILABLE MATERIAL, THE F AA HELD THAT THE AO WERE JUSTIFIED IN REOPENING THE ASSESSMENT, THAT THERE WAS TANGIBLE MATERIAL TO ISSUE NOTICE UNDER SECTION 148 OF THE A CT, THAT THE ASSESSEE HAD NOT PRODUCE THE PARTIES FROM WHOM HE HAD ALLEGEDLY PURCHASED THE GO ODS. FINALLY HE HELD THAT ESTIMATION OF 12.5% IS PROFIT EMBEDDED IN IMPUGNED PURCHASES SHOW N FROM THE TAINTED PARTIES WOULD MEET THE ENDS OF JUSTICE. HE DIRECTED THE AO TO ESTIMATE OF IT AT THE RATE OF 12.5% WHICH WORKED OUT TO RS. 52, 734/-.THUS, HE REDUCED THE ADDITION FROM RS. 4.21 LAKHS TO RS. 52,734/-. 4. AS STATED EARLIER,NONE APPEARED BEFORE US.THE DEPAR TMENTAL REPRESENTATIVE (DR) SUPPORTED THE ORDER OF THE AO AND THE FAA. WE FIND THAT NOTHING HAS BEEN BROUGHT ON RECORD TO SHOW THAT FINDINGS GIVEN BY THE F AA WERE FACTUALLY OF LEGALLY INCORRECT. THEREFORE, UPH OLDING HIS ORDER WE DECIDE BOTH THE GROUNDS OF APPEAL AGAINST THE ASSESSEE. A RESULT APPEAL FILED BY THE ASSESSEE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH MARCH, 2017. 10 , 2017 SD/- SD /- ( / AMARJIT SINGH ) ( / RAJENDRA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; /DATED : 10.03.2017. JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. APPELLANT / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR BENCH, ITAT, MUMBAI / , , . . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI.