NITIN AVANTILAL DOSHI, MUMBAI V. ITO 17(1)(4), MUMBAI

ITA 2619/MUM/2013

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9189 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2017
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 02-01-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 05-04-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUMAN KUMAR LD
• Assessee Lawyers: VIRAL DOSHI LD
• Keywords: Bogus purchase
• Section: 143(3); 133(6); 131

Judgement Text

ITA NO.2619/M/2013 NITIN AVANTILAL DOSHI ASSESSMENT YEAR 2009-10 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI , , BEFORE SHRI MAHAVIR SINGH, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO. 2619/MUM/2013 ( / ASSESSMENT YEAR: 2009-10) NITIN AVANTILAL DOSHI GALA NO.3 TO 5 MAGAZINE STREET DARUKHANA, NEAR REY ROAD RAILWAY STATION MUMBAI 400 010 / VS. INCOME TAX OFFICER 17(1)(4) PIRAMAL CHAMBERS LALBAUG MUMBAI ./ ./PAN/GIR NO. AABPD-1214-A ( ! /APPELLANT ) : ( '#! / RESPONDENT ) A SSESSEE BY : VIRAL DOSHI ,LD.AR RE VENUE BY : SUMAN KUMAR, LD. DR / DATE OF HEARING : 07/09/2017 / DATE OF PRONOUNCEMENT : 04 /10/2017 ITA NO.2619/M/2013 NITIN AVANTILAL DOSHI ASSESSMENT YEAR 2009-10 2 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE CAPTIONED APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2009-10 ASSAILS THE ORDER OF THE LD. COMMISSIONER O F INCOME-TAX (APPEALS)-29 [CIT(A)], MUMBAI DATED 13/02/2013 QUA CONFIRMATION OF CERTAIN ADDITIONS ON ACCOUNT OF BOGUS PURCHASES. 2.1 FACTS LEADING TO THE SAME ARE THAT THE ASSESSEE BEING RESIDENT INDIVIDUAL DEALING IN METAL UNDER PROPRIETORSHIP CONCERN NAMELY KUSHAL METAL & STEEL IND. WAS ASSESSED FOR IMPUGNED AY U/S 143(3) ON 26/12/2011 AT RS.2,26,77,880/- AFTER CERTAIN ADDITI ON OF BOGUS PURCHASES FOR RS.2,11,39,662/- AS AGAINST RETURNED INCOME OF RS.15,38,540/- FILED BY THE ASSESSEE ON 30/09/2009. THE ASSESSEE REFLECT ED GP / NP RATE OF 11.73% & 1.12% RESPECTIVELY AGAINST TURNOVER OF RS. 13.90 CRORES. 2.2 THE ASSESSEE MADE PURCHASES OF RS.2,11,39,662/- FROM FOUR PARTIES. HOWEVER, NOTICES SENT U/S 133(6) TO CONFIR M THE PURCHASES TRANSACTIONS WERE RETURNED BACK UN-SERVED BY THE POSTAL AUTHORITIES. THE LD. AO ISSUED SUMMONS U/S 131 BUT THE ASSESSEE FAIL ED TO PRODUCE ANY PARTY FOR CONFIRMATION OF THE TRANSACTIONS, WHICH L ED THE LD. AO TO TREAT THE SAME AS BOGUS PURCHASES AND CONSEQUENTLY, THE SAME WAS ADDED TO THE INCOME OF THE ASSESSEE. 3. AGGRIEVED, THE ASSESSEE CONTESTED THE SAME WITHO UT ANY SUCCESS BEFORE LD. CIT(A) VIE IMPUGNED ORDER DATED 13/02/20 13 AND CONTENDED THAT THE PAYMENTS WERE THROUGH BANKING CHANNELS AND THE ASSESSEE WAS IN POSSESSION OF PRIMARY PURCHASES DOCUMENTS AN D COMPLETE ITA NO.2619/M/2013 NITIN AVANTILAL DOSHI ASSESSMENT YEAR 2009-10 3 QUANTITATIVE DETAILS WERE AVAILABLE ON RECORD. HOWE VER, LD. CIT(A) AFTER APPRECIATING THE REMAND REPORT AND ASSESSEES SUBMISSIONS CONFIRMED THE ADDITIONS. AGGRIEVED, THE ASSESSEE IS IN FURTHE R APPEAL BEFORE US. 4. THE LD. COUNSEL FOR ASSESSEE [AR], AT THE OUTSET , DREW OUR ATTENTION TO THE FACT THAT THE ASSESSEE SUFFERED SI MILAR ADDITION IN AY 2010-11 AND MATTER WAS CONTESTED BEFORE THIS TRIBUN AL VIDE ITA NO. 4739/MUM/2014 ORDER DATED 23/08/2017 WHERE THE ADDI TION HAS BEEN RESTRICTED TO 12.5%. LD. DR FAIRLY CONCEDED THE SAM E. A COPY OF THE ORDER HAS BEEN PLACED BEFORE US. 5. AFTER PERUSING THE CITED ORDER OF THE TRIBUNAL, WE CONCUR WITH THE STAND OF LD. AR SINCE THE ADDITION AGAINST SIMILAR PURCHASES HAVE BEEN ESTIMATED @12.5% IN AY 2010-11. THEREFORE, THERE BE ING NO CHANGE IN FACTS OR CIRCUMSTANCES EXCEPT FOR MINOR VARIATIONS ETC., FOLLOWING THE SAME, WE RESTRICT THE IMPUGNED ADDITIONS TO 12.5% O F ALLEGED BOGUS PURCHASES OF RS.2,11,39,662/- 6. RESULTANTLY, THE ASSESSEES APPEAL STANDS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 04 TH OCTOBER, 2017. SD/- SD/- (MAHAVIR SINGH) (M ANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 04 . 10.2017 SR.PS:- THIRUMALESH ITA NO.2619/M/2013 NITIN AVANTILAL DOSHI ASSESSMENT YEAR 2009-10 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