AMULAKH HATICHAND VORA, MUMBAI V. DCIT RG 13(1), MUMBAI

ITA 2773/MUM/2017

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 8959 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 18-04-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SATISH CHANDRA RAJORE
• Assessee Lawyers: NEHA PARANJPE A RS
• Keywords: Reopening of assessment; Bogus purchase
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES A, MUMBAI BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO. A.Y. APPELLANT RESPONDENT 2773/MUM/17 2006-07 SHRI AMULAKH HATICHAND VORA, PROP: MANHAR TRADING CORPORATION, 16/17, J.K. CHAMBERS, 77/83, NAGDEVI STREET, MUMBAI [PAN: AAAPV 5346 C] ASST. COMMISSIONER OF INCOME TAX-13(1), MUMBAI 2774/MUM/17 2007-08 2775/MUM/17 2009-10 APPELLANT BY : SHRI K. GOPAL & MISS NEHA PARANJPE, ARS RESPONDENT BY : SHRI S A TISHCHANDRA RAJORE , DR DATE OF HEARING : 13 - 1 2 - 201 8 DATE OF PRONOUNCEMENT : 19 - 1 2 - 201 8 O R D E R PER RAJESH KUMAR, ACCOUNTANT MEMBER: THESE APPEALS FILED BY THE ASSESSEE ARE DIRECTED AG AINST THE ORDERS OF THE COMMISSIONER OF INCOME TAX(APPEALS)-2 8, MUMBAI, DATED 03-02-2017. SINCE THE ISSUE IN ALL THESE APPE ALS IS COMMON, WE HAVE HEARD ALL THESE FILES TOGETHER AND DECIDED BY THIS COMMON ORDER. THE ONLY ISSUE INVOLVED IN ALL THESE APPEALS FILED BY ASSESSEE IS AGAINST THE CONFIRMATION OF AD DITION BY CIT(A) ITA NOS. 2773, 2774 & 2775/MUM/2017 2 AS MADE BY THE ASSESSING OFFICER (AO) ON ACCOUNT OF BOGUS PURCHASES. 2. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SUBM ITTED TO THE BENCH THAT THE ISSUE IN THIS APPEAL IS SQUARELY COV ERED BY THE DECISION OF THE CO-ORDINATE BENCH OF THE TRIBUNAL I N ASSESSEES OWN CASE IN ITA NO. 520/MUM/2015, AY. 2010-11, DT. 04-09-2017, WHEREIN THE IDENTICAL ISSUE HAS BEEN DE CIDED BY THE CO-ORDINATE BENCH, DIRECTING THE AO TO MAKE ADDITIO N @ 12.5% OF THE BOGUS PURCHASES. THEREFORE, LD. AR SUBMITTED THAT SAME SHOULD BE ADOPTED IN THE PRESENT CASE ALSO. 3. LD.DR, ON THE OTHER HAND APPEARED TO BE FAIRLY A GREED TO THE CONTENTIONS OF THE AR THAT SIMILAR ISSUE WAS DE CIDED BY THE TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO. 520/MUM /2015, AY. 2010-11, DT. 04-09-2017. 4. AFTER HEARING BOTH THE SIDES AND PERUSING THE MA TERIAL ON RECORD, WE FIND THAT IDENTICAL ISSUE HAS BEEN DECID ED BY THE CO- ORDINATE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CA SE IN THE SUBSEQUENT YEAR I.E., AY. 2010-11, DIRECTING THE AO TO ASSESS THE INCOME BY APPLYING GROSS PROFIT RATE OF 12.5% TO TH E BOGUS PURCHASES, WHEREIN IT WAS HELD AS UNDER: ITA NOS. 2773, 2774 & 2775/MUM/2017 3 ..TAKING INTO ACCOUNT THE FACTS AND CIRCUMSTA NCES OF THE INSTANT CASE, WE FOLLOW THE RATIO LAID DOWN IN THE ABOVE DECISIONS AND SET ASIDE THE ORDER OF THE LD. CIT(A) AND DIRECT TH E AO TO ESTIMATE PROFIT @ 12.5% ON THE PURCHASES OF RS. 2,15,89,916/-. THU S, THE 1 ST GROUND OF APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. 4.1. RESPECTFULLY FOLLOWING THE DECISION OF THE CO- ORDINATE BENCH OF THE TRIBUNAL, WE SET ASIDE THE ORDER OF CI T(A) AND DIRECT THE AO TO MAKE ADDITION AND ESTIMATE THE INCOME BY APPLYING @ 12.5% TO THE BOGUS PURCHASES. GROUNDS ARE PARTLY A LLOWED. 5. THE ISSUE OF RE-OPENING OF ASSESSMENT U/S 147 R. W.S. 148 IS NOT PRESSED AT THE TIME OF HEARING AND THEREFORE DI SMISSED AS NOT PRESSED. 6. IN THE RESULT, ALL THE APPEALS OF ASSESSEE ARE P ARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH DAY OF DECEMBER, 2018 SD/- SD/- ( MAHAVIR SINGH ) (RAJESH KUMAR) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /MUMBAI; /DATED : 19 TH DECEMBER, 2018 TNMM ITA NOS. 2773, 2774 & 2775/MUM/2017 4 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT, MUMBAI 4. / CIT(A), MUMBAI 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE / BY ORDER, //TRUE COPY// / (DY./ASST. REGISTRAR) , / ITAT, MUMBAI