SHRI MOHAMMED MOBIN M. H. CHOUDHARY, MUMBAI V. ITO 26 (2)(3), MUMBAI

ITA 2869/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0003 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 06-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: AJAY PRATAP SINGH
• Keywords: Bogus purchase
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI , ! BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 2869 / / 2019 (%. .2010-11 ) ITA NO. 2869/MUM/2019 (A.Y.2010-11) SHRI MOHAMMED MOBIN M.H.CHOUDHARY, 2 ND LANE, TAR GALLI, JARI MARI, ANDHERI KURLA ROAD,SAKINAKA, MUMBAI -400 072 PAN:AIGPC7854K / VS. : / APPELLANT THE INCOME TAX OFFICER, WARD 26(2)(3), PRATYAKSHA KAR BHAVAN, BKC, BANDRA (E),MUMBAI 400 051 : / RESPONDENT ASSESSEE BY : NONE REVENUE BY : SHRI AJAY PRATAP SINGH / DATE OF HEARING : 12/10/2020 / DATE OF PRONOUNCEMENT : 17/12/2020 / ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-38, MUMBAI ( I N SHORT THE CIT(A)) DATED 31/12/2018 FOR THE ASSESSMENT YEAR 2010-11. 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM RECORDS ARE : THE ASSESSEE IS A TRADER OF MS SCRAP STEEL AND WIRE. ON THE BASIS OF INFORMATION RECEIVED FROM SALES TAX DEPARTMENT, GOVERNMENT OF MAHARASHTRA BY THE DIRECTOR GENERAL OF 2 ITA NO. 2869/MUM/2019 (A.Y.2010-11) INCOME TAX (INVESTIGATION), MUMBAI THE ASSESSMENT IN THE CASE OF ASSESSEE FOR 2010-11 WAS REOPENED ON THE GROUND THAT ASSESSEE HA D OBTAINED BOGUS PURCHASE BILLS AMOUNTING TO RS.1,03,71,766/- FROM V ARIOUS HAWALA OPERATORS DURING THE PERIOD RELEVANT TO THE ASSESSMENT YEAR U NDER APPEAL. THE ASSESSING OFFICER MADE ADDITION OF RS.25,92,941/- I.E 25% OF TOTAL NON-GENUINE PURCHASES. AGGRIEVED BY THE ASSESSMENT ORDER DAT ED 12/02/2016 PASSED UNDER SECTION 143(3) R.W.S 147 OF THE ACT, THE AS SESSEE FILED APPEAL BEFORE CIT(A). THE CIT(A) DISMISSED THE APPEAL OF ASSES SEE AND UPHELD THE ASSESSMENT ORDER. HENCE, PRESENT APPEAL BY THE ASS ESSEE. 3. SHRI AJAY PRATAP SINGH, REPRESENTING THE DEPARTM ENT VEHEMENTLY DEFENDED THE IMPUGNED ORDER. THE LD.DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT ASSESSEE HAD INDULGED IN OBTAINING B OGUS PURCHASE BILLS FROM HAWALA OPERATORS. THE ASSESSING OFFICER AND CIT(A) WERE FAIR AND JUSTIFIED IN MAKING ADDITION ON ACCOUNT OF BOGUS PURCHASES TO 2 5% OF SUCH TOTAL PURCHASES. 4. SUBMISSIONS MADE BY LD.DEPARTMENTAL REPRESENTATI VE HEARD, ORDERS OF AUTHORITIES BELOW EXAMINED. THE ASSESSEE IN THE PR ESENT APPEAL HAD ASSAILED THE FINDING OF CIT(A) IN CONFIRMING THE ADDITION MA DE BY ASSESSING OFFICER BY ESTIMATING SUPPRESSED PROFIT @ 25% ON ALLEGED BOGUS PURCHASES. TAKING INTO CONSIDERATION THE NATURE OF ASSESSEES BUSINESS, I AM OF THE CONSIDERED VIEW THAT ESTIMATION OF 25% PROFITS ON BOGUS PURCHASES I S ON THE HIGHER SIDE. THE ASSESSEE HAS NOT DISCLOSED G.P ON REGULAR PURCHA SES, EITHER BEFORE THE ASSESSING OFFICER OR THE CIT(A). THEREFORE, I DEEM IT APPROPRIATE TO RESTORE THIS ISSUE BACK TO THE FILE OF ASSESSING OFFICER TO DECIDE THE SAME AFRESH IN LINE WITH THE DECISION OF HON'BLE BOMBAY HIGH COURT IN THE CASE OF PCIT VS. 3 ITA NO. 2869/MUM/2019 (A.Y.2010-11) MOHAMED HAJI ADAM IN INCOME TAX APPEAL NO.1004 OF 2 016 DECIDED ON 11/02/2019. 5. CONSEQUENTLY, THE IMPUGNED ORDER IS SET-ASIDE AN D THE APPEAL OF ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE IN THE TERMS AFORESAID. ORDER PRONOUNCED IN THE OPEN COURT ON THURSDAY THE 17 TH DAY OF DECEMBER, 2020. SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, (%/ DATED: 17/12/2020 VM , SR. PS(O/S) COPY OF THE ORDER FORWARDED TO : 1. ) / THE APPELLANT , 2. *+ / THE RESPONDENT. 3. ,+ ( )/ THE CIT(A)- 4. ,+ CIT 5. -.*+% , . . . , / DR, ITAT, MUMBAI 6. ./012 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI