INCOMET TAX OFFICER-42(1)(4), , MUMBAI V. RAVINDRA G CHITALIA, MUMBAI

ITA 2953/MUM/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 8155 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 19-03-2024
• Assessment Year: 2011-2012
• Appeal Filed On: 22-08-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DEBIZ BHUSAL
• Keywords: Bogus

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC‘ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA No.2953/Mum/2023 (Assessment Year :2011-12) Income Tax Officer- 42(1)(4) Mumbai Vs. Ravindra G Chitalia A/604, Saileela Above Vijaya Bank Anand Nagar Dahisar (E) Mumbai- 400 068 PAN/GIR No.AAEPC4939Q (Appellant) .. (Respondent) Assessee by Shri Debiz Bhusal Revenue by Shri R.R. Makwana Date of Hearing 20/03/2024 Date of Pronouncement 20/03/2024 आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the department against order dated 16/05/2023 passed by NFAC, Delhi for the quantum of assessment passed u/s.143(3) r.w.s. 147 for the A.Y.2011-12. 2. In the grounds of appeal, the department has challenged the disallowance of 5% made by the ld. CIT(A) on bogus purchases as against disallowance @12.5% made by the ld. AO. ITA No. 2953/Mum/2023 Ravindra G Chitalia 2 3. The brief facts are that assessee is a trader of various products of Iron and Steel and is regularly assessed to tax. He has filed its return of income on 29/09/2011 declaring total income of Rs.2,55,878/-. Subsequently, based on the information received from Sales Tax department that assessee was also one of the beneficiaries of some bogus bills to various parties for purchases aggregating to Rs.1,15,76,084/- The ld. AO accordingly, made an addition by applying GP rate of 15% of total amount of Rs.1,15,76,084/- on alleged bogus purchases. The ld. CIT (A) after relying upon the decision of ITAT in assessee’s own case in ITA No.3468/Mum/2018 dated 06/02/2019 for A.Y.2009-10 applied GP rate of 5%. 4. Once the Tribunal in assessee’s own case on similar purchases has applied GP rate of 5%, then we do not find any infirmity in the order of the ld. CIT(A) in restricting the addition to the extent of 5%. Accordingly grounds raised by revenue is dismissed. 5. In the result, appeal of the Revenue is dismissed. Order pronounced on 20 th March, 2024. Sd/- (S. RIFAUR RAHMAN) Sd/- (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 20/03/2024 KARUNA, sr.ps ITA No. 2953/Mum/2023 Ravindra G Chitalia 3 Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Mumbai 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy//