SAHEBRAO S. KHILARI , MUMBAI V. ACIT 28(3), MUMBAI

ITA 2972/MUM/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8567 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: 2011-2012
• Appeal Filed On: 09-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: HARI S RAHEJA LD
• Keywords: Bogus purchase
• Section: 143(3); 133(6); 148

Judgement Text

1 ITA NO.2972/MUM/2018 SAHEBRAO S. KHILARI ASSESSMENT YEAR-2011-12 IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI , , BEFORE HONBLE SHRI SANDEEP GOSAIN, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.2972/MUM/2018 ( / ASSESSMENT YEAR: 2011-12) MR. SAHEBRAO S. KHILARI 101-104, PRABHAT CENTRE ANNEXE SECTOR-1A, CBD BELAPUR NAVI MUMBAI-400 614. / VS. A CIT - 28 (3) TOWER NO.6 VASHI RAILWAY STN. COMPLEX VASHI, MUMBAI-400 703. ./ ./PAN/GIR NO. AAJPK-7584-J ( /APPELLANT ) : ( ! / RESPONDENT ) '# / APPELLANT BY : SHRI HARI S. RAHEJA- LD.AR ! '# / RESPONDENT BY : CHAUDHARY ARUN KUMAR SINGH- LD. DR % '#& / DATE OF HEARING : 09/07/2019 ''#& / DATE OF PRONOUNCEMENT : 15/07/2019 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER): - 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2011-12 CONTEST THE ORDER OF LD. COMMIS SIONER OF INCOME-TAX (APPEALS)-26, MUMBAI, [IN SHORT REFERRED TO AS CIT (A)], APPEAL NO. CIT(A)- 2 ITA NO.2972/MUM/2018 SAHEBRAO S. KHILARI ASSESSMENT YEAR-2011-12 26/IT/230/2016-17 DATED 20/03/2018 QUA CONFIRMATION OF CERTAIN ADDITIONS ON ACCOUNT OF ALLEGED BOGUS PURCHASES. FOR THIS THE ASSESSEE HAS RAISED GROUND NOS. 1 TO 7. GROUND NO. 8 HAS NOT BEEN PRESS ED BEFORE US WHEREAS GROUND NO. 9 IS GENERAL IN NATURE. 2.1 BRIEFLY STATED, THE ASSESSEE BEING RESIDENT IND IVIDUAL ENGAGED AS CIVIL CONTRACTOR WAS ASSESSED U/S. 143(3) R.W.S.147 ON 02/11/2016 W HEREIN THE INCOME OF THE ASSESSEE WAS DETERMINED AT RS.377.12 LACS AFTER CERTAIN ADDITIONS AS AGAINST RETURNED INCOME OF RS.57.49 LA CS FILED BY THE ASSESSEE ON 30/09/2011. THE ORIGINAL ASSESSMENT WAS FRAMED U/S. 143(3) ON 31/12/2013 DETERMINING TOTAL INCOME AT RS.372.08 LACS. 2.2 PURSUANT TO RECEIPT OF CERTAIN INFORMATION FROM DGIT (INVESTIGATION) / SALES TAX AUTHORITIES, IT TRANSPIRED THAT THE ASSES SEE STOOD BENEFICIARY OF HAWALA PURCHASE BILLS AGGREGATING TO RS.40.28 LACS STATED TO BE PROCURED FROM 3 SUSPICIOUS DEALERS, THE DETAILS OF WHICH HAV E ALREADY BEEN EXTRACTED IN PARA 4 OF THE QUANTUM ASSESSMENT ORDER. ACCORDIN GLY, THE CASE WAS RE- OPENED BY ISSUE OF NOTICE U/S. 148 ON 07/01/2016 WH ICH WAS FOLLOWED BY STATUTORY NOTICES U/S. 143(2) AND 142(1). 2.3 IN DEFENSE OF PURCHASES TRANSACTIONS, THE ASSES SEE SUBMITTED LEDGER EXTRACTS, COPIES OF INVOICES ETC. HOWEVER, SUMMONS ISSUED U/S. 133(6) TO ALL THE PARTIES REMAINED UN-RESPONDED. THE ASSESSEE ALS O FAILED TO PRODUCE THE PARTIES. THE ASSESSEE ALSO COULD NOT SUBMIT TRA NSPORT RECEIPTS / LORRY RECEIPTS / OCTROI RECEIPTS IN SUPPORT OF DELIVERY O F MATERIAL. FINALLY, NOT CONVINCED WITH DOCUMENTARY EVIDENCES, LD. ASSESSING OFFICER ESTIMATED ADDITIONS OF 12.5% AGAINST THESE PURCHASES. THE SAM E RESULTED INTO AN 3 ITA NO.2972/MUM/2018 SAHEBRAO S. KHILARI ASSESSMENT YEAR-2011-12 ADDITION OF RS.5.03 LACS IN THE HANDS OF THE ASSESS EE. THE STAND OF LD. AO, UPON CONFIRMATION BY FIRST APPELLATE AUTHORITY, IS UNDER CHALLENGE BEFORE US. 3. THE LD. AUTHORIZED REPRESENTATIVE FOR ASSESSEE [ AR], PLACED RELIANCE ON THE DECISION OF THIS TRIBUNAL RENDERED IN OTHER CASES OF ASSOCIATED CONCERNS OF THE ASSESSEE, TO SUBMIT THAT ESTIMATION S HAVE BEEN RESTRICTED TO 6% AND THEREFORE, THE SAME VIEW MAY BE TAKEN IN THE MATTER. THE LD. DR SUBMITTED THAT NO INTERFERENCE WOULD BE REQUIRED IN THE IMPUGNED ORDER. 4. UPON PERUSAL OF TRIBUNAL ORDER IN ITA NO.6354/MU M/2017 DATED 31/12/2018 FOR AY 2010-11 AND ITA NO.279 & 5950/MUM /2018 DATED 04/04/2019 FOR AY 2011-12 IN THE CASE OF KHILARI INFRASTRUCTURE PVT. LTD., WE FIND THAT THE IMPUGNED ADDITIONS HAVE BEEN ESTIM ATED AT 6% OF ALLEGED BOGUS PURCHASES. THEREFORE, WITHOUT DELVING MUCH DEEPER INTO THE ISS UE AND FOLLOWING THE STAND OF TRIBUNAL IN THE CASE OF ASSOCIATED CONCERNS OF THE ASSESSEE, WE ACCEPT THE ESTIMATED ADDITIONS OF 6% OF ALLEGED BOGUS PURCHASES WHICH COMES TO RS.2,41,726/-. THE ORDERS OF LOWER A UTHORITIES STAND MODIFIED TO THAT EXTENT. THE GROUNDS OF APPEA L STAND PARTLY ALLOWED. 5. THE APPEAL STANDS PARTLY ALLOWED IN TERMS OF OUR ABOVE ORDER. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH JULY, 2019. SD/- SD/- (SANDEEP GOSAIN) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 15/07/2019 SR.PS:-JAISY VARGHESE 4 ITA NO.2972/MUM/2018 SAHEBRAO S. KHILARI ASSESSMENT YEAR-2011-12 / 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.