ASHOK VRAJLAL GOLAWALA, MUMBAI V. ITO 25(2)(1), MUMBAI

ITA 3011/MUM/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0134 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 26-04-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V JANARDHANAN
• Assessee Lawyers: DILIP J DIWAN
• Keywords: Bogus purchase

Judgement Text

, SMC , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES SMC, MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA NO.3011/MUM/2017 : ASST.YEAR 2009-2010 SHRI ASHOK VRAJLAL GOLWALA 11 KAMAL KUNJ, 4 TH NORTH ROAD JUHU SCHEME, VILE PARLE (WEST) MUMBAI 400 056. PAN : AADPG7132L. / VS. THE INCOME TAX OFFICER WARD 25(2)(1) MUMBAI. ( / APPELLANT) ( / RESPONDENT) /APPELLANT BY : SHRI DILIP J.DIWAN /RESPONDENT BY : SHRI V.JANARDHANAN / DATE OF HEARING : 04.07.2017 / DATE OF PRONOUNCEMENT : 05.07.2017 / O R D E R THIS IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST ORDER OF LEARNED CIT(A) DATED 21.02.2017 AND PERTAINS TO ASSESSMENT YEAR 2009-2010. 2. THE ISSUE RAISED IS THAT THE LEARNED CIT(A) ERRED IN MAKING ADDITION AT THE RATE OF 12.5% ON ACCOUNT OF BOGUS PURCHASES. 3. I HAVE HEARD BOTH THE COUNSEL AND PERUSED THE RECORDS. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS REFERRED TO HONBLE GUJARAT HIGH COURT DECISION IN THE CASE OF TAX APPEAL NO.240 OF 2003 IN THE CASE OF N.K.INDUSTRIES V. DCIT, ORDER DATED 20.06.2016, WHEREIN 100% OF THE BOGUS PURCHASES WILL BE HELD TO BE ADDED IN THE HANDS OF THE ASSESSEE AND TRIBUNALS RESTRICTION OF THE ADDITION TO 25% OF THE BOGUS PURCHASES WAS SET ITA NO.3011/MUM/2017. SHRI ASHOK VRAJLAL GOLWALA. 2 ASIDE. THE SPECIAL LEAVE PETITION AGAINST THIS ORDER ALONG WITH OTHERS HAS BEEN DISMISSED BY THE HONBLE APEX COURT VIDE ORDER DATED 16.01.2017. 4. HOWEVER, IN MY CONSIDERED OPINION, IT WOULD NOT BE APPROPRIATE TO TAKE AWAY THE BENEFIT GRANTED TO THE ASSESSEE. THIS IS ALSO NOT AN APPEAL BY THE REVENUE. ACCORDINGLY, I HOLD THAT A DISALLOWANCE OF 12.5% OUT OF THE BOGUS PURCHASE WOULD SERVE THE END OF JUSTICE. HENCE, I UPHOLD THE ORDER OF THE LEARNED CIT(A). 5. THE LEARNED COUNSEL OF THE ASSESSEE FAIRLY AGREED TO THE ADDITION AT 12.5% OF THE BOGUS PURCHASES AND DID NOT PRESS THE MATTER ANY FURTHER. 6. IN THE RESULT, THIS APPEAL BY THE ASSESSEE STANDS DISMISSED. ORDER PRONOUNCED ON THIS 05 TH DAY OF JULY, 2017. SD/- ( SHAMIM YAHYA ) ACCOUNTANT MEMBER MUMBAI; DATED : 05 TH JULY, 2017. DEVDAS* / COPY OF THE ORDER FORWARDED TO : TRUE COPY / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT, MUMBAI. 4. / CIT(A), MUMBAI 5. , , / DR, ITAT, MUMBAI 6. [ / GUARD FILE.