KETAN GOKULDAS BADIANI, MUMBAI V. ITO 33(2)(2), MUMBAI

ITA 3013/MUM/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 0011 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-04-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2009-2010
• Appeal Filed On: 10-05-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR SINGH LD
• Assessee Lawyers: R C THAKKAR LD
• Keywords: Bogus purchase
• Section: 143(3); 133(6); 148

Judgement Text

ITA NO.3013/MUM/2018 ITA NO.3120/MUM/2018 KETAN GOKULDAS BADIANI ASSESSMENT YEAR :2009-10 1 IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI , , BEFORE HONBLE SHRI AMARJIT SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.3013/MUM/2018 ( / ASSESSMENT YEAR: 2009-10) KETAN GOKULDAS BADIANI F-221, RAJ ARCADE AHAVEER NAGAR, DHANUKAR WADI. KANDIVALI(W), MUMBAI. / VS. INCOME TAX OFFICER - 33(2)(2) ROOM NO.609, 6 TH FLOOR PRATYAKSHKAR BHAVAN, BKC BANDRA (E), MUMBAI-400 051. !' ./ ./PAN/GIR NO. AJAPB -1472-C ( '$ /APPELLANT ) : ( %&'$ / RESPONDENT ) & ./ I.T.A. NO.3120/MUM/2018 ( / ASSESSMENT YEAR: 2009-10) INCOME TAX O FF ICER - 33(2)(2) ROOM NO.609, 6 TH FLOOR PRATYAKSHKAR BHAVAN, BKC BANDRA (E), MUMBAI-400 051. / VS. KETAN GOKULDAS BADIANI FLAT NO. 602 NU, MODERN SOCIETY DAHANUKARWADI, CAPT. SAMEER CHANDAWARKAR LANE KANDIVALI (E)- MUMBAI. !' ./ ./PAN/GIR NO. AJAPB -1472- C ( '$ /APPELLANT ) : ( %&'$ / RESPONDENT ) ASSESSEE BY : R.C. THAKKAR- LD. AR REVENUE BY : MANOJ KUMAR SINGH - LD.DR / DATE OF HEARING : 25/03/2019 / DATE OF PRONOUNCEMENT : 02/04/2019 ITA NO.3013/MUM/2018 ITA NO.3120/MUM/2018 KETAN GOKULDAS BADIANI ASSESSMENT YEAR :2009-10 2 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID CROSS APPEALS FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2009-10 CONTEST THE ORDER OF LD. COMMISSIO NER OF INCOME-TAX (APPEALS)-45, MUMBAI, [IN SHORT REFERRED TO AS CIT (A)], APPEAL NO. CIT(A)-45/ITO-33(2)(2)/ITA-27/2015-16 DATED 27/02/2018 WHEREIN THE SOLE ISSUE INVOLVED IS ADDITION ON ACCOUNT OF ALLEGED BOGUS PURCHASES. 2.1 FACTS LEADING TO THE SAME ARE THAT ASSESSEE BEI NG RESIDENT INDIVIDUAL ENGAGED IN DEALING IN LEATHER ITEMS UNDER PROPRIETORSHIP CONCERN NAMELY M/S ROYAL BELTS WAS ASSESSED U/S. 143(3) R.W.S. 147 FOR IMPUGNED AY ON 23/03/2015 WHEREIN THE INCOME OF THE ASSESSEE WAS ASSESSED AT RS.57.88 LACS AFTER SOLE ADDITION ON AC COUNT OF ALLEGED BOGUS PURCHASES FOR RS.55.68 LACS. THE ORIGINAL RETURN OF INCOME F ILED BY THE ASSESSEE ON 25/01/2010 AT RS.2.20 LACS WAS P ROCESSED U/S.143(1). 2.2 THE RE-ASSESSMENT PROCEEDINGS GOT TRIGGERED UPO N RECEIPT OF CERTAIN INFORMATION FROM DGIT (INV.)/ SALES TAX DEPARTMENT, MAHARASHTRA THAT THE ASSESSEE STOOD BENEFICIARY OF BOGUS PURCHASES BILLS AGGREGATING TO RS.55.68 LACS FROM 11 PARTIES, THE DETAILS OF WH ICH HAS ALREADY BEEN EXTRACTED AT PARA-2 OF THE QUANTUM ASSESSMENT ORDER. ACCORDINGLY, NOTICE U/S 148 DATED 14/03/2014 WAS ISSUED TO THE A SSESSEE WHICH WAS FOLLOWED BY STATUTORY NOTICES U/S. 143(2) AND 142(1 ) WHEREIN THE ASSESSEE WAS DIRECTED TO ESTABLISH THE GENUINENESS OF THE PURCHASES. 2.3 NOTICES ISSUED U/S. 133(6) TO ALL THE SUPPLIERS TO CONFIRM THE TRANSACTIONS WERE RETURNED BY POSTAL AUTHORITIES WI TH THE REMARKS NOT ITA NO.3013/MUM/2018 ITA NO.3120/MUM/2018 KETAN GOKULDAS BADIANI ASSESSMENT YEAR :2009-10 3 KNOWN / LEFT WHICH WAS CONFRONTED TO THE ASSESSEE. ALTHOUGH THE ASSESSEE, IN SUPPORT OF THE TRANSACTIONS, SUBMITTED INVOICES, BANK STATEMENTS, STOCK REGISTER ETC., HOWEVER, FAILED TO SUBSTANTIATE THE DELIVERY OF THE MATERIAL. THE FACTUAL MATRIX LED TH E LD. AO TREAT THE PURCHASES AS NON-GENUINE AND ACCORDINGLY, THE SAME WERE ADDED TO THE INCOME OF THE ASSESSEE. 3. AGGRIEVED THE ASSESSEE AGITATED THE SAME BEFORE LD. CIT(A) VIDE IMPUGNED ORDER DATED 27/02/2018 WHEREIN THE LD. FIR ST APPELLATE AUTHORITY, AFTER DUE CONSIDERATION OF FACTUAL MATRI X AS WELL AS ASSESSEES SUBMISSION, RESTRICTED THE IMPUGNED ADDITIONS TO 5% WHICH HAS GIVEN RISE TO THE CROSS-APPEALS BEFORE US. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED RELEVANT MATERIAL ON RECORD. WE ARE OF THE CONSIDERED OPINION THAT TH ERE COULD BE NO SALE WITHOUT ACTUAL PURCHASE OF MATERIAL KEEPING IN VIEW THE ASSESSEES NATURE OF BUSINESS. THE ASSESSEE WAS IN POSSESSION OF PRIMARY PURCHASE DOCUMENTS. THE SALES TURNOVER HAS NOT BEEN DISPUTED BY THE REVENUE. AT THE SAME TIME, THE ASSESSEE FAILED TO C ONCLUSIVELY SUBSTANTIATE THE DELIVERY OF MATERIAL. NOTICES ISSU ED U/S 133(6) DID NOT ELICIT SATISFACTORY RESPONSE. THEREFORE, IN SUCH A SITUATION, THE ADDITION, WHICH COULD BE MADE, WAS TO ACCOUNT FOR PROFIT ELEM ENT EMBEDDED IN THESE PURCHASE TRANSACTIONS TO FACTORIZE FOR PROFIT EARNED BY ASSESSEE AGAINST POSSIBLE PURCHASE OF MATERIAL IN THE GREY M ARKET AND UNDUE BENEFIT OF VAT AGAINST SUCH BOGUS PURCHASES, WHICH FIRST APPELLATE AUTHORITY HAS RIGHTLY DONE. THEREFORE, FINDING THE SAME TO BE A REASONABLE ONE, WE DISMISS THE CROSS APPEALS. ITA NO.3013/MUM/2018 ITA NO.3120/MUM/2018 KETAN GOKULDAS BADIANI ASSESSMENT YEAR :2009-10 4 5. THE CROSS APPEALS STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND APRIL, 2019. SD/- SD/- (AMARJIT SINGH) (M ANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 02/04/2019 SR.PS, JAISY VARGHESE !'! / COPY OF THE ORDER FORWARDED TO : 1. '$ / THE APPELLANT 2. %&'$ / THE RESPONDENT 3. , ( ) / THE CIT(A) 4. , / CIT CONCERNED 5. -.%/ , / , / DR, ITAT, MUMBAI 6. .012 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.