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

ITA 3025/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2653 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 09-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMITA VERMA
• Keywords: Bogus purchase; Opportunity of being heard
• Section: 201

Judgement Text

T HE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI SHRI SHAMIM YAHYA ( A M) I.T.A. NO. 3025 /MUM/ 201 9 (ASSESSMENT YEAR 2009 - 10 ) I.T.A. NO. 302 6 /MUM/2019 (ASSESSMENT YEAR 20 11 - 1 2 ) SHRI MOHAMMED MOBIN M.H. CHOUDHARY 2 ND LANE, TAR GALLI, JARI MARI , ANDHERI KURLA ROAD SAKINAKA, MUMBAI - 400 072. PAN : AIGPC78 45K V S . ITO - 26(3)(2) C - 12, ROOM NO. 603, 6 TH FLOOR PRATYAKSHA KAR BHAVAN, BKC BANDRA EAST MUMBAI - 400 051. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY NONE DEPARTMENT BY MS. SAMITA VERMA DA TE OF HEARING 09 . 1 1 . 20 20 DATE OF PRONOUNCEMENT 17 .11 . 20 20 O R D E R THESE ARE APPEALS BY THE ASSESSEE WHEREIN ASSESSEE HAS CHALLENGED LEARNED COMMISSIONER OF INCOME TAX (APPEALS) [IN SHORT LEARNED CIT(A)] ORDER U PHOLDING THE ADDITION ON ACC OUNT OF BOGUS PURCHASE @ 100% AS UNDER : A.Y. 2009 - 10 RS. 20,27,753/ - A.Y. 2011 - 12 RS. 6,01,500/ - 2. B RIEF FACTS OF THE CASE ARE THAT ASSESSEE IS ENGAGED IN THE BUSINESS OF RESELLER OF M.S. SCRAPS AND IRON AND STEEL. T HE ASSESSMENT WAS REOPENED PURSUAN T TO INFORMATION FROM THE SALES TAX DEPARTMENT THAT THE ASSESSEE HAS PURCHASED FROM CERTAIN BOGUS PARTIES. THE ASSESSING OFFICER IN THE ASSESSMENT ORDER NOTED THAT ASSESSEE DID NOT SUPPLY ANY INFORMATION FOR NOTICE GIVEN IN THIS REGARD. HENCE ASSESSING OFF ICER ADDED HUNDRED PERCENT OF THE BOGUS PURCHASES. 3. UPON ASSESSEE' S APPEAL S LEARNED CIT (A) NOTED THE ASSESSEE'S CONTENTION THAT ALL THE DOCUMENTS WERE SUBMITTED TO THE ASSESSING OFFICER. THEREAFTER ON SHRI MOHAMMED MOBIN M.H. CHOUDHARY 2 FURTHER ENQUIRY LEARNED CIT ( APPEALS ) NOTED THAT ASS ESSEE HAS CONTENDED THAT THE BOOKS OF ACCOUNTS AND DOCUMENTS WERE SEIZED BY THE SALES TAX DEPARTMENT AND ASSESSEE COULD NOT PRODUCE THE SAME. HOWEVER THE LEARNED CIT ( APPEALS ) REJECTED THIS CONTENTION . THEREAFTER ON THE BASIS OF SALES TAX DEPARTMENT INFORM ATION AND THE NON - FURNISHING OF DOCUMENTS AND DETAILS BY THE ASSESSEE LEARNED CIT ( APPEALS ) CONFIRMED THE HUNDRED PERCENT ADDITION MADE BY THE ASSESSING OFFICER FOR THE BOGUS PURCHASES . 4. A GAINST IN THIS ORDER ASSESSEE IS IN APPEAL BEFORE ITAT. I HAVE HEA RD THE LEARNED DEPARTMENTAL REPRESENTATIVE AND PERUSED THE RECORDS. I FIND THAT THE CONTENTION OF THE ASSESSEE BEFORE THE LEARNED CIT APPEALS IS THAT THE BOOKS AND DOCUMENTS WERE SEIZED BY THE SALES TAX THE DEPARTMENT AND AS SUCH THE ASSESSEE COULD NOT PRO DUCE THE SAME. FURTHERMORE I NOTE THAT THE SALES HAVE NEITHER BEEN EXAMINED NOR ANY ADVERSE INFERENCE TAKEN BY THE AUTHORITIES BELOW. IN SUCH CIRCUMSTANCES IN MY CONSIDERED OPINION INTEREST OF JUSTICE WILL BE SERVED IF THE ISSUE IS RE MI T TED TO THE FILE OF ASSESSING OFFICER FOR CONSIDERATION AFRESH. NEEDLESS TO ADD THE ASSESSEE SHOULD BE GRANTED ADEQUATE OPPORTUNITY OF BEING HEARD. 5. IN T HE RESULT TH E S E APPEAL S BY THE ASSESSEE STAND ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED UNDER RULE 34(4) OF T HE ITAT RULES BY PLACING THE RESULT ON NOTICE BOARD ON 17.11.2020. SD/ - (SH A MIM YAHYA ) ACCOUNTANT MEMBER MUMBAI ; DATED : 17 / 1 1 / 20 20 COPY OF THE ORDER FORW ARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI SHRI MOHAMMED MOBIN M.H. CHOUDHARY 3 6. GUARD FILE. BY ORDER, //TRUE COPY// ( ASSISTANT REGISTRAR ) PS ITAT, MUMBAI