SHRI CHANDRAKANT KHIMJI MOTA, MUMBAI V. ITO 19(1)(3), MUMBAI

ITA 3120/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6469 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 10-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KAVITA P KAUSHIK
• Keywords: Bogus purchase
• Section: 12A; 148; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI , ! BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 3120 / /201 9 ((. . 2011-12 ) ITA NO .3120/MUM/2019 (A.Y.2011-12) SHRI CHANDRAKANT KHIMJI MOTA, 12A BANA BUILD, SOPARIWALA HOUSE, LAMINGTON ROAD, MUMBAI 400 007 / VS. INCOME TAX OFFICER 19(1)(3), MATRU MANDIR, ROOM NO.220, TARDEO ROAD, MUMBAI 400 007 PAN/GIR NO:AADPM 8221A ( /APPELLANT ) : ( / RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : MS KAVITA P. KAUSHIK / DATE OF HEARING : 15/09/2020 / DATE OF PRONOUNCEMENT : 17/09/2020 / ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) 5, MUMBAI [I N SHORT THE CIT(A)] DATED 08/03/2019 FOR THE ASSESSMENT YEAR 2011-12. 2. A PERUSAL OF THE ASSESSMENT ORDER SHOWS THAT TH E ASSESSEE HAS FAILED TO APPEAR BEFORE THE ASSESSING OFFICER DESPITE NOTICES AND NO RETURN IN RESPONSE TO NOTICE UNDER SECTION 148 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) WAS FILED BY THE ASSESSEE. CONSEQUENTLY, THE ASSESSING OFFICER WAS CONSTRAINED TO PASS ASSESSMENT ORDER DATED 27/12/2016 UNDER SECTI ON 144 R.W.S. 147 OF THE ACT. THE ASSESSEE IS A WHOLESALE TRADER OF ELECTRON IC ITEMS. THE ASSESSEE ALLEGEDLY OBTAINED BOGUS PURCHASE BILLS AGGREGATING TO RS.57,84,080/- FROM 2 ITA NO.3120/MUM/2019 (A.Y.2011-12) HAWALA DEALERS DECLARED BY SALES TAX DEPARTMENT, G OVERNMENT OF MAHARASHTRA. THE ASSESSING OFFICER MADE ADDITION O F 12.5% OF TOTAL ALLEGED BOGUS PURCHASE I.E. 7,23,010. AGGRIEVED BY ADDITION MADE IN THE ASSESSMENT ORDER, THE ASSESSEE FILED APPEAL BEFORE CIT(A). THE CIT(A) DISMISSED THE APPEAL OF ASSESSEE AND CONFIRMED THE ADDITIONS MADE BY ASS ESSING OFFICER IN TOTO. THE ASSESSEE IS NOW IN APPEAL BEFORE THE TRIBUNAL A SSAILING THE FINDING OF CIT(A). 3. MS. KAVITA P. KAUSHIK, REPRESENTING THE DEPARTME NT VEHEMENTLY SUPPORTED THE IMPUGNED ORDER AND PRAYED FOR DISMISS ING THE APPEAL OF ASSESSEE. 4. HEARD. ORDER OF THE AUTHORITIES BELOW AND THE MA TERIAL AVAILABLE ON RECORD EXAMINED. IN THE STATEMENT OF FACTS FILED AL ONGWITH GROUNDS OF APPEAL, THE ASSESSEE HAS TABULATED GP RATIO DURING ASSESSME NT YEARS 2010-11, 2011-12 AND 2012-13 AS 8.69%, 9.43% AND 12.24%, RESPECTIVEL Y. TAKING INTO CONSIDERATION ENTIRETY OF FACTS, I AM OF CONSIDERED VIEW THAT THE ENDS OF JUSTICE WOULD MEET, IF, ADDITION ON ACCOUNT OF BOGUS PURCHA SES IS RESTRICTED TO 10.12% I.E. AVERAGE G.P. RATIO OF THE THREE ASSESSMENT YEA RS I.E. 2010-11, 2011-12 AND 2012-13. THE APPEAL OF THE ASSESSEE IS PARTLY ALLO WED IN THE TERMS AFORESAID. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED ON THURSDAY THE 17 TH DAY OF SEPTEMBER, 2020. SD./- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, +(/ DATED: 17/09/2020 VM , SR. PS(O/S) 3 ITA NO.3120/MUM/2019 (A.Y.2011-12) COPY OF THE ORDER FORWARDED TO : 1. , / THE APPELLANT , 2. -. / THE RESPONDENT. 3. /. ( )/ THE CIT(A)- 4. /. CIT 5. 01-.( , . . . , / DR, ITAT, MUMBAI 6. 12345 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI