ITO 29(2)(1), MUMBAI V. KIRAN NAVIN DOSHI, MUMBAI

ITA 3190/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1411 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2017
• Appeal Filed By: Department
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 05-05-2016
• Court: TRIBUNAL
• Department Lawyers: BEENA SANTOSH
• Keywords: Bogus purchase
• Section: 69C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER ITA NO.3190/M/2016 (AY 2009 - 2010) ITO - 29(2)(1), MUMBAI. / VS. SMT. KIRAN NAVIN DOSHI, D - 705, KALP NAGRI, B.R. ROAD, MULUND (W), MUMBAI 400080. ./ PAN : ABWPD5848A ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : MS. BEENA SANTOSH, DR / RESPONDENT BY : NONE / DATE OF HEARING : 20.03.2017 / DATE OF PRONOUNCEMENT : 12 .04.2017 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE REVENUE ON 5.5.2016 IS AGAINST THE ORDER OF THE CIT (A) - 40, MUMBAI DATED 10.02.2016 FOR THE ASSESSMENT YEAR 2009 - 2010. 2. THE ONLY ISSUE RAISED IN THIS APPEAL RELATES TO THE CIT (A)S DECISION IN RESTRICTING THE ADDITION U/S 69C OF THE ACT TO RS. 5,15,377/ - . BRIEFLY STATED RELEVANT FACTS OF THE CASE ARE THAT THE AO MADE ADDITION OF RS. 41,23,015 / - U/S 69C OF THE ACT ON ACCOUNT OF BOGUS PURCHASES. THESE PURCHASES ARE SAID TO BE FROM THE PARTIES WHOSE NAMES ARE APPEARED IN THE OFFICIAL WEBSITE OF THE SALES TAX DEPARTMENT. MATTER TRAVELLED TO THE FIRST APPELLATE AUTHORITY. 3. DURING THE PROCEEDING S BEFORE THE FIRST APPELLATE AUTHORITY, CIT (A) RESTRICTED THE ADDITION TO 12.5% OF THE SAID BOGUS PURCHASES. AGGRIEVED WITH THE SAME, REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. 4. DURING THE PROCEEDINGS BEFORE THE TRIBUNAL, NONE APPEARED TO REPRESENT THE CASE OF THE ASSESSEE. HOWEVER, LD DR FOR THE REVENUE MENTIONED THAT THIS IS A CASE WHERE THE CIT (A) RESTRICTED THE ADDITION TO NET GP OF 12.5%. LD DR RELIED ON THE ORDER OF THE AO DUTIFULLY. 2 5. AFTER HEARING THE LD DR AND ON PERUSAL OF THE ORDERS OF THE REVENUE AUTHORITIES AS WELL AS THE RELEVANT MATERIAL PLACED BEFORE THE TRIBUNAL, I FIND, THE CIT (A) HAS TAKEN A FAIR VIEW AND THE SAME IS IN TUNE WITH THE SETTLED LEGAL POSITION OF THE ISSUE BY VIRTUE OF THE JUDGMENT OF THE HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. SIMIT P. SHETH , ITA NO. 553 OF 2012, DATED 16.1.2013 READ WITH THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF NICKUNJ EXIMP ENTERPRISES PVT LTD VS. ACIT VIDE WRIT PETITION NO. 2860 OF 2012, DATED 18 TH JUNE, 2014 WHEREIN RESTRICTING THE ADDITION TO THE GP RATE OF 12.5% IS APPROVED. CONSIDERING THE SAME I AM OF THE VIEW THE ORDER OF THE CIT (A) IS FAIR AND REASONABLE AND IT DOES NOT CALL FOR ANY INTERFERENCE. ACCORDINGLY, GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 2 T H APRIL, 2017. S D / - (D. KARUNAKARA RAO) ACCOUNTANT MEMBER MUMBAI ; 12 .04.2017 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI