BENITE STEELS LTD, MUMBAI V. ITO 1(1)(1), MUMBAI

ITA 3403/MUM/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0571 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 16-05-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V JENARDHANAN LD
• Assessee Lawyers: AMIT C JHAVERI LD
• Keywords: Bogus purchase; Reassessment proceedings
• Section: 143(3); 133(6); 147; 131; 148

Judgement Text

ITA.NO.3403/MUM/2016 BENITE STEELS LIMITED ASSESSMENT YEAR-2009-10 IN THE INCOME TAX APPELLATE TRIBUNAL K BENCH, MUMBAI , , BEFORE SHRI SAKTIJIT DEY, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.3403/MUM/2016 ( / ASSESSMENT YEAR: 2009-10) BENITE STEELS LIMITED 1 & 2, GF, JAHANGIR MANSION CINEMA LANE, BEHIND METRO THEATRE MUMBAI 400 020 / VS. INCOME TAX OFFICER - 1(1)(1) MUMBAI ! ./ ./PAN/GIR NO. AABCB-9301-R ( !# /APPELLANT ) : ( $%!# / RESPONDENT ) A SSESSEE BY : AMIT C.JHAVERI, LD. AR RE VENUE BY : V.JENARDHANAN, LD. DR / DATE OF HEARING : 31/01/2018 / DATE OF PRONOUNCEMENT : 07/02/2018 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE CAPTIONED APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2009-10 ASSAILS THE ORDER OF THE LD. COMMISSIONER O F INCOME-TAX (APPEALS)-2 [CIT(A)], MUMBAI, APPEAL NO.CIT(A)-2/IT/46/2014-15 DATED 26/02/2016. THE ASSESSMENT FOR IMPUGNED AY WAS FRAMED BY LD. INCOME TAX OFFICER-1(1)(1) [AO] U/S 143(3) READ WIT H SECTION 147 OF THE ITA.NO.3403/MUM/2016 BENITE STEELS LIMITED ASSESSMENT YEAR-2009-10 2 INCOME TAX ACT, 1961 ON 24/03/2014. THE SOLITARY ISSUE INVOLVED IN THE APPEAL IS ADDITION AGAINST CERTAIN ALLEGED BOGUS PURCHASES. 2.1 FACTS LEADING TO THE SAME ARE THAT THE ASSESSEE BEING RESIDENT CORPORATE ASSESSEE ENGAGED IN TRADING OF IRON & STEEL WAS SUBJECTED TO AN ASSESSMENT U/S 143(3) READ WITH SECTION 147 FOR IMPUGNED AY AT RS.10,71,88,997/- AFTER ADDITION OF CERTAIN BOGUS PURCHASES FOR RS.10,70,45,159/-. THE ORIGINAL RETURN WAS FILED ON 25/09/2009 AT RS.1,43,838/- WHICH WAS PROCESSED U/S 143(1). THE A SSESSEE REFLECTED TURNOVER OF RS.31.77 CRORES. 2.2 THE REASSESSMENT PROCEEDINGS WERE INITIATED UPO N RECEIPT OF CERTAIN INFORMATION FROM SALES TAX DEPARTMENT, MAHARASHTRA REGARDING DEALERS INDULGING IN BOGUS PURCHASE BILLS AND IT WAS NOTED THAT THE ASSESSEE STOOD BENEFICIARY OF SUCH BOGUS PURCHASE BILLS TO THE TUNE OF RS.10,70,45,159/- FROM FOUR SUCH PARTIES. CONSEQUEN TLY, STATUTORY NOTICE U/S 148 DATED 14/03/2013 WAS ISSUED TO THE ASSESSEE WHICH WAS FOLLOWED BY NOTICES U/S 143(2) AND 142(1). 2.3 DURING ASSESSMENT PROCEEDINGS, THE ASSESSEE, INTER-ALIA, PLEADED THAT THE PURCHASES WERE GENUINE AND PRODUCED PARTY WISE SALE/PURCHASE DETAILS, BANK STATEMENT EVIDENCING PAYMENTS TO SUPP LIERS. HOWEVER, NOTICES U/S 133(6) AS WELL AS SUMMONS U/S 131 ISSUE D TO ALLEGED BOGUS SUPPLIERS REMAINED UN-SERVED WITH REMARKS NOT KNOWN / NOT CLAIMED. FINALLY, NOT CONVINCED, LD. AO DISALLOWED THE PURCH ASES AND ADDED THE SAME TO THE INCOME OF THE ASSESSEE. 3. AGGRIEVED, THE ASSESSEE CONTESTED THE SAME WITH PARTIAL SUCCESS BEFORE LD.CIT(A) VIDE IMPUGNED ORDER DATED 26/02/20 16 WHERE LD. ITA.NO.3403/MUM/2016 BENITE STEELS LIMITED ASSESSMENT YEAR-2009-10 3 CIT(A) RESTRICTED THE DISALLOWANCE TO 12.5%. AGGRIE VED, THE ASSESSEE IN IS FURTHER APPEAL BEFORE US. 4. THE LD. DEPARTMENTAL REPRESENTATIVE [DR], AT THE OUTSET, DREW OUR ATTENTION TO THE FACT THAT THE REVENUE ALSO CONTEST ED THE STAND OF LD. CIT(A) BEFORE THIS TRIBUNAL VIDE ITA NO.3161/MUM/20 16 DATED 04/08/2017 WHERE THE TRIBUNAL FOUND THE ADDITION AS ESTIMATED BY LD. CIT(A) TO BE REASONABLE ONE AND DISMISSED THE REVEN UES APPEAL AND THEREFORE, THE SAME VIEW MAY BE TAKEN HERE. THE LD. AUTHORIZED REPRESENTATIVE [AR] FOR ASSESSEE, WHILE CONCEDING T HE SAME, PLEADED FOR FURTHER RELIEF. 5. WE HAVE PERUSED THE CITED ORDER OF THE TRIBUNAL. WE CONCUR WITH THE STAND OF THE REVENUE THAT A VIEW HAS ALREADY BE EN TAKEN BY THE TRIBUNAL ON FACTUAL MATRIX AGAINST REVENUES APPEAL . IT IS ALSO NOTED THAT THE SAID ORDER IS CO-AUTHORED BY ONE OF US AND THER EFORE, RESPECTFULLY FOLLOWING THE SAME, HOLDING THAT THE ESTIMATED ADDI TION WAS REASONABLE ONE, WE DISMISS ASSESSEES APPEAL. 6. RESULTANTLY, THE ASSESSEES APPEAL STANDS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 07 TH FEBRUARY, 2018. SD/- SD/- (SAKTIJIT DEY) (MANOJ KUMAR A GGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 07. 02.2018 SR.PS:- THIRUMALESH ITA.NO.3403/MUM/2016 BENITE STEELS LIMITED ASSESSMENT YEAR-2009-10 4 ! / COPY OF THE ORDER FORWARDED TO : 1. !# / THE APPELLANT 2. $%!# / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. $. , . , / DR, ITAT, MUMBAI 6. /0 / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI