PURAM MODI, MUMBAI V. ITO 19(2)(5), MUMBAI

ITA 3414/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9972 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 11-05-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V JANARDHANAN
• Assessee Lawyers: SUMIT MISHRA
• Keywords: Bogus purchase

Judgement Text

- IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI , BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ./ I.T.A. NO. 3414/MUM/2017 ( / ASSESSMENT YEAR: 2010 - 11 ) PURARAM MODI 2 ND FLOOR, ROOM NO. 10, PUSHPA SADAN, 2/4, 2 ND CARPENTER STREET, MUMBAI - 400 004 / VS. ITO - 19(2)(5) ROOM NO. 210, MATRU MANDIR, TARDEO ROAD, MUMBAI - 400 007 ./ ./ PAN/GIR NO. ARLPM 5879 R ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI SUMIT MISHRA / RESPONDENT BY : SHRI V. JANARDHANAN / DATE OF HEARING : 29.06.2017 / DATE OF PRONOUNC EMENT : 01/09 / 2017 / O R D E R PER SHAMIM YAHYA , A. M.: THIS IS AN APPEAL BY THE ASSESSEE DIRECT ED AGAINST ORDER OF LEARNED CIT( A ) - 29, MUMBAI DATED 09.02.2017 AND PERTAINS TO ASSESSMENT YEAR 2010 - 11. 2. T HE ISSUE RAISED IS THAT CIT - A ERRED I N MAKING ADDITION AT THE RATE OF 12.5% MINUS GROSS PROFIT ON ACCOUNT OF BOGUS PURCHASE. 2 ITA NO. 3414/MUM/2017 (A.Y. 2010 - 11) PURARAM MODI VS. ITO 3. I HAVE HEARD BOTH THE COUNSEL AND PERUSED THE RECORDS. I FIND THAT OVERWHELMING EVIDENCE ARE ON RECORD THAT THE IMPUGNED PURCHASES ARE BOGUS. THE L EARNED DEPARTMENTA L REPRESENTATIVE HAS REFERRED TO HONOURABLE GUJARAT HIGH COURT DECISION IN THE CASE OF TAX APPEAL NO 240 OF 2003 IN THE CASE OF N K INDUSTRIES VS DY CIT , ORDER DT 20/06.2016, WHEREIN HUNDRED PERCENT OF THE BOGUS PURCHASES WILL HELD TO BE ADDED IN THE HAND S OF THE ASSESSEE AND TRIBUNALS RESTRICTION OF THE ADDITION TO 25% OF THE BOGUS PURCHASES WAS SET ASIDE. THE SPECIAL LEAVE PETITION AGAINST THIS ORDER ALONGWITH OTHERS HAS BEEN DISMISSED BY THE HONOURABLE APEX COURT VIDE ORDER DT 16 .1 2017. 4. HOWEVER I N MY CONSIDERED OPINION IT WOULD NOT BE APPROPRIATE TO TAKE WITH THE BENEFIT GRANTED TO THE ASSESSEE. THIS IS ALSO NOT AN APPEAL BY THE REVENUE. ACCORDINGLY I HOLD THAT A DISALLOWANCE OF 12.5% MINUS GROSS PROFIT OUT OF THE BOGUS PURCHASE WOULD SERVE THE EN D OF JUSTICE. HENCE I UPHOLD THE ORDER OF LEARNED CIT - A 5. THE LEARNED COUNSEL OF THE ASSESSEE FAIRLY AGREED TO THE APPELLATE ORDER/LD. CIT(A) AND DID NOT PRESS THE MATTER ANY FURTHER. 6. IN THE RESULT THIS APPEAL FILED BY THE ASSESSEE STANDS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 01/09/2017 SD/ - (S HAMIM YAHYA ) / A CCOUNTANT MEMBER MUMBAI ; DATED : 01/09/2017 3 ITA NO. 3414/MUM/2017 (A.Y. 2010 - 11) PURARAM MODI VS. ITO . . ./ ROSHANI , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F ILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI