ASHOK BHANDARI, MUMBAI V. ITO 19(1)(2), MUMBAI

ITA 3416/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9249 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-09-2017
• 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: S K MITRA
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM ITA NO. 3416 / MUM/20 17 ( ASSESSMENT YEAR 2010 - 11 : ) SHRI ASHOK BHANDARI PIONEER FORGE INDIA 178/180, TULSI BUILDING SHOP NO.35, KHETWADI BACK ROAD MUMBAI - 400 004 VS . ITO 19(1)(2), R.NO.204, MATRU MANDIR TARDEO ROAD, MUMBAI 400 007 PAN/GIR NO. AABPB1870G APPELLANT ) .. RESPONDENT ) ASSESSEE BY NONE REVENUE BY SHRI S.K. MITRA DATE OF HEARING 07 / 09 /201 7 DATE OF PRONOUNCEME NT 25 / 09 /201 7 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 29, MUMBAI DATED 09/02/2017 FOR A.Y.2010 - 11 IN THE MATTER OF ORDER PASSED U/S.143(3) R.W.S. 147 OF THE IT ACT. 2. IN THIS APPEAL, AS SESSEE IS AGGRIEVED FOR UPHOLDING THE PART OF ADDITION MADE ON ACCOUNT OF BOGUS PURCHASES. 3. NOBODY APPEARED ON BEHALF OF ASSESSEE INSPITE OF GIVING OPPORTUNITY, THEREFORE, BENCH DECIDED TO DISPOSE THE APPEAL AFTER HEARING THE LEARNED DR AND CONSIDERING T HE MATERIAL PLACED ON RECORD. 3. I HAVE GONE THROUGH THE ORDERS OF THE A UTHORITIES BELOW AND FOUND THAT BOGUS PURCHASES WERE FOUND DURING THE YEAR AMOUNTING TO RS.2,04,93,150/ - . T HE AO STATED IN THE ASSESSMENT ORDER THAT BARRING THE ITA NO. 3416/MUM/2017 SHRI ASHOK BHANDARI 2 LEDG ER ACCOUNT AND CHE QUE PAYMENT DETAILS, NO OTHER DOCUMENTS LIKE DELIVERY CHALLANS, LORRY RECEIPTS, TRANSPORTATION DETAILS ETC WERE PRODUCED DURING THE COURSE OF ASSESSMENT PROCEEDINGS. FURTHER THESE ALLEGED HAWALA PARTIES HAVE ADMITTED IN FRONT OF THE SATES TAX DEPARTMENT TH AT THEY HAVE NOT MADE ANY SALE OR PURCHASE TRANSACTIONS. THIS CLEARLY SHOWS THAT THE PURCHASES SHOWN TO HAVE BEEN MADE BY THE ASSESSEE FROM THESE FIRMS ARE NON GENUINE. FURTHER, THE AO TRIED TO INDEPENDENTLY VERIFY THE GENUINENESS OF THE PURCHASES BY ISSUI NG NOTICES U/S. 133(6 ) TO THESE PARTIES WHICH WERE RETURNED UNSERVED BY THE POSTAL AUTHORITIES. THE ASSESSEE WAS ALSO ASKED TO PRODUCE THE SUPPLIERS FOR VERIFICATION BUT THE ASSESSEE FAILED TO PRODUCE THEM. FURTHER, THE ASSESSEE HAS SHOWN CORRESPONDING SAL ES ON THESE PURCHASES. THEREFORE, IT WAS PRESUMED BY THE AO THAT THE ASSESSEE HAS PURCHASED GOODS FROM THE GREY MARKET PROBABLY WITHOUT BILLS AND HAD TAKEN ACCOMMODATION BILLS FROM THE ALLEGED PARTIES. THE AO RELYING ON THE DECISION OF CIT VS. SIMIT P. SHE TH 356 ITR 451 ESTIMATED THE ADDITIONAL GP @12.5% OF THE ALLEGED BOGUS PURCHASES. IN VIEW OF THIS OVERWHELMING ADVERSE INFORMATION, THE AO HAS ESTIMATED THE ADDITIONAL GP @12.5% OF THE ALLEGED HAWALA PURCHASES. 4. AFTER CONSIDERING THE FACTS AND CIRCUMSTA NCES OF THE CASE AND APPLYING VARIOUS JUDICIAL PRONOUNCEMENTS, THE CIT(A) RESTRICTED THE ADDITION TO THE EXTENT OF 12.5% AND HAS GIVEN FURTHER RELIEF BY DIRECTING THE AO TO REDUCE THE GP RATE DECLARED BY THE ASSESSEE. THE PRECISE OBSERVATION OF CIT(A) WAS AS UNDER: - ITA NO. 3416/MUM/2017 SHRI ASHOK BHANDARI 3 4.3.3. IN VIEW OF THE ABOVE, THE ADDITION MADE BY THE AO OF RS.25,61,644/ - BEING 12.5% OF THE BOGUS PURCHASES IS UPHELD. HOWEVER, THE AO IS DIRECTED TO REDUCE THE GP ALREADY DECLARED BY THE APPELLANT ON THESE PURCHASES. THIS GROUND OF APPEAL IS PARTLY ALLOWED. 5. KEEPING IN VIEW THE TOTALITY OF FACTS AND CIRCUMSTANCES, I DO NOT FIND ANY I NFIRMITY IN THE ORDER OF CIT(A), WHO HAS REASONABLY FURTHER REDUCED THE ADDITION SO MADE BY AO TO THE EXTENT OF G.P. ALREADY DECLARED BY ASSESSEE. 6. IN THE RES ULT, APPEAL OF THE ASSESSEE IS DISMISSED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 25 / 09 /2017 S D/ - ( R.C.SHARMA ) ACCOUNTANT MEMBER MUMBAI ; DATED 25 / 09 /201 7 KARUNA SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//