MEDIBIOS LABORATORIES P.LTD, MUMBAI V. ITO WD 9(2)(3), MUMBAI

ITA 3752/MUM/2014

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9890 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 3 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 26-05-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUMAN KUMAR LD
• Assessee Lawyers: ANIL THAKRAR LD
• Keywords: Bogus purchase
• Section: 143(3); 133(6)

Judgement Text

ITA NO.3752/M/2014 MEDIBIOS LABORATORIES PRIVATE LIMITED ASSESSMENT YEAR 2010-11 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI , , BEFORE SHRI MAHAVIR SINGH, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO. 3752/MUM/2014 ( / ASSESSMENT YEAR: 2010-11) MEDIBIOS LABORATORIES P RIVATE LIMITED 102, MANGALAM, KULUPWADI NEAR NATIONAL PARK BORIVALI (E) MUMBAI 400 066 / VS. INCOME TAX OFFICER WARD 9(2)(3) MUMBAI ./ ./PAN/GIR NO. AABCM-4875-D ( ! /APPELLANT ) : ( '#! / RESPONDENT ) A SSESSEE BY : ANIL THAKRAR, LD.AR RE VENUE BY : SUMAN KUMAR, LD. DR / DATE OF HEARING : 04/09/2017 / DATE OF PRONOUNCEMENT : 06/09/2017 ITA NO.3752/M/2014 MEDIBIOS LABORATORIES PRIVATE LIMITED ASSESSMENT YEAR 2010-11 2 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE CAPTIONED APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2010-11 ASSAILS THE ORDER OF THE LD. COMMISSIONER O F INCOME-TAX (APPEALS)- 20 [CIT(A)], MUMBAI DATED 04/03/2014 QUA CONFIRMATION OF CERTAIN BOGUS PURCHASES FOR RS.3,22,452/-. THE REGISTRY HAS NOTED THAT THE APPEAL HAS BEEN FILED WITH A DELAY OF 23 DAYS. HOWEVER, THE LD. REPRESENTATIVE FOR ASSESSEE [AR] VIDE LETTER DATED 30/05/2014 HAS RECTIFIED FORM 36 SINCE DATE OF COMMUNICATION OF OR DER WAS WRONGLY MENTIONED IN ORIGINAL FORM 36 FILED BY THE ASSESSEE . THEREFORE, FINDING THE APPEAL IN ORDER, WE PROCEED TO DISPOSEOFF THE SAME ON MERITS. 2.1 BRIEFLY STATED, THE ASSESSEE BEING RESIDENT CORPORATE ASSESSEE ENGAGED IN THE BUSINESS OF PHARMACEUTICAL FORMULATIONS WAS ASSESSED FOR IMPUGNED AY U/S 143(3) ON 01/03/2013 AT LOSS OF RS.67,348/- AS AGAINST RETURNED LOSS OF RS.4,55,104/- E-FILED BY THE ASSESSEE ON 13/10/2010. THE SOLITARY ISSUE INVOLVED IN THE APPE AL IS ADDITION OF RS.3,22,452/- AGAINST BOGUS PURCHASES. 2.2 PURSUANT TO RECEIPT OF CERTAIN INFORMATION FROM SALES TAX DEPARTMENT, MAHARASHTRA REGARDING DEALERS INDULGING IN BOGUS PURCHASES BILLS, IT WAS NOTED THAT THE ASSESSEE STO OD BENEFICIARY OF SUCH BOGUS PURCHASE BILLS TO THE TUNE OF RS.3,22,452/- F ROM A CONCERN NAMELY ANMOL ENTERPRISES. THE ASSESSEE SUBMITTED THAT IT PURCHASED PACKING MATERIAL FROM THE SAID PARTY AGAINST INVOICE AND MA DE THE PAYMENT OF THE SAME THROUGH BANKING CHANNELS AND THEREFORE, THE PU RCHASES WERE ITA NO.3752/M/2014 MEDIBIOS LABORATORIES PRIVATE LIMITED ASSESSMENT YEAR 2010-11 3 GENUINE. HOWEVER, NO REPLY WAS RECEIVED AGAINST NOT ICE U/S 133(6) SENT TO ALLEGED BOGUS SUPPLIER TO CONFIRM THE TRANSACTIONS, WHICH LED THE LD. AO TO DISBELIEVE THE SAID PURCHASES AND CONSEQUENTL Y ADDED TO THE INCOME OF THE ASSESSEE. 3. AGGRIEVED THE ASSESSEE CONTESTED THE SAME WITHOU T ANY SUCCESS BEFORE LD. CIT(A) VIDE IMPUGNED ORDER DATED 04/03/2 014, WHO CONFIRMED THE ADDITION ON THE PREMISES THAT THE SAID DEALER A DMITTED TO ISSUANCE OF BOGUS BILLS BEFORE SALES TAX AUTHORITIES. AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 4. THE LD. AR DREW OUR ATTENTION TO THE FACT THAT T HE ASSESSEE PURCHASED PACKING MATERIAL FROM THE SAID PARTY AND THE PACKING MATERIAL HAS BEEN CONSUMED BY THE ASSESSEE AND THEREFORE, FU LL ADDITION WAS NOT JUSTIFIED. PER CONTRA, LD. DR SUPPORTED THE STAND OF LOWER AUTHORITIES. 5. HEARD AND PERUSED RELEVANT MATERIAL ON RECORD. I T IS NOTED THAT THE ASSESSEE HAS PURCHASED PACKING MATERIAL FROM THE SA ID PARTY AND CONSUMED THE SAME FOR ITS VARIOUS PRODUCTS. THIS FA CT IS NOWHERE CONTROVERTED BY THE REVENUE. THE ASSESSEE WAS IN PO SSESSION OF PURCHASE INVOICE AND PAYMENTS WERE THROUGH BANKING CHANNELS. ON THE OTHER HAND, NOTICE SENT U/S 133(6) FETCHED NO REPLY , WHICH CAST SERIOUS DOUBT ON ASSESSEES CLAIM. THEREFORE, IN SUCH A SIT UATION, THE ADDITION, WHICH COULD BE MADE, WAS TO ACCOUNT FOR PROFIT ELEM ENT EMBEDDED IN THE SAID PURCHASE TRANSACTION TO FACTORIZE FOR PROFIT E LEMENT EARNED BY ASSESSEE AGAINST POSSIBLE PURCHASE OF MATERIAL IN T HE GREY MARKET AND UNDUE BENEFIT OF VAT AGAINST BOGUS PURCHASES. WE ES TIMATE THE SAME @10%, KEEPING IN VIEW THE OVERALL FACTS AND CIRCUMS TANCES. THE LD. AO ITA NO.3752/M/2014 MEDIBIOS LABORATORIES PRIVATE LIMITED ASSESSMENT YEAR 2010-11 4 IS DIRECTED TO RE-COMPUTE THE INCOME / LOSS IN THE LIGHT OF OUR ABOVE ORDER. 6. RESULTANTLY, THE ASSESSEES APPEAL STANDS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 06 TH SEPTEMBER, 2017. SD/- SD/- (MAHAVIR SINGH) (M ANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 06.09.2017 SR.PS:- THIRUMALESH ! / 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 FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI