CMS COMPUTERS LTD, MUMBAI V. ASST CIT CEN CIR 3(2), MUMBAI

ITA 3763/MUM/2017

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 9855 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 23-05-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Bogus purchase; Accommodation entries

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI SANDEEP GOSAIN , JM ITA NO. 3763 / MUM/20 17 ( ASSESSMENT YEAR : 2009 - 10 ) M/S. CMS COMPUTERS LTD., CMS LAKE CENTRE, 70 LAKE ROAD, BHANDUP (W) MUMBAI 400 078 VS. ACIT CC 3(2) MUMBAI PAN/GIR NO. AAACC1758L ( APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY NONE REVENUE BY SHRI ABI RAMA KARTHIKEYAN DATE OF HEARING 24 / 09 /201 8 DATE OF PRONOUNCEMENT 24/09 /201 8 / 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) - 51, MUMBAI DATED 22/03/2017 FOR A.Y.2009 - 10 IN THE MATTER OF ORDER PASSED U/S.143(3) R.W.S. 147 OF THE IT ACT. 2. THE GRIEVANCE OF ASSESSEE RELAT ES TO UPHOLDING THE ADDITION OF 12.5% IN RESPECT OF BOGUS PURCHASES. NOBODY APPEARED ON BEHALF OF THE ASSESSEE INSPITE OF GIVING THE OPPORTUNITY, THE BENCH, THEREFORE, DECIDED TO DISPOSE OF THE APPEAL AFTER HEARING LEARNED D R AND CONSIDERING THE MATERIAL PLACED ON RECORD. ITA NO. 3763/MUM/2017 M/S. CMS COMPUTERS LTD., 2 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION ON 30.09.2009 DECLARING LOSS OF RS.13,31,22,438/ - . SUBSEQUENTLY, THE AO RECEIVED A INFORMATION FROM SALES TAX AUTHO RITY THROUGH DGIT(INV.), MUMBAI THAT SOME DEALERS UNDER MVAT ACT, WERE INDULGED IN THE PRACTICE OF PROVIDING ACCOMMODATION ENTRIES IN THE FORM OF ISSUING BOGUS SALES BILLS / TAX INVOICES AND NOT SUPPLYING THE GOODS PHYSICALLY. SUCH INFORMATION WAS BASED ON THEIR ADMISSION ON THE BASIS OF STATEMENTS / DEPOSITION FILED BEFORE THE SALES TAX AUTHORITIES AND THE ASSESSEE WAS FOUND TO BE ONE OF THE BENEFICIARIES OF SUCH BOGUS PURCHASES OR ACCOMMODATION ENTRIES. CONSEQUENTLY, THE ASSESSMENT IN THE CASE OF THE ASSE SSEE WAS REOPENED U/S 147 VIDE ISSUE OF A NOTICE U/S 148. WHILE COMPLETING THE ASSESSMENT THE AO OBSERVED THAT DURING THE YEAR ASSESSEE HAD MADE PURCHASES OF RS.78,38,530/ - FROM BOGUS SUPPLIERS. ACCORDINGLY, HE ADDED THE ENTIRE AMOUNT OF SUCH PURCHASES IN ASSESSEES INCOME. 4. BY THE IMPUGNED ORDER, CIT(A) RESTRICTED THE ADDITION TO THE EXTENT OF 12.5% AFTER FOLLOWING THE DECISION OF GUJARAT HIGH COURT IN THE CASE OF SIMIT P SHETH. THE CIT(A) OBSERVED THAT SINCE THE AO HAS ACCEPTED CORRESPONDING SALES MADE AGAINST SUCH PURCHASES ONLY PROFIT IS TO BE REQUIRED TO BE ESTIMATED, ACCORDINGLY, HE REASONABLY ESTIMATED PROFIT OF 12.5% AND DELETED BALANCE ADDITION. DETAILED FINDINGS SO RECORDED BY CIT(A) HAVE NOT BEEN CONTROVERTED BY BRINGING ANY POSITIVE MATERIAL ON ITA NO. 3763/MUM/2017 M/S. CMS COMPUTERS LTD., 3 RECORD. ACCORDINGLY, WE DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF CIT(A) IN UPHOLDING ADDITION OF 12.5%. 5. IN THE RESULT, APPEAL OF ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 24 / 09 /201 8 SD/ - ( SAND EEP GOSAIN ) SD/ - (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 24 / 09 /201 8 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//