VEGA JEWELLERY, MUMBAI V. ITO 19(3)(5), MUMBAI

ITA 3794/MUM/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9194 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2009-2010
• Appeal Filed On: 24-05-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: USHA GAIKWADLD
• Assessee Lawyers: BHARAT SHAH LD
• Keywords: Bogus purchase
• Section: 143(3)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, VP AND HONBLE SHRI MANOJ KUM AR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) 1 . ./ I.T.A. NO. 3794 / MUM/ 2017 ( / ASSESSMENT YEAR: 2009 - 10 ) M/S VEGA JEWELLERY 101, SHREEJI DARSHAN TATA ROAD, 1 & 2, OPERA HOUSE MUMBAI - 400 004 / VS. ITO - 19(3)(5), MUMBAI ./ ./ PAN/GIR NO. A A E FV - 2026 - M ( / APPELLANT ) : ( / RESPONDENT ) ASSESSEE BY : SHRI BHARAT SHAH LD. AR REVENUE BY : MS. USHA GAIKWAD , LD. SR. DR / DATE OF HEARING : 03/08 /2021 / D ATE OF PRONOUNCEMENT : 03/08/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. DURING HEARING OF THE APPEAL, LD. AR SUBMITTED THAT ONLY ISSUE THAT ARISES UNDER THE APPEAL IS ESTIMATED ADDITION ON ACCOUNT OF ALLEGED BOGUS PURCHASES. THE L D. AR, DRAWING ATTENTION TO THE FACTS OF THE CASES, SUBMITTED THAT ESTIMATION OF 3% AS MADE BY LEARNED CIT(APPEALS) 30, MUMBAI IN ORDER DATED 20/03/2017 IS ON THE HIGHER SIDE. NO OTHER GROUND WAS URGED BY LD. AR. THE LD. DR PLEADED FOR DISMISSAL OF APPEAL. 2 2. WE FIND THAT WHILE FRAMING AN ASSESSMENT U/S 143(3) R.W.S. 147 ON 30/03/2015, THE ASSESSEE WAS SADDLED WITH ESTIMATED ADDITIONS OF 8% ON PURCHASES OF RS.266.98 LACS STATED TO BE MADE BY ASSESSEE FROM 4 SUSPICIOUS ENTITIES OF SHRI BHANWARLAL JAIN GROUP AS DETAILED IN THE ASSESSMENT ORDER. BASED ON INVESTIGATION FINDINGS, IT WAS CONCLUDED THAT THE ASSESSEE MERELY OBTAINED BILLS FROM THESE ENTITIES WHEREAS ACTUAL PURCHASES WERE MADE FROM GREY MARKET. FINALLY, LD. AO ESTIMATED ADDITIONS OF 8% TO PLUG THE LE AKAGE OF REVENUE. 3. UPON FURTHER APPEAL, LD. CIT(A), CONSIDERING THE FACTUAL MATRIX AND IN THE BACKGROUND OF VARIOUS JUDICIAL PRONOUNCEMENTS, RESTRICTED THE ADDITIONS TO 3%. STILL AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 4. UPON PERUSAL OF IMPUGNED ORDER, WE FIND THAT ESTIMATION AS MADE BY LD. CIT(A) IS VERY FAIR AND REASONABLE. THE SAME COULD NOT BE INTERFERED CONSIDERING THE FACTUAL MATRIX OF THE CASE. WE ORDER SO. 5. THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED ON 03 RD AUGUST, 2021. SD/ - SD/ - (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI; DATED : 03/08/2021 SR.PS, DHANANJAY / 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 3 / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.