ASST CIT 17(1), MUMBAI V. GOLANI BROTHERS, MUMBAI

ITA 3821/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9531 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2011-2012
• Appeal Filed On: 25-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M V RAJGURU
• Keywords: Bogus purchase; Corroborative evidences; Accommodation entries; Revised return
• Section: 143(3); 131

Judgement Text

P A G E | 1 ITA NO. 3821/MUM/2017 M/S GOLANI BROTHERS VS. ACIT IN THE INCOME TAX APPELLATE TRIBUNAL L BENCH, MUMBAI BEFORE SHRI RAJENDRA , AM AND SHRI RAVISH SOOD, JM ./ I.T.A. NO. 3821/MUM/2017 ( / ASSESSMENT YEAR: 2011 - 1 2 ) A CIT - 17(1 ), R. NO. 117 , 1 ST FLOOR, A AYAKAR BHAVAN, M.K. MARG, MUMBAI - 400 02 0 / VS. M/S GOLANI BROTHERS 303, DLAMAL CHAMBERS, 29 NEW MARINE LINES, MUMBAI - 400 020 ./ ./ PAN/GIR NO. AACFG5348R ( / REVENUE ) : ( / ASSESSEE) / REVENUE BY : SHRI M. V. RAJGURU, D.R / ASSESSEE BY : SHRI BHARAT KUMAR, A.R / DATE OF HEARING : 07/09 /2017 / DATE OF PRONOUNCEMENT : 15 /09 /2017 / O R D E R PER RAVISH SOOD, JUDICIAL MEMBER T HE PRESENT APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) - 46, MUMBAI, DATED 23.02.2017 , WHICH IN ITSELF ARISES FROM THE ORDER PASSED BY THE A.O U/S 143(3) OF THE INCOME TAX ACT, 1961 (FOR SHORT ACT), DATED 19.03.2014. THE REVENUE ASSAILING P A G E | 2 ITA NO. 3821/MUM/2017 M/S GOLANI BROTHERS VS. ACIT THE ORDER OF THE CIT(A) HAD RAISED BEFORE US THE FOLLOWING GROUNDS OF APPEAL: - 1. O N THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) HAS ERRED IN HOLDING THAT THE DISCLOSURE ON THE PART OF THE ASSESSEE WAS NOT ON ACCOUNT OF BOGUS PURCHASES BUT TO TAKE CARE OF DISCREPANCIES IN SUCH PURCHASES AND IN FURTHER DIR ECTING TO DELETE THE DISALLOWANCE OF RS. 40,96,158/ - BEING 50% OF SUCH PURCHASES FROM M/S THANE STEEL WHICH WERE HELD TO BE BOGUS IN THE ASSESSMENT ORDER IN ADDITION TO THE AMOUNT OF BOGUS PURCHASES SURRENDERED BY THE ASSESSEE DURING THE COURSE OF SURVEY A CTION ON 19.03. 2013, WITHOUT APPRECIATING THE FACTS THAT : - (I) DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE FAILED TO DISCHARGE ITS ONUS OF PROVING THE GENUINENESS OF THE SO CALLED PURCHASES FROM M/S THANE STEEL, IN THAT THE ASSESSEE COULD NOT PR ODUCE THE TEST CERTIFICATES, DELIVERY CHALLANS, PURCHASE ORDERS, DETAILS OF STOCK PURCHASES CONSUMPTION, AND RECEIPT /DESPATCH OF MATERIAL PURCHASED RECORD OF CONSUMPTIO N , ETC IN RESPECT OF ITS SO - CALLED PURCHASES MADE FROM M/S THANE STEELS TO SUBSTANTIATE ITS CLAIM OF THE SAID PURCHASE. (II) THE SAID VENDOR PARTY VIZ. M/S THANE STEEL IN THEIR STATEMENT RECORDED ON OATH HAVE UNAMBIGUOUSLY ADMITTED TO THE FACT THAT THEY ARE INDULGING IN PROVIDING ACCOMMODATION ENTRIES IN THE FORM OF BOGUS PURCHASE BILLS WITHOUT AFFECTING ANY DELIVERY OF GOODS. (III) THE HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS. LA MEDICA, 250 I TR 575, HAS HELD THAT IN SIMILAR CIRCUMSTANCES, THE BOGUS PURCHASE ARE TO BE DISALLOWED IN THEIR ENTIRELY. AS SUCH THE DISALLOWANCE OF THE BOGUS PURCHASES MADE FROM M/S THANE STEELS SHOULD HAVE BEEN UPHELD IN ITS ENTIRETY BY THE LD. CIT(A). 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ORDER OF ID. CIT(A) IS PERVERSE AND DESERVES TO BE CANCELLED. 3. THE APPELLANT PRAYS THAT THE ORDER OF THE A.O SHOULD BE RESTORED AND ORDER OF THE LD. CIT(A) SHOULD BE SET ASIDE. 4. THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GROUND OR ADD A NEW GROUND WHICH MAY BE NECESSARY. 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSEE WHICH IS A GOVERNMENT APPROVED CONTRACTOR, BUILDER, DEVELOPER, HAD FILED ITS RETURN OF INCOME ON 29.09.2011 SHOWING TOTAL INCOME OF RS.1,50,61,430/ - . SUBSEQUENTLY, THE ASSESSEE FILED A REVISED RETURN OF INCOME ON 30.03.2013 , DECLARING TOTAL INCOME OF RS. 1,91,5 7,582/ - . P A G E | 3 ITA NO. 3821/MUM/2017 M/S GOLANI BROTHERS VS. ACIT THE CASE OF THE ASSESSEE WAS THEREAFTER SELECTED FOR SCRUTINY ASSESSMENT U/S. 143(2). 3. THAT CERTAIN INQUIRY PROCEEDINGS U/S. 131 OF THE A CT WERE CONDUCTED IN THE CASE OF THE ASSESSEE FIRM BY THE INVESTIGATION WING OF THE DEPARTMENT. THAT ON T HE BASIS OF VARIOUS DOCUMENTS THAT WERE IMPOUNDED DURING THE COURSE OF THE PROCEEDINGS U/S. 131, IT TRANSPIRED THAT THE ASSESSEE FIRM HAD OBTAINED BOGUS PURCHASE BILLS IN THE NAME OF M/S THANE STEEL PVT. LTD. TO THE EXTENT OF RS. 81,92,315/ - DURING THE YEA R UNDER CONSIDERATION . THAT THE PARTNER OF THE ASSESSES FIRM , VIZ. SHRI KISHORE GOLANI IN HIS STATEMENT RECORDED ON OATH ON 19.03.2013 ACCEPTED THAT THE ASSESSEE FIRM DID NOT HAVE ENOUGH SUPPORTING EVIDENCE LIKE DELIVERY CHALLANS, TEST CERTIFICATE, PURCHASE ORDER S ETC. TO PROVE THE GENUINENESS OF PURCHASE S WHICH WERE CLAIMED TO HAVE BEEN MADE FROM THE AFORESAID PARTY. THAT SHRI. KISHORE GOLANI IN HIS STATEMENT AGREED TO REVISE THE RETURN OF INCOME AND PAY TAX ON 50% OF THE PURCHASE S WHICH WERE MADE FROM THE AFORESAID CONCERN, VIZ. M/S THANE STEEL PVT. LTD., AS WELL AS CERTAIN OTHER CONCERNS 4. THAT DURING THE COURSE OF THE ASSESSMENT PR OCEEDINGS THE A.O CALLED UPON THE ASSESSEE TO EXPLAIN AS TO WHY THE ENTIRE AMOUNT OF PURCHASE S CLAIMED TO HAVE BEEN MADE FROM M/S THANE STEEL PVT. LTD., IN THE ABSENCE OF SUPPORTING DOCUMENTARY EVIDENCE, VIZ. DELIVERY CHALLANS, TEST CERTIFICATE, PURCHASE O RDER S ETC. MAY THEREIN NOT BE DISALLOWED FROM THE TOTAL PURCHASE DEBITED IN THE PROFIT AND LOSS ACCOUNT. THE ASSESSEE WAS ALSO DIRECTED TO PROVIDE QUANTITATIVE DETAILS OF THE OPENING STOCK, PURCHASES, CONSUMPTION AND CLOSING STOCK OF EACH MATERIAL PURCHA SE D , AS WELL AS PRODUCE THE RECORDS RELATING TO RECEIPT AND D E SPATCH OF MATERIAL PURCHASED ALONGWITH THE RECORD OF CONSUMPTION OF MATERIAL PURCHASED. THE ASSESSEE IN ITS REPLY P A G E | 4 ITA NO. 3821/MUM/2017 M/S GOLANI BROTHERS VS. ACIT SUBMITTED THAT THOUGH ALL ITS PURCHASES WERE GENUINE, BUT HOWEVER , IN ORDER TO AVOID LITIGATION AND BUY PEACE OF MIND IT HAD OFFER E D 50% OF T HE PURCHASES MADE FROM M/S THANE STEEL PVT. LTD., AMOUNTING TO RS. 40,96,157/ - AS INCOME IN THE REVISED RETURN OF INCOME. HOWEVER, THE ASSESSEE FAILED TO PRODUCE THE ENTIRE DOCUMENT ARY EVIDENCE AS WERE CALLED FOR BY THE A.O TO SUPPORT THE GENUINENESS OF THE PURCHASE TRANSACTIONS . 5. THAT DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS THE A.O OBSERVED THAT AS PER THE INFORMATION RECEIVED THE ASSESSEE HAD OBTAINED BOGUS BILLS IN THE NAME OF M/S THANE STEEL PVT. LTD. IT WAS FURTHER OBSERVED BY THE A.O THAT THE PROVIDER OF THE ACCOMMODATION BILLS HAD IN HIS STATEMENT RECORDED ON OATH CLAIMED THAT THE BILLS OF M/S THANE STEEL PVT. LTD. IN FAVOUR OF THE ASSESSEE FIRM WERE MERELY ACCOMMODA TION BILLS WITHOUT ACTUAL DELIVERY OF GOODS. IT WAS OBSERVED BY THE A.O THAT THE ACCOMMODATION ENTRY PROVIDER HAD CONFIRMED ON OATH THAT THEY HAD SOLD THE GOODS TO SOME OTHER PARTIES, BUT HOWEVER HAD PROVIDED THE ACCOMMODATION ENTRIES TO THE BENEFICIARIES AFTER DEDUCTING THEIR COMMISSION. THE A.O IN THE BACKDROP OF THE AFORESAID FACT S BEING OF THE VIEW THAT AS THE ASSESSEE HAD FAILED TO SUBSTANTIATE THE GENUINENESS AND VERACITY OF THE PURCHASES CLAIMED TO HAVE BEEN MADE FROM M/S THANE STEEL PVT. LTD. , AND D ESPITE BEING AFFORDED SUFFICIENT OPPORTUNITY COULD NOT PROVE THE CONSUMPTION OF THE MATERIAL IN ITS BUSINESS, THEREFORE, TREATED THE SAME AS BOGUS PURCHASES AND DISALLOWED THE PURCHASES TO THE SAID EXTENT. IT WAS OBSERVED BY THE A.O THAT AS THE ASSESSEE HA D ALREADY ADDED BACK AN AMOUNT OF RS.4 0 ,96 , 157/ - (I.E. 50% OF THE PURCHASES MADE FROM M/S THANE STEEL PVT . LTD.) BY FILING THE REVISED RETURN OF INCOME ON 30.03.2013, THEREFORE, IN THE BACKDROP OF THE SAID FACTUAL POSITION, HE DISALLOWED THE BALANCE AMOUNT OF PURCHASES OF RS.40,96,158/ - . THE ASSESSEE P A G E | 5 ITA NO. 3821/MUM/2017 M/S GOLANI BROTHERS VS. ACIT BEING AGGRIEVED WITH THE ORDER OF THE A.O CARRIED THE MATTER IN APPEAL BEFORE THE CIT(A). THE CIT(A) DELIBERATING ON THE CONTENTION OF THE ASSESSEE IN THE BACKDROP OF THE FACTS OF THE CASE OBSERVED THAT THE PAR TNER OF THE ASSESSEE FIRM, VIZ. SHRI KISHORE GOLANI WHOSE STATEMENT WAS RECORDED ON 19.03.2013 WAS AN ENGINEER WHO WAS EARLIER LOOKING AFTER THE TECHNICAL ASPECTS OF THE CONSTRUCTION BUSINESS OF THE ASSESSEE FIRM. IT WAS OBSERVED BY THE CIT(A) THAT PURCH ASES AND PROCUREMENT OF GOODS BY THE ASSESSEE FIRM WERE EARLIER BEING LOOKED AFTER BY THE FOUND ER PARTNER OF THE ASSESSEE FIRM, VIZ. SHRI N.D. GOLANI, WHO HOWEVER EXPIRED ON 17.02.2011 , AND THEREAFTER THE SAID PURCHASE AND PROCUREMENT OF GO OD S REMAINED UNDER THE SUPERVISION OF SHRI. B.D. GOLANI , WHO TO O PASSED AWAY ON 18.09.2011. THE CIT(A) OBSERVED THAT SHRI KISHORE GOLANI WHO THOUGH WAS INITIALLY LOOKING AFTER THE EXECUTION OF THE PROJECT WORK, HOWEVER, IN THE BACKDROP OF THE AFORESAID COMPEL LING CIRCUMSTANCES WAS ALSO LOOKING AFTER THE P URCHASE AND PROCUREMENT OF GOODS BY THE ASSESSEE FIRM AT THE RELEVANT POINT OF TIME WHEN HIS STATEMENT WAS RECORDED ON 19.03.2013. THE CIT(A) FURTHER OBSERVED THAT THOUGH THE ASSESSEE HAD DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS FILED CONFIRMATION OF ACCOUNT , TAX INVOICE RECEI PTS FROM M/S THANE STEEL PVT. LTD AND THE COPY OF THE STOCK EXTRACT, HOWEVER , THE A.O DISALLOWED THE ENTIRE PURCHASES ON THE GROUND THAT THE PROVIDER OF ACCOMMODATION BILLS OF M/S THANE STEELS PVT. LTD. HHAD IN HIS STATEMENT RECORDED ON OATH, HAD STATED THAT ONLY ACCOMMODATION BILLS WERE PROVIDED TO THE ASSESSEE FIRM AND NO GENUINE TRANSACTIONS WERE CARRIED OUT WITH THE ASSESSEE FIRM . IT WAS OBSERVED BY THE CIT(A) THAT AS SHRI KISHORE GOLANI, THE PARTNER OF THE ASSESSEE FIRM HAD OBSERVED THAT THERE WERE CERTAIN DISCREPANCIES IN RESPECT OF THE DOCUMENTS PERTAINING TO PURCHASE S MADE FROM M/S THANE STEEL PVT. LTD., HE THUS FOR THE SAID REASON HAD OFFERED 50% OF PURCHASES MADE FROM THE SAID CONCERN AS P A G E | 6 ITA NO. 3821/MUM/2017 M/S GOLANI BROTHERS VS. ACIT THE ADDITIONAL INCOME OF THE ASSESSEE FIRM FOR THE YEAR UNDER CONSIDERATION. 6. THAT IT WAS SUBMITTED BEFORE THE CIT(A) THAT THE ASSESSEE FIRM HAD OFFERED 50% OF THE PURCHASES AS ITS ADDITIONAL INCOME ON THE SAME FOOTING FOR AY: 2007 - 08, AY: 2008 - 09, AY: 2009 - 10 AND AY: 2010 - 11. IT WAS SUBMITTED BY THE ASSESSEE THAT THE ADDITIONAL INCOME WHICH WAS OFFERED IN THE AFORESAID ASSESSMENT YEARS WAS THEREAFTER ACCEPTED BY THE DEPARTMENT IN THE RESPECTIVE ASSESSMENT S FRAMED IN THE HANDS OF T HE ASSESSEE U/S 143(3) R.W.S 147 OF THE ACT , AS UNDER: - AY SECTION ADDITION REVISED INCOME ASSESSED AT 2007 - 08 143(3) RWS 147 6211414 (TOTAL 19674259) 19674254 2008 - 09 143(3)RWS 147 1302706 (TOTAL 31958666) 31958666 2009 - 10 143(3)RWS 147 7096833 (TOTAL 18159804) - 2010 - 11 143(3) RWS. 147 9342548 (TOTAL 22947180) 22947180 THAT IN THE BACKDROP OF THE AFORESAID FACTS, IT WAS SUBMITTED BY THE LD. A.R THAT IT WAS NOT PERMISSIBLE ON THE PART OF THE A.O TO HAVE ACCEPTED THE CLAIM OF THE ASSESSEE AND RESTRICTED THE DISALLOWANCE OF PURCHASES AT 50% OF THE PURCHASES MADE FROM M/S THANE STEEL PVT. LTD. IN A.Y: 2007 - 08 TO AY: 2010 - 11, WHILE FOR ON THE BASIS OF THE SAME SET OF FACTS AND CIRCUMSTANCES THEREIN ADVERTED T O AN ABSOLUTELY INCONSISTENT VIEW AND DISALLOWED THE ENTIRE PURCHASE S MADE BY THE ASSESSEE FIRM FROM THE SAID PARTY DURING THE YEAR UNDER CONSIDERATION. IT WAS SUBMITTED BY THE ASSESSEE THAT IT HAD CAME UP WITH THE OFFER OF THE ADDITIONAL INCOME IN RESPECT OF THE PURCHASES MADE FROM M/S THANE STEEL PVT. P A G E | 7 ITA NO. 3821/MUM/2017 M/S GOLANI BROTHERS VS. ACIT LTD., NOT BECAUSE THE PURCHASES WERE NOT GENUINE, BUT FOR THE REASON THAT THERE WERE DISCREPANCIES IN RESPECT OF THE DOCUMENTS PERTAINING TO THE SAID PURCHASE TRANSACTIONS. IT WAS FURTHER SUBMITTED THAT THE STATEMENT OF M/S THANE STEEL PVT. LTD. WHICH WAS STRONGLY RELIED UPON BY THE A.O WAS NEVER PROVIDED TO THE ASSESSEE. 7. THE CIT(A) AFTER DELIBERATING ON THE AFORESAID CONTENTIONS OF THE ASSESSEE IN THE BACKDROP OF THE FACTS OF THE CASE OBSERVED THAT IT REMAIN ED AS A MATTER OF FACT THAT THERE WAS NO BASIS TO CHARACTERIZE THE ENTIRE PURCHASE MADE BY THE ASSESSEE FROM M/S THANE STEEL PVT. LTD. AS BOGUS. THE CIT(A) THUS ON THE BASIS OF HER AFORESAID OBSERVATIONS CONCLUDED THAT THE FURTHER ADDITION OF 50% OF THE PURCHASES CLAIMED BY THE ASSESSEE TO HAVE BEEN MADE FROM M/S THANE STEEL PVT. LTD. COULD NOT BE SUSTAINED AND WERE LIABLE TO BE DELETED. THE CIT(A) OBSERVED THAT THE TRIBUNAL WHIL E DISPOSING OF THE APPEALS OF THE ASSESSEE AGAINST THE LEVY OF PENALTY U/S 271(1)(C) FOR THE A.Y. 2007 - 08 TO AY: 2010 - 11 HAD CONCLUDED THAT THE ASSESSEE HAD OFFERED 50% OF THE PURCHASES MADE FROM M/S THANE STEEL PVT. LTD. A ND CERTAIN OTHER CONCERNS AS ITS INCOME, NOT FOR THE REASON THAT THE SAME WERE BOGUS PURCHASES , BUT ONLY FOR THE REASON THAT THERE WERE CERTAIN DISCREPANCIES IN THE DOCUMENTATION PERTAINING TO THE PURCHASES MADE FROM THE SAID PARTIES , WHICH THE PARTNER ATTENDING TO THE BUSINESS OF THE ASSESSEE FIRM, VIZ. SH. KISHOR GOLANI COULD NOT RECONCILE. 8. T HAT DURING THE COURSE OF THE HEARING OF THE APPEAL THE LD. DEPARTMENTAL REPRESENTATIVE (FOR SHORT D.R ) RELIED ON THE ORDER OF THE A.O AND AVERRED THAT THE CIT(A) HAD ERRED IN RESTRICTING THE ADDITION TO 50% OF THE BOGUS PURCHASES MADE BY THE ASSESSEE FRO M M/S THANE STEEL PVT. LTD. PER CONTRA, THE LD. A.R RELIED ON THE ORDER OF THE CIT(A). P A G E | 8 ITA NO. 3821/MUM/2017 M/S GOLANI BROTHERS VS. ACIT 9. WE HAVE HEARD THE AUTHORIZED REPRESENTATIVES OF BOTH THE PARTIES, PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND THE MATERIAL AVAILABLE ON RECORD. WE HAVE GIVEN A T HOUGHTFUL CONSIDERATION TO THE FACTS OF THE CASE AND ARE OF THE CONSIDERED VIEW THAT IT REMAINS AS A MATTER OF FACT THAT THE PARTNER OF THE ASSESSEE FIRM , VIZ. SHRI KISHORE GOLANI WAS AN ENGINEER LOOKING AFTER THE CONSTRUCTION BUSINESS OF THE ASSESSEE CONC ERN, AND IT WAS ONLY PURSUANT TO THE UNFORTUNATE CONSECUTIVE DEATH S OF HIS UNCLE S S/SH. N.D. GOLANI AND B.D. GOLANI IN THE YEAR 2011 , THAT HE WAS THEREAFTER LOOKING AFTER THE PURCHASE AND PROCUREMENT OF GOODS BY THE ASSESSEE FIRM . WE HAVE DELIBERATED ON THE FACTS AVAILABLE ON RECORD AND ARE OF THE CONSIDERED VIEW THAT THE ASSESSEE FIRM HAD OFFERED 50% OF THE PURCHASES MADE FROM M/S THANE STEEL PVT. LTD., FOR THE REASON THAT THERE WERE CERTAIN DISCREPANCIES IN THE DOCUMENT S PERTAINI NG TO THE PURCHASE TRANSACTIONS. WE FIND THAT NO CONCLUSIVE AND CLINCHING EVIDENCE HAD BEEN PLACED ON RECORD BY THE REVENUE TO ESTABLISH THAT THE PURCHASES MADE BY THE ASSESSEE IN ITSELF WERE FOUND TO BE BOGUS BEYOND DOUBT , OR THAT THE GOODS CLAIMED BY THE ASSESSEE TO HAVE BEEN PURCHASE D FROM THE SAID CONCERN HAD NOT BEEN CONSUMED IN THE BUSINESS OF THE ASSESSEE FIRM. WE HAD FURTHER OBSERVED THAT SHRI . KISHORE GOLANI (SUPRA) HAD IN HIS STATEMENT ALSO OFFERED FOR DISALLOWANCE 50% OF THE PURCHASES FOR CERTAI N OTHER YEARS IN THE HANDS OF THE ASSESSEE FIRM, VIZ. A.Y. 2007 - 08 TO AY: 2010 - 11, WHICH THEREAFTER HAD BEEN ACCEPTED BY THE DEPARTMENT IN THE RESPECTIVE ASSESSMENTS FRAMED U/S 147 R.W.S 143(3). WE FIND IT BEYOND OUR COMPREHENSION THAT NOW WHEN UNDER THE S AME SET OF FACTS AND CIRCUMSTANCES THE A.O HAD ACCEPTED THE STATEMENT OF THE ASSESSEE AND RESTRICTED THE DISALLOWANCE OF PURCHASE S MADE BY THE ASSESSEE FROM M/S THANE STEEL PVT. LTD. TO 50%, THEN HOW A DIFFERENT APPROACH COULD HAVE BEEN ADOPTED AND THE DIS ALLOWANCE OF THE ENTIRE PURCHASES MADE FROM THE SAID CONCERN DURING THE YEAR UNDER CONSIDERATION COULD P A G E | 9 ITA NO. 3821/MUM/2017 M/S GOLANI BROTHERS VS. ACIT BE JUSTIFIED. WE FURTHER FIND THAT A COORDINATE BENCH OF THE TRIBUNAL, VIZ. ITAT G BENCH, MUMBAI, VIDE ITS ORDER DATED 21.10.2016, PASSED IN ITA NO. 45 93 TO 4596/MUM/2016, PERTAINING TO A.Y. 2007 - 08 TO AY: 2010 - 11 WHILE DISPOSING OF THE AFORESAID APPEALS OF THE ASSESSEE IN RESPECT OF PENALTY IMPOSED U/S. 271(1)(C) , HAD IN THE SAID RESPECTIVE ORDERS C ATEGORICALLY OBSERVED THAT THE ASSESSEE HAD NOT OFFERED THE ADDITIONAL INCOME IN RESPECT OF THE PURCHASES MADE FROM M/S THANE STEEL PVT. LTD. , NOT FOR THE REASON THAT THE SAME WERE IRREBUTABLY PROVED TO BE BOGUS TRANSACTIONS, BUT ONLY FOR THE REASON THAT THERE WERE CERTAIN DISCREPANCIES IN THE DOCUMENTATION P ERTAINING TO THE PURCHASES MADE BY THE ASSESSEE FROM THE SAID SUPPLIER PARTY, WHICH THE PARTNER OF THE ASSESSEE FIRM, VIZ. SHRI. KISHORE GOLANI NOT BEING CONVERSANT WITH, HAD THUS OFFERED AS THE INCOME OF THE ASSESSEE FIRM IN ORDER TO PURCHASE PEACE OF MIN D AND AVOID LITIGATION. 10. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE FACTS OF THE CASE AND ARE OF THE CONSIDERED VIEW THAT IN THE BACKDROP OF OUR AFORESAID OBSERVATIONS AS WELL AS THE FINDINGS OF THE COORDINATE BENCH OF THE TRIBUNAL AS REGARDS THE PURCHASES MADE BY THE ASSESSEE FIRM FROM M/S THANE STEEL PVT. LTD, AND OFFER OF 50% OF THE PURCHASES MADE FROM THE SAID CONCERN, VIZ. M/S THANE STEEL PVT. LTD. AND CERTAIN OTHER SUPPLIER PARTIES AS ADDITIONAL INCOME, ON THE BASIS OF THE SAME FACTS AND CIR CUMSTANCES AS WERE INVOLVED IN THE YEAR UNDER CONSIDERATION BEFORE US , VIZ. A.Y. 2011 - 12 , WE ARE UNABLE TO SUBSCRIBE TO THE FINDINGS OF THE A.O, WHO WE FIND HAD ADOPTED AN INCONSISTENT APPROACH AND DISALLOWED THE ENTIRE PURCHASES MADE BY THE ASSESSEE FROM M/S THANE STEEL PVT. LTD. DURING THE YEAR UNDER CONSIDERATION. WE THUS FIND ING NO REASON TO DISLODGE THE WELL REASONED ORDER OF THE CIT(A) , THEREFORE, U PHOLD THE SAME. THE G ROUND OF THE APPEAL NO. 1 TO 3 ARE DISMISSED. P A G E | 10 ITA NO. 3821/MUM/2017 M/S GOLANI BROTHERS VS. ACIT 11. THE G ROUND OF APPEAL NO. 4 BEING GENERAL IS DISMISSED , AS NOT PRESSED. 12. THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15. 0 9. 2017 SD/ - SD/ - ( RAJENDRA ) ( RAVISH SOOD ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI , DATED 15. 0 9. 2017 P S . ROHIT KUMAR COPY OF THE ORDER FORWARDED T O : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A) - 52 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE . BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI P A G E | 11 ITA NO. 3821/MUM/2017 M/S GOLANI BROTHERS VS. ACIT