KRASNY DEFENCE TECHNOLOGIES P. LTD, NAVI MUMBAI V. DCIT 15(2)(2), MUMBAI

ITA 3913/MUM/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4489 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 29-05-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: PRAKASH K JOTWANI
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL K BENCH, MUMBAI BEFORE S/ SHRI B.R.BASKARAN (AM) & AMARJIT SINGH (JM) I.T.A. NO. 3913 /MUM /20 1 7 (ASSESSMENT YEAR 20 12 - 13 ) M/S. KRASNY DEFENCE TECHNOLOGIES PVT. LTD. (EARLIER KNOWN AS KRASNY MARINE SERVICES PVT. LTD .) 12 TH FLOOR, GREAT EASTERN SUMMIT - B, PLOT NO. 66, SECTOR - 15, CBD BELAPUR NAVI MUMBAI - 400 614. PAN : AACK6125D VS. DCIT 15(2)(2) AAYAKAR BHAVAN 4 TH FLOOR M.K. ROAD MUMBAI - 400020. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY SHRI PRAKASH K. JOTWANI DEPARTMENT BY SHRI MANOJ KUMAR DATE OF HEARING 0 1 . 8 . 201 8 DATE OF PRONOUNCEMENT 0 1 . 8 . 201 8 O R D E R PER B.R. BASKARAN (A M) : - THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 10.1.2017 PASSED BY THE LEARNED CIT(A) - 24, MUMBAI AN D IT RELATES TO A.Y. 2011 - 12. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF THE LEARNED CIT(A) IN SUSTAINING THE ADDITION TO THE EXTENT OF 43.15% OF THE VALUE OF BOGUS PURCHASES. 2. LEARNED COUNSEL APPEARING FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF SHIP REPAIRING AND MARINE SERVICES. HE SUBMITTED THAT THE ASSESSMENT OF THE YEAR UNDER CONSIDERATION WAS REOPENED ON THE BASIS OF INFORMATION RECEIVED FROM THE SALES TAX DEPARTMENT THAT THE ASSESSEE HAS TAKEN ACCOMMODATION BILLS FROM HAWALA PARTIES, WITHOUT ACTUALLY PURCHASING GOODS. VALUE OF PURCHASES SO MADE WAS MENTIONED AS ` 29.20 LAKHS BY THE ASSESSING OFFICER. IN THE ASSESSMENT ORDER, THE ASSESSING OFFICER DISALLOWED THE ABOVE SAID AMOUNT OF ` 29.20 LAKHS. IN THE APPELLATE P ROCEEDINGS, THE LEARNED CIT(A) SUSTAINED THE ADDITION TO THE EXTENT OF 43.15%. M/S. KRAS NY DEFENCE TECHNOLOGIES PVT. LTD . 2 3. LEARNED AR SUBMITTED THAT AN IDENTICAL ADDITION WAS MADE IN THE ASSESSEES OWN CASE IN A.Y. 2009 - 10 AND THE TRIBUNAL, VIDE ITS ORDER DATED 7.5.2018 IN ITA NO. 898/MUM/2016 HA S SUSTAINED THE ADDITION TO THE EXTENT OF 8% OF THE VALUE OF ALLEGED BOGUS PURCHASES. ACCORDINGLY, HE SUBMITTED THAT THE ADDITION IN THE INSTANT YEAR MAY ALSO BE SUSTAINED TO THE EXTENT OF 8% OF THE VALUE OF BOGUS PURCHASES. 4. WE HEARD LEARNED DR AND PER USED THE RECORD. WE NOTICED THAT THE TRIBUNAL, ON IDENTICAL SET OF FACTS, HAS SUSTAINED THE ADDITION TO THE EXTENT OF 8% OF THE VALUE OF BOGUS PURCHASES IN ASSESSEES OWN CASE IN A.Y. 2009 - 10 (REFERRED SUPRA). FOLLOWING THE SAME, WE MODIFY THE ORDER PASSED BY THE LEARNED CIT(A) ON THIS ISSUE AND DIRECT THE ASSESSING OFFICER TO RESTRICT THE ADDITION TO THE EXTENT OF 8% OF THE VALUE OF BOGUS PURCHASES. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER HAS BE E N PRONOUNCED IN THE COURT ON 0 1 . 8 .201 8 . SD/ - SD/ - (AMARJIT SINGH ) ( B.R. BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 0 1 / 8 / 20 1 8 COPY O F THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( SENIOR PRIVATE SECRETARY ) PS ITAT, MUMBAI