ACIT - 5(3)(1), MUMBAI V. SCORODITE STAINLESS (INDIA) P. LTD., MUMBAI

ITA 3963/MUM/2017

• Counselvise Citation: [2018] 112 COUNSELVISE.COM (IT) 6026 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2012-2013
• Appeal Filed On: 31-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAJ KUMAR SINGH ITP
• Keywords: Bogus purchase; Peak credit
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES G , MUMBAI BEFORE SHRI RAJESH KUMAR, ACCOUNTANT M EMBER AND SHRI AMA R JIT SINGH, JUDICIAL MEMBER ITA NO. 3963 /MUM/201 7 ASSESSMENT YEAR : 20 12 - 13 DY. COMMISSIONER OF INCOME TAX - 5(3)(1) , MUMBAI VS. M/S. SCORODITE STAINLES S (INDIA) P. LTD., 203 - 204, OMKAR TOWER, 3 RD KHETWAI LANE, SVP ROAD, MUMBAI [PAN : AA BCS 8987 Q ] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUHAS KULKARNI , DR RESPONDENT BY : SHRI RAJ KUMAR SINGH , ITP DATE OF HEARING : 2 7 - 1 2 - 2018 DATE OF PRONOUNCEMENT : 31 - 12 - 201 8 O R D E R PER RAJESH KUMAR, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) - 10 , MUMBAI , DATED 2 3 - 0 2 - 201 7 . 2. THE ISSUE RAISED REVENUE IS AGAINST THE ORDER OF THE CIT(A), DELETING THE ADDITION MADE BY THE AO ON THE BASIS OF PEAK BALANCE CREDIT TO THE TUNE OF RS. 1,93,97,552/ - AND DIRECTING THE AO TO MAKE ADDITION @ 12.5% OF THE BOGUS PURCHASES. ITA NO. 3963 /MUM/ 20 17 : 2 : 3. AT THE OUTSET TH E LD AR POINTED OUT THAT THE CROSS APPEAL BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) IN INSTANT YEAR I.E ITAT 3050/MUM/2017 HAS BEEN DISMISSED BY THE COORDINATE BENCH VIDE ORDER DATED 4.12.2017 UPHOLDING THE ORDER OF CIT(A) IN WHICH CIT(A) DIRECTED THE AO TO MAKE ADDITION @ 12.50% OF THE BOGUS PURCHASES. THE LD AR , THEREFORE, SUBMITTED THAT THE APPEAL OF THE REVENUE ALSO BECOMES INFRU C TUOUS AND HAS TO BE DISMISSED TO WHICH THE LD DR FAIRLY AGREED. 4. AFTER HEARING BOTH THE PARTIES AND CAREFULLY PERUSING THE DECISION OF THE COORDINATE BENCH IN ITA NO. 3050/MUM/2017 , WE OBSERVE THAT THE CROSS ASSESSEE APPEAL AGAINST THE ORDER OF CIT(A) BY THE ASSESSEE HAS BEEN DISMISSED AND THEREFORE THE APPEAL OF THE REVENUE BECOMES INFRUCTUOUS AND IS ACCORDINGLY DISMISS ED. 5 . IN THE RESULT, THE APPEAL OF REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31ST DAY OF DECEMBER, 2018 SD/ - SD/ - (A MARJIT SINGH) (RAJESH KUMAR) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / MUMBAI; / DATED : 31 ST DECEMBER, 2018 TNMM ITA NO. 3963 /MUM/ 20 17 : 3 : / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) , MUMBAI 4. / CIT , MUMBAI 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE / BY ORDER, //TRUE COPY// / (DY./ASST. REGISTRAR) , / ITAT, MUMBAI