ACIT-29(1), MUMBAI V. JASMINA SAJAY DOSHI, M

ITA 4026/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2638 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Appeal Filed On: 06-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHINTAMANI DINGANKARLD
• Keywords: Bogus purchase
• Section: 133(6)

Judgement Text

ITA NO.4026/MUM/2019 ASSESSMENT YEAR: 2011-12 1 IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI , , BEFORE HONBLE SHRI SAKTIJIT DEY, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO.4026/MUM/2019 ( / ASSESSMENT YEAR: 2011-12) ACIT - 29(1) R.NO.402, 4 TH FLOOR KAUTILYA BHAVAN, NR. VIDESH BHAVAN BANDRA KURLA COMPLEX BANDRA (E), MUMBAI 400 051 / VS. MS JASMIN A SANJAY DOSHI C-7, NANDANVAN CHS BP CROSS ROAD, MULUND (W) MUMBAI 400 080 PAN/GIR NO. A DPPD - 3896 - D ( '# /APPELLANT ) : ( $%'# / RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : SHRI CHINTAMANI DINGANKAR-LD.SR. DR / DATE OF HEARING : 25/11/2020 / DATE OF PRONOUNCEMENT : 25/11/2020 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AT THE TIME OF HEARING, NONE APPEARED FOR ASSESS EE. HOWEVER, THE MATERIAL ON RECORD WAS SUFFICIENT FOR DISPOSAL OF T HIS APPEAL FILED BY REVENUE. THEREFORE, THE MATTER WAS PROCEEDED WITH F OR DISPOSAL. THE DEPARTMENT IS CHALLENGING THE ACTION OF LD. FIRST A PPELLATE AUTHORITY IN RESTRICTING CERTAIN ADDITION ON ACCOUNT OF ALLEGED BOGUS PURCHASES. ITA NO.4026/MUM/2019 ASSESSMENT YEAR: 2011-12 2 2. THE ASSESSEE WAS SUBJECTED TO REASSESSMENT PROCE EDINGS FOR THE YEAR UNDER CONSIDERATION PURSUANT TO RECEIPT OF CER TAIN INFORMATION FROM DGIT(INV.) THAT THE ASSESSEE ENTERED INTO HAWALA TR ANSACTIONS OF PURCHASES AGGREGATING TO RS.22.69 LACS FROM TWO ENT ITIES. THE DETAILS OF THE SAME HAVE ALREADY BEEN EXTRACTED IN PARA-3 OF T HE ASSESSMENT ORDER DATED 29/01/2016. NOTICES ISSUED U/S 133(6) TO BOTH THE ENTITIES ELICITED NO RESPONSE. THE ASSESSEE FAILED TO PRODUCE ANY OF THE SUPPLIERS TO CONFIRM THE TRANSACTIONS. HOWEVER, THE ASSESSEE SUB MITTED INVOICES, LEDGER ACCOUNTS ALONG WITH COPIES OF BANK STATEMENT EVIDENCING PAYMENT THROUGH BANKING CHANNELS. HOWEVER, OPINING THAT THE PURCHASES WERE NOT VERIFIABLE, LD. AO ESTIMATED ADD ITION OF 12.5% AGAINST THESE PURCHASES. 3. BEFORE LD. FIRST APPELLATE AUTHORITY, THE ASSESS EE, INTER-ALIA, POINTED OUT THAT IT ALREADY OFFERED GROSS PROFIT RATE OF 9. 20% AND THE SALES WERE NOT DOUBTED. ACCEPTING THE SAID PLEA, LD. AO WAS DI RECTED TO GIVE THE BENEFIT OF GP RATE ALREADY OFFERED BY THE ASSESSEE AND RESTRICT THE ADDITIONS TO 3.3% OF SUSPICIOUS PURCHASES. AGGRIEVE D, THE REVENUE IS IN FURTHER APPEAL BEFORE US. 4. UPON DUE CONSIDERATION OF FACTUAL MATRIX AS ENUM ERATED IN PRECEDING PARAGRAPHS, WE FIND NO INFIRMITY IN THE A CTION OF LD. CIT(A) IN GRANTING THE BENEFIT OF GP RATE ALREADY OFFERED BY THE ASSESSEE SINCE MAKING FURTHER ADDITIONS OF 12.5% WOULD ENHANCE THE GP RATE TO ABNORMAL LEVELS OF 21.70%. THEREFORE, FINDING NO SU BSTANCE IN THE APPEAL, WE DISMISS THE SAME. ITA NO.4026/MUM/2019 ASSESSMENT YEAR: 2011-12 3 5. THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED ON 25 TH NOVEMBER, 2020. SD/- SD/- (SAKTIJIT DEY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 25/11/2020 SR.PS:-JAISY VARGHESE '# $# / COPY OF THE ORDER FORWARDED TO : 1. '# / THE APPELLANT 2. $%'# / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. + ,$- , - , / DR, ITAT, MUMBAI 6. , ./0 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.