SHRI. PANKAJ KAPURCHAND SANGHAVI, MUMBAI V. ITO 17(2)(5), MUMBAI

ITA 415/MUM/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0629 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-03-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 29-01-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Bogus purchase
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI , ! BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . ITA NO.415/MUM/2019(A.Y.2009-10) SHRI PANKAJ KAPURCHAND SANGHAVI, ROOM NO.18,44, NAGDEVI STREET, MANDVI, MANDVI, MUMBAI 400 003 PAN: AIJPS 7241Q ...... # / APPELLANT VS. ITO WARD 17(2)(5), MUMBAI ..... &'/ RESPONDENT #(/ APPELLANT BY : NONE &'(/ RESPONDENT BY : SHRI R. BHOOPATHI )' / DATE OF HEARING : 23/01/2020 * )' / DATE OF PRONOUNCEMENT : 17/03/2020 / ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-58, MUMBAI (IN SHORT THE CIT(A) ) DATED 30/11/2018 FOR THE ASSESSMENT YEAR 2009-10. 2. NOTICE OF THE APPEAL WAS SENT TO THE ASSESSEE T HROUGH RPAD. THE ACKNOWLEDGMENT OF THE NOTICE AVAILABLE ON RECORD SHOWS THAT THE NOTICE WAS SERVED ON THE ASSESSEE ON 12/12/2019. DESPITE SERV ICE OF NOTICE, NONE 2 . ITA NO.415/MUM/2019(A.Y.2009-10 APPEARED ON BEHALF OF THE ASSESSEE, NOR ANY REQUEST FOR ADJOURNMENT HAS BEEN RECEIVED. IT APPEARS THAT THE ASSESSEE IS NOT KEEN TO PURSUE HIS APPEAL. THEREFORE, THE APPEAL IS TAKE UP ADJUDICATION WITH THE ASSISTANCE OF LD.DEPARTMENTAL REPRESENTATIVE AND THE MATERIAL AVA ILABLE ON RECORD. 3. THE ASSESSEE IS ENGAGED IN TRADING OF HARDWARE G OODS. THE ASSESSEE FILED HIS RETURN OF INCOME FOR THE IMPUGNED ASSESSM ENT YEAR DECLARING TOTAL INCOME OF RS.4,89,920/-. ON THE BASIS OF INFORMATI ON RECEIVED FROM INVESTIGATION WING OF THE DEPARTMENT, THE ASSESSING OFFICER REOPENED THE ASSESSMENT ON THE GROUND THAT ASSESSEE HAS OBTAINED BOGUS PURCHASE BILLS TO THE TUNE OF 35,18,648/- FROM HAWALA DEALERS. THE A SSESSING OFFICER AFTER EXAMINING THE DOCUMENTS AND SUBMISSIONS OF THE ASSE SSEE ESTIMATED GP @ 16.41% AS AGAINST THE GP OF 10.10% DECLARED BY THE ASSESSEE IN THE IMPUGNED ASSESSMENT YEAR. AGGRIEVED, AGAINST THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 19 61 ( IN SHORT THE ACT) ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A ) AFTER EXAMINING THE FACTS RESTRICTED THE DISALLOWANCE OF BOGUS PURCHASES TO 8 .5%. STILL AGGRIEVED, THE ASSESSEE IS IN SECOND APPEAL BEFORE THE TRIBUNAL. 4. SHRI R. BHOOPATHI, REPRESENTING THE DEPARTMENT V EHEMENTLY DEFENDED THE IMPUGNED ORDER. THE LD.DEPARTMENTAL REPRESENTA TIVE SUBMITTED THAT THE ASSESSEE HAD MADE BOGUS PURCHASES FROM THE DECLARED HAWALA DEALERS. THE ASSESSING OFFICER WAS QUITE CONSIDERATE IN ESTIMATI NG GP BY TAKING AVERAGE OF THE THREE ASSESSMENT YEARS INCLUDING THE ASSESSMENT YEAR UNDER APPEAL AND TWO PRECEDING ASSESSMENT YEARS. HOWEVER, THE CIT( A) FURTHER REDUCED IT TO 8.5%. 3 . ITA NO.415/MUM/2019(A.Y.2009-10 5. I HAVE HEARD THE SUBMISSIONS MADE BY LD.DEPARTME NTAL REPRESENTATIVE AND HAVE EXAMINED THE MATERIAL AVAILABLE ON RECORD. THE ASSESSEE IS A TRADER IN HARDWARE. THE ASSESSEE PURPORTEDLY OBTAINED BOG US PURCHASE BILLS FROM THE HAWALA DEALERS. THE ASSESSING OFFICER MADE DIS ALLOWANCE OF ALLEGED BOGUS PURCHASES BY COMPUTING AVERAGE GP OF THE THREE ASSE SSMENT YEARS I.E. THE ASSESSMENT YEAR UNDER APPEAL AS WELL TWO PRECEDING ASSESSMENT YEARS. IN FIRST APPEAL THE CIT(A) RESTRICTED THE ADDITION TO 8.5% O F THE ALLEGED BOGUS PURCHASES. THE GP DECLARED BY THE ASSESSEE IN THE IMPUGNED ASSESSMENT YEAR IS 10.10%. I FIND THE ORDER OF CIT(A) REASONAB LE AND FAIR AND I CONCUR WITH THE SAME. NO FURTHER INTERFERENCE IN THE IMPUGNED ORDER IS CALLED FOR. THE IMPUGNED ORDER IS UPHELD AND APPEAL OF THE ASSESSEE IS DISMISSED. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON TUESDAY TH E 17TH DAY OF MARCH, 2020. SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, ,/ DATED 17/03/2020 VM , SR. PS(O/S) COPY OF THE ORDER FORWARDED TO : 1. # / THE APPELLANT , 2. &' / THE RESPONDENT. 3. -' ( )/ THE CIT(A)- 4. -' CIT 5. 01&' , . . . , / DR, ITAT, MUMBAI 6. 12345 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI