PADMARAM R. CHOUDHARY, MUMBAI V. ITO 19(2)(5), MUMBAI

ITA 4237/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8619 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-11-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 08-06-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N HEMALATHA
• Keywords: Bogus purchase; Accommodation entries
• Section: 148

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) I.T.A. NO. 4237 /MUM/ 2017 (ASSESSMENT YEAR 20 10 - 11 ) SHRI PADMARAM R. CHOUDHARY 9/11, 2 ND FLOOR 2 ND CARPENTER STREET NEAR GOAL DEWOOL MUMBAI - 400 004. PAN : AAGPC7140P V S . ITO 19(2)(5) MATRU MANDIR 201, TARDEO ROAD MUMBAI - 400007. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY NONE DEPARTMENT BY MS. N. HEMALATHA DATE OF HEARING 1 .1 1 . 201 7 DATE OF PRONOUNCEMENT 9 . 11 . 201 7 O R D E R THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 8.2.2017 PASSED BY THE LEARNED CIT(A) - 29, MUMBAI AND IT RELATES TO A.Y. 2010 - 11. NONE APPEARED ON BEHALF OF THE ASSESSEE , EVEN THOUGH NOTICE OF HEARING WAS SENT BY REGISTERED POST ON MORE THAN ONE OCCASION. HENCE, I PROCEED TO DISPOSE OF THE APPEAL, EX - PARTE, WITHOUT PRESENCE OF THE ASSESSEE. 2. FACTS RELATING TO THE CASE ARE THAT THE ASSESSEE IS ENGAGE IN THE BUSINESS OF FERROUS AND NON - FERROUS METAL. THE REVENUE GOT INFORMATION FROM SALES TAX DEPARTMENT THAT CERTA IN DEALERS ARE INDULGING IN PROVIDING ACCOMMODATION ENTRIES WITHOUT ACTUALLY SUPPLYING THE MATERIALS . IT WAS NOTIC ED THAT THE ASSESSEE HAS PURCHASED GOODS FROM EIGHT OF SUCH PARTIES AGGREGATING TO ` 333.90 LAKHS . HENCE THE ASSESSING OFFICER REOPENED THE AS SESSMENT FOR THE YEAR UNDER CONSIDERATION BY ISSUING NOTICE U/S. 148 OF THE ACT. THE ASSESSING OFFICER, BY FOLLOWING THE DECISION RENDERED BY HON'BLE GUJARAT HIGH COURT IN THE CASE OF SIMIT P. SHETH (356 ITR 451), DETERMINED THE PROFIT FROM SUCH BOGUS PUR CHASES AT 12.5% OF THE PURCHASE VALUE, WHICH WORKED OUT TO ` 41.73 SHRI PADMARAM R. CHOUDHARY 2 LAKHS. THE ASSESSING OFFICER COMPLETED THE ASSESSMENT BY ADDING ` 41.73 LAKHS TO THE TOTAL INCOME OF THE ASSESSEE. 3. IN THE APPELLATE PROCEEDINGS, THE LEARNED CIT(A) AGREED IN PRINCIPL E W ITH THE ASSESSING OFFICER THAT THE PROFIT FROM BOGUS PURCHASES CAN BE ADDED AND THE RATE OF PROFIT ALSO CAN BE TAKEN AT 12.50%. HOWEVER HE TOOK THE VIEW THAT THE PROFIT ALREADY DECLARED ON SUCH PURCHASES SHOULD BE DEDUCTED. ACCORDINGLY HE DIRECTED THE ASS ESSING OFFICER TO REDUCE PROFIT ALREADY DECLARED BY THE ASSESSEE ON THESE PURCHASES FROM THE AMOUNT OF ADDITION SO ESTIMATED. ACCORDINGLY, HE ALLOWED THE APPEAL OF THE ASSESSEE PARTLY. STILL AGGRIEVED, THE ASSESSEE HAS FILED THIS APPEAL BEFORE THE TRIBUNAL . 4. I HAVE HEARD THE LEARNED DEPARTMENTAL REPRESENTATIVE AND PERUSED THE RECORD. I NOTICED THAT THE ASSESSING OFFICER HAS FOLLOWED THE DECISION RENDERED BY HON'BLE GUJARAT HIGH COURT IN THE CASE OF SIMIT P. SHETH (SUPRA). I NOTICED THAT THE LEARNED CIT(A ) HAS ALREADY GRANTED PARTIAL RELIEF TO THE ASSESSEE. BEFORE ME, ASSESSEE DID NOT FURNISH ANY MATERIAL TO CONTRADICT THE FINDINGS GIVEN BY THE LEA RNED CIT(A). HENCE I HAVE NO OTHER OPTION BUT TO CONFIRM THE ORDER PASSED BY THE LEARNED CIT(A) ON THIS ISSUE. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 9 .11 . 201 7. SD/ - (B.R.BASKARAN) ACCOUNTANT MEMBER MUMBAI ; DATED : 9 / 11 / 20 1 7 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI SHRI PADMARAM R. CHOUDHARY 3 6. GUARD FILE. BY ORDER, //TRUE COPY// ( ASSTT. REGISTRAR /SENIOR PS ) PS ITAT, MUMBAI