SURENDRA ENGINEERING CORPORATION PRIVATE LIMITED, MUMBAI V. DEPUTY COMMISSIONER OF INCOME TAX-1(3), MUMBAI

ITA 4373/MUM/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4816 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2010-2011
• Appeal Filed On: 13-06-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: CH ARUN KUMAR SINGH LD
• Keywords: Bogus purchase; Reasonable cause; Onus to prove; Condonation of delay; Reassessment proceedings
• Section: 142(1); 131

Judgement Text

ITA NOS.4373-74/MUM/2017 SURENDRA ENGINEERING CORP. LTD. ASSESSMENT YEARS- 2010-11 & 2011-12 1 IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI , , BEFORE HONBLE SHRI PAWAN SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.4373-74/MUM/2017 ( / ASSESSMENT YEARS: 2010-11 & 2011-12) SURENDRA ENGINEERING CORPORATION LIMITED 1, JAITIRATH MANSION 6A BARRACK ROAD BEHIND METRO ADLABS MUMBAI-400 020 / VS. DEPUTY COMMISSIONER OF INCOME TAX-1(3) AAYKAR BHAWAN M.K.ROAD MUMBAI 400 020 ./ ./PAN/GIR NO. AAMCS-9067-J ( /APPELLANT ) : ( / RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : CH. ARUN KUMAR SINGH- LD.DR !' / DATE OF HEARING : 05/02/2019 !' / DATE OF PRONOUNCEMENT : 14/02/2019 / O R D E R PER BENCH 1. AFORESAID APPEALS BY ASSESSEE FOR ASSESSMENT YEA RS [AY] 2010- 11 & 2011-12 CONTEST SEPARATE ORDERS OF FIRST APPEL LATE AUTHORITY. SINCE FACTS & ISSUES ARE PARI-MATERIA THE SAME, WE PROCEED TO DISPOSED-OFF THE SAME BY WAY OF THIS COMMON ORDER FOR THE SAKE OF CO NVENIENCE AND ITA NOS.4373-74/MUM/2017 SURENDRA ENGINEERING CORP. LTD. ASSESSMENT YEARS- 2010-11 & 2011-12 2 BREVITY. NONE HAS APPEARED FOR ASSESSEE DESPITE NOT ICE AND NO VALID ADJOURNMENT APPLICATION IS ON RECORD. THE PERUSAL O F ORDER SHEET ENTRIES REVEALS THAT THE ASSESSEE HAS REMAINED NEGLIGENT IN ATTENDING THE PROCEEDINGS ON EARLIER OCCASION ALSO. IT IS ALSO NO TED THAT THE ASSESSEE HAD MOVED APPLICATION FOR EARLY HEARING OF THESE AP PEALS, WHICH WERE ACCEPTED BY THE BENCH AND THE ASSESSEE WAS GRANTED EARLY HEARING VIDE ORDER SHEET ENTRY DATED 12/06/2018. DESPITE THE SAM E, THE ASSESSEE HAS REMAINED NEGLIGENT IN ATTENDING THE PROCEEDINGS WIT HOUT ANY REASONABLE CAUSE. LEFT WITH NO OPTION, WE PROCEED TO DISPOSE-O FF THE APPEALS ON THE BASIS OF MATERIAL ON RECORD AND AFTER HEARING LD. D EPARTMENTAL REPRESENTATIVE [DR], CH. ARUN KUMAR SINGH, WHO RELIED UPON THE IMPUGNED ORDERS. 2. THE REGISTRY HAS NOTED A DELAY OF 399 DAYS IN FI LING OF THESE APPEALS, THE CONDONATION OF WHICH HAS BEEN SOUGHT B Y THE ASSESSEE VIDE PETITION DATED 05/06/2017 WHICH IS SUPPORTED B Y THE AFFIDAVIT OF THE DIRECTOR OF THE ASSESSEE COMPANY. THE DELAY HAS SOL ELY BEEN ATTRIBUTED TO THE FACT THAT THE CONCERNED DIRECTOR REMAINED IN JAIL FOR ONE YEAR DUE TO DISPUTE WITH FAMILY MEMBER / DEBTORS OF THE COMPANY . UPON PERUSAL OF DOCUMENTS, THE BENCH REMAINED UNCONVINCED WITH THE BONA-FIDES OF THE SUBMISSIONS SINCE THE ONUS WAS ON ASSESSEE TO EXPLA IN EACH DAYS DELAY IN FILING THE APPEAL AND THE CONDONATION WAS NOT A MERE FORMALITY. THE ASSESSEE WAS A CORPORATE ENTITY WHICH WAS MANNE D BY TEAM OF DIRECTORS AND THEREFORE, THE REASONS ADDUCED IN SUP PORT OF CONDONATION ARE NOT FOUND TO BE PLAUSIBLE ONE. THEREFORE, THE A PPEALS ARE LIABLE TO BE DISMISSED ON THIS PRELIMINARY ISSUE ONLY. ITA NOS.4373-74/MUM/2017 SURENDRA ENGINEERING CORP. LTD. ASSESSMENT YEARS- 2010-11 & 2011-12 3 3.1 SO FAR AS THE MERITS OF THE CASE ARE CONCERNED, THE ASSESSEE WAS SUBJECTED TO REASSESSMENT PROCEEDINGS FOR AY 2010-1 1 ON 07/03/2014 PURSUANT TO RECEIPT OF CERTAIN INFORMATION THAT THE ASSESSEE STOOD BENEFITTED OF ACCOMMODATION PURCHASE BILLS AGGREGAT ING TO RS.149.32 LACS FROM 11 PARTIES, THE DETAILS OF WHICH HAVE ALR EADY BEEN EXTRACTED IN THE QUANTUM ASSESSMENT ORDER. ACCORDINGLY, STATUTOR Y NOTICES U/S 148, 143(2) & 142(1) WERE ISSUED TO THE ASSESSEE AND THE STATEMENT OF THE DIRECTOR OF ASSESSEE COMPANY U/S 131 WAS RECORDED O N 13/11/2013. THE FAILURE ON THE PART OF THE ASSESSEE TO ESTABLISH TH E GENUINENESS OF THE PURCHASE TRANSACTIONS CONCLUSIVELY LED THE LD. AO T O TREAT THESE PURCHASES AS BOGUS PURCHASES AND ACCORDINGLY, THE SAME WERE ADDED TO THE INCOME OF THE ASSESSEE. THE FACTORS ON THE B ASIS OF WHICH ABOVE CONCLUSION WAS DRAWN BY LD. AO, HAVE BEEN EXTRACTED ON PAGE NUMBERS 20-21 OF THE QUANTUM ASSESSMENT ORDER. 3.2 AGGRIEVED, THE ASSESSEE AGITATED THE SAME WITHO UT ANY SUCCESS BEFORE FIRST APPELLATE AUTHORITY VIDE IMPUGNED ORDE R DATED 01/02/2016 WHERE THE ASSESSEE FAILED TO MAKE ANY REPRESENTATIO N WHICH RESULTED INTO CONFIRMATION OF STAND OF LD. AO. AGGRIEVED, TH E ASSESSEE IS IN FURTHER APPEAL BEFORE US. 3.3 UPON CAREFUL CONSIDERATION OF FACTUAL MATRIX, T HE BENCH FORMED AN OPINION THAT THE COMPLETE ONUS TO PROVE THE GENUINE NESS OF THE PURCHASE TRANSACTIONS RESTED UPON THE ASSESSEE AND THE ASSES SEE HAS MISERABLY FAILED TO PROVE / ESTABLISH THE SAME. ACCORDINGLY, NO INFIRMITY OR PERVERSITY COULD BE FOUND IN THE ORDERS OF LOWER AU THORITIES. 3.4 SIMILAR ARE THE FACTS FOR AY 2011-12 WHEREIN TH E ASSESSEE HAS BEEN SADDLED WITH SIMILAR ADDITION OF RS.235.60 LAC S. ITA NOS.4373-74/MUM/2017 SURENDRA ENGINEERING CORP. LTD. ASSESSMENT YEARS- 2010-11 & 2011-12 4 4. KEEPING IN VIEW THE ABOVE FACTS & CIRCUMSTANCES, BOTH THE APPEALS STAND DISMISSED ON PRELIMINARY ISSUE OF CONDONATION OF DELAY AS WELL AS ON MERITS. 5. BOTH THE APPEALS STAND DISMISSED IN TERMS OF OUR ABOVE ORDER. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH FEBRUARY, 2019. SD/- SD/- (PAWAN SINGH) (MAN OJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED :14.02.2019 SR.PS:-THIRUMALESH / COPY OF THE ORDER FORWARDED TO : 1. ! / THE APPELLANT 2. '# ! / THE RESPONDENT 3. $$% ( ) / THE CIT(A) 4. $$% / CIT CONCERNED 5. & ''() , $) , / DR, ITAT, MUMBAI 6. ' +,- / GUARD FILE / BY ORDER, / ' (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.