INCOME TAX OFFICER 19(3)(1), MUMBAI V. RAMESH SAWANTMAL BHANSALI, MUMBAI

ITA 4395/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5414 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 05-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JYOTI LAKSHMI NAYAKLD
• Assessee Lawyers: RAJ KUMAR SINGH LD
• Keywords: Bogus purchase; Accommodation entries; Set aside
• Section: 143(3)

Judgement Text

ITA NO.4395/MUM/2018 SHRI RAMESH SAWANTMAL BHANSALI ASSESSMENT YEAR :2010-11 1 IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, VP AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.4395/MUM/2018 ( / ASSESSMENT YEAR : 2010-11 ) I TO - 19(3)(1) ROOM NO.202, 8TH FLOOR MATRU MANDIR MUMBAI-400 007. / VS. SHRI RAMESH SAWANTMAL BHANSALI 35-39, SAGAR BUILDING V.P. ROAD MUMBAI- 400 004. %& ./ ./PAN/GIR NO. AEMPB-0518-A ( &( /APPELLANT ) : ( )*&( / RESPONDENT ) ASSESSEE BY : SHRI RAJKUMAR SINGH -LD.AR REVENUE BY : MS. JYOTI LAKSHMI NAYAK -LD. DR / DATE OF HEARING : 04/02/2020 / DATE OF PRONOUNCEMENT : 19/02/2020 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2010-11 CONTEST THE ORDER OF LD. COMMI SSIONER OF INCOME- TAX (APPEALS)-54 , MUMBAI, [IN SHORT REFERRED TO AS CIT(A)], ORDER DATED 13/04/2018, APPEAL NO. CIT(A)-30/IT-10326/ITO.19(3) (1)/2017-18 ON FOLLOWING GROUNDS OF APPEAL:- I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCE OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DIRECTING AO TO RESTRICT THE ESTIMATIO N OF THE PROFIT @ 12.5 INSTEAD OF 25% OF THE TOTAL NON-GENUINE PURCHASES WITHOUT ACCEPTING THAT THE ASSESSEE DID NOT DISCHARGE HIS DUTY ITA NO.4395/MUM/2018 SHRI RAMESH SAWANTMAL BHANSALI ASSESSMENT YEAR :2010-11 2 TO PROVE THAT THE PURCHASES MADE FROM THE THIRTEEN PARTIES WERE GENUINE AND DID NOT PRODUCE ANY DELIVERY CHALLANS, TRANSPORT RECEIPTS, GOODS INWARD REGISTER MAINTAINED AT GOODDOWN ETC?.' 2) ''WHETHER ON THE FACTS AND IN THE CIRCUMSTANCE O F THE CASE AND IN LAW, THE LD.CIT(A) HAS ERRED IN DIRECTING AO TO REDUCE THE GP ALREADY SHOW N BY THE ASSESSEE ON THESE BOGUS PURCHASES WITHOUT ACCEPTING THAT THE ASSESSEE DID N OT DISCHARGE HIS DUTY TO PROVE THAT THE PURCHASES MADE FROM THE THIRTEEN PARTIES WERE GENUI NE AND DID NOT PRODUCE ANY DELIVERY CHALLANS, TRANSPORT RECEIPTS, GOODS INWARD REGISTER MAINTAINED AT GOODDOWN ETC?.' 3) 'WHETHER ON THE FACTS AND IN THE CIRCUMSTANCE OF THE CASE AND IN LAW, THE LD.CIT(A) IS JUSTIFIED IN CONFIRMING THE ADDITION @ 12.5 PROFIT RATE ON TOTAL PURCHASES OF RS. 3,04,49,187/- MADE BY THE ASSESSEE FROM THE THIRTEEN PARTIES WHEN DURING THE INVESTIGATION BY SALES TAX DEPARTMENT OF MAHARASHTRA GOVERNMENT, IT WAS THE CO NCLUSIVELY PROVED BEYOND DOUBT THAT THESE PARTIES ARE ONLY INTO PROVIDING ACCOMMODATION ENTRIES AND DO NOT DO ANY REAL BUSINESS?' 4) THE APPELLANT PRAYS THAT THE ORDER OF THE LD. CI T(A) ON THE ABOVE GROUNDS BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. AS EVIDENT FROM GROUNDS OF APPEAL, THE SOLE ISSUE T HAT ARISES FOR OUR CONSIDERATION IS ESTIMATED ADDITIONS ON ACCOUNT OF ALLEGED BOGUS PURCHASES. 2. THE LD. AUTHORIZED REPRESENTATIVE FOR ASSESSEE ( AR), AT THE OUTSET, SUBMITTED THAT THE ASSESSEE HAD ALSO PREFER RED FURTHER APPEAL AGAINST THE APPELLATE ORDER BEFORE THIS TRIBUNAL VI DE ITA NO.4690/MUM/2018 ORDER DATED 05/11/2019 WHEREIN THE MATTER HAS BEEN RESTORED BACK WITH CERTAIN DIRECTIONS. A COPY OF THE ORDER HAS BEEN PLACED ON RECORD. 3. IN THE ABOVE BACKGROUND, WE FIND THAT THE ASSESS EE BEING RESIDENT INDIVIDUAL WAS ASSESSED FOR YEAR UNDER CONSIDERATIO N U/S 143(3) R.W.S. 147 ON 29/01/2016 WHEREIN IT WAS SADDLED WITH ESTIM ATED ADDITIONS OF 25% AGAINST ALLEGED BOGUS PURCHASES FOR RS.304.49 LACS. UPON FURTHER APPEAL, LD. CIT(A) RESTRICTED THE ADDITIONS TO 12.5 %. AGGRIEVED, THE ASSESSEE AS WELL AS REVENUE PREFERRED FURTHER APPEA L AGAINST THE SAME. 4. WE FIND THAT THE ASSESSEES APPEAL HAS ALREADY B EEN DISPOSED-OFF BY SMC BENCH OF THIS TRIBUNAL VIDE ITA NO. 4690/MUM /2018 ORDER DATED ITA NO.4395/MUM/2018 SHRI RAMESH SAWANTMAL BHANSALI ASSESSMENT YEAR :2010-11 3 05/11/2019 WHEREIN VIDE PARA-8, LD. AO HAS BEEN DIR ECTED TO RESTRICT THE ADDITIONS BY BRINGING GROSS PROFIT ON SUCH BOGUS PU RCHASES AS THE SAME RATE AS THAT OF OTHER GENUINE PURCHASES. 5. SINCE A VIEW HAS ALREADY BEEN TAKEN IN THE MATTE R AND CERTAIN DIRECTIONS HAVE ALREADY BEEN ISSUED TO LD. AO IN TH E MATTER OF ESTIMATION, RESPECTFULLY FOLLOWING THE SAME, WE DIS MISS THE REVENUES APPEAL. 6. THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH FEBRUARY, 2020. SD/- SD/- (MAHAVIR SINGH) (MA NOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI; DATED : 19/02/2020 SR.PS, JAISY VARGHESE !'! / COPY OF THE ORDER FORWARDED TO : 1. &( / THE APPELLANT 2. )*&( / THE RESPONDENT 3. 1 ( ) / THE CIT(A) 4. 1 / CIT CONCERNED 5. 23),4 , 4 , / DR, ITAT, MUMBAI 6. 3567 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.