ITO-26(3)(5), Mumbai V. SHRI. WAJIDALI M H SHAIKH, Mumbai

ITA 443/MUM/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7572 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 30-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC , MUMBAI BEFORE SHRI R. C. SHARMA, ACCOUNTANT MEMBER ITA NO. 443 /MUM/ 2019 : A.Y : 2010 - 11 ITO 26(3)95), MUMBAI R.NO.504, 5 TH FLOOR C - 11, BANDRA KURLA COMPLEX PRATYAKSHAKAR BHAVAN BANDRA (E), M UMBAI - 400 051 VS. SHRI WAJIDALI M.H. SHAIKH SHOP NO.84, 1 ST TARGALI NEAR MADINA MASJID TARBAZAR KURLA ANDHERI ROAD JARIMARI, MUMBAI MAHARASHTRA PAN NO.AOVPS1206B REVENUE BY : SHRI ANOOP HIWASE ASSESSEE BY : NONE DATE OF HEARING : 27/01/2020 DA TE OF PRONOUNCEMENT : 27/01/2020 O R D E R PER R.C. SHARMA , ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) FOR THE A.Y.2010 - 11 IN THE MATTER OF ORDER PASSED U/S.143(3) R.W.S.147 OF THE INCOME TAX ACT, 1961. 2. I HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND THAT AO HAD MADE 100% ADDITION IN RESPECT OF ALLEGED BOGUS PURCHASES WHICH WAS RESTRICTED BY CIT(A) TO THE EXTENT OF 12.5% AFTER APPLYING JUDICIAL PRONOUNCEMENTS IN CASE OF BHOLANATH POL Y FAB PVT. LTD 355 ITR 290 (GUJ) AND SIMIT P SHETH 356 ITR 451. AFTER CONSIDERING ALL THE FACTS, THE CIT(A) HAS UPHELD THE ADDITION OF 12.5% IN RESPECT OF PROFIT ELEMENT EMBEDDED IN SUCH ALLEGED BOGUS PURCHASES. DETAILED FINDING HAS BEEN GIVEN BY CIT(A) AT PARA 7.4 TO 7.7, WHICH HAS NOT BEEN CONTROVERTED BY ITA NO. 443/MUM/2019 SHRI WAJIDALI M.H. SHAIKH 2 BRINGING ANY POSITIVE MATERIAL ON RECORD. ACCORDINGLY, WE UPHELD THE ORDER OF CIT(A) FOR RESTRICTING THE ADDITION TO THE EXTENT OF 12.5% ON ALLEGED BOGUS PURCHASES. 3. IN THE RESULT, APPEAL OF THE REVEN UE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 27 / 01 /20 20 SD/ - (R.C.SHARMA) ACCOUNTANT MEMBER MUMBAI; DATED 27 / 01 /20 20 KARUNA SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//