ITO-21(2)(2), Mumbai V. SHRI. LAXMMICHAND SHAH (HUF), Mumbai

ITA 4435/MUM/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 9388 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 28-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY SETHILD
• Keywords: Bogus purchase

Judgement Text

ITA NO.4435/MUM/2019 SHRI LAXMICHAND SHAH (HUF) ASSESSMENT YEAR: 2009-10 1 - IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI , , BEFORE HONBLE SHRI AMARJIT SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO.4435/MUM/2019 ( / ASSESSMENT YEAR: 2009-10) ITO - 21(2)(2) PIRAMAL CHAMBERS, 1 ST FLOOR ROOM NO.109, LALBAUG PAREL, MUMBAI-400 012 / VS. SH RI LAXMICHAND V. SHAH (HUF) PROP. OF SPARK BLUE RESEARCH IND., GARAGE NO.22/3, SNEHA SADAN S.T. ROAD, MATUNGA MAHIM-WEST, MUMBAI-16 '# ./ ./PAN/GIR NO. AAAHS-4970-F ( ! #% /APPELLANT ) : ( &'#% / RESPONDENT ) REVENUE BY : SHRI SANJAY SETHI-LD. DR ASSESSEE BY : NONE / DATE OF HEARING : 24/12/2020 / DATE OF PRONOUNCEMENT : 04/01/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AGGRIEVED BY THE ORDER OF LD. COMMISSIONER OF IN COME-TAX (APPEALS)-33, MUMBAI [IN SHORT CIT(A)], APPEAL NO. CIT(A)- 33/RG.21/349/2014-15 ORDER DATED 24/04/2019, THE RE VENUE IS IN FURTHER APPEAL BEFORE US. THE IMPUGNED ORDER HAS RE STRICTED THE ADDITION ON ACCOUNT OF ALLEGED BOGUS PURCHASES TO T HE EXTENT OF 15.5% OF AGGREGATE PURCHASE OF 4,33,992/- AS AGAINST ESTIMATION OF 25% AS MADE BY LEARNED ASSESSING OFFICER. ITA NO.4435/MUM/2019 SHRI LAXMICHAND SHAH (HUF) ASSESSMENT YEAR: 2009-10 2 2. THOUGH, NONE APPEARED FOR THE ASSESSEE, HOWEVER, MATERIAL ON RECORD WAS SUFFICIENT FOR DISPOSAL OF THE APPEAL . THEREFORE, THE MATTER WAS PROCEEDED-WITH ON THE BASIS OF THE MATER IAL AVAILABLE ON RECORD. THE LD. DR SOUGHT RESTORATION OF ESTIMATION AS MADE BY LD.AO. 3. DURING ASSESSMENT PROCEEDINGS, PURSUANT TO RECEI PT OF CERTAIN INFORMATION FROM SALE TAX DEPARTMENT, MAHAR ASHTRA, IT WAS ALLEGED THAT THE ASSESSEE PROCURED BOGUS PURCHASE B ILLS OF 4,33,992/- FROM AN ENTITY NAMELY M/S SHREE AMAAYA E NTERPRISES. NO REPLY WAS RECEIVED IN RESPONSE TO NOTICE U/S 133 (6) OF THE ACT. ACCORDINGLY, THE LEARNED ASSESSING OFFICER ESTIMATE D THE ADDITION OF 25% AS AGAINST THESE PURCHASE. UPON FURTHER APPE AL, THE LEARNED CIT(A) RESTRICTED THE SAME TO 15.5% BEING G ROSS PROFIT RATE REFLECTED BY THE ASSESSEE. AGGRIEVED, THE REVENUE I S IN FURTHER APPEAL BEFORE US. 4. UPON CAREFUL CONSIDERATION, WE DO NOT FIND ANY I NFIRMITY IN THE ORDER OF THE LEARNED CIT(A) IN RESTRICTING THE ADDI TION ON ACCOUNT OF ALLEGED BOGUS PURCHASE TO THE EXTENT OF GROSS PROFI T RATE REFLECTED BY THE ASSESSEE DURING THE YEAR. THE SAID ESTIMATIO N WAS A FAIR ESTIMATE OF PROFIT THAT MAY HAVE BEEN EARNED BY THE ASSESSEE BY PROCURING BOGUS PURCHASES BILLS SINCE THE SALE TURN OVER HAS NOT BEEN DISPUTED. ITA NO.4435/MUM/2019 SHRI LAXMICHAND SHAH (HUF) ASSESSMENT YEAR: 2009-10 3 5. RESULTANTLY, THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED ON 04 TH JANUARY, 2021. SD/ - SD/- (AMARJIT SINGH) (MA NOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 04/01/2021 S R.PS, SUDIP SARKAR/SR.PS, JAISY VARGHESE / COPY OF THE ORDER FORWARDED TO : 1. ! #% / THE APPELLANT 2. &'#% / THE RESPONDENT 3. - ( ! ) / THE CIT(A) 4. - / CIT CONCERNED 5. ./ & 0 , ! 0 , / DR, ITAT, MUMBAI 6. /123 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.