DCIT 9(2), MUMBAI V. PIONEER EMBRODERIES LTD, MUMBAI

ITA 4506/MUM/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 92721 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 02-06-2015
• Assessment Year: 2001-2002
• Appeal Filed On: 05-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PERMANAND J
• Keywords: Bogus purchase
• Section: 154

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C , MUMBAI , . . , , BEFORE SHRI JOGINDER SINGH, J UDICIAL M EMBER , A ND S HRI N.K. BILLAIYA , A CCOUNTANT M EMBER ITA NO. 4506 /MUM/2013 ASSESSMENT YEAR: 20 0 1 - 02 D CIT - 9 ( 2 ) , R.NO.218 2 ND FLOOR, AAYAKAR BHAVAN MUMBAI 400 0 20 / VS. M/S. PIONEER EMBROIDERIES LTD. 318, 3 RD FLOOR, CHINCHOLI BUNDER MALAD (W), MUMBAI 400 062 / APPELLANT / RESPONDENT P.A. NO. AAACP3869R ITA NO. 4507/MUM/2013 ASSESSMENT YEAR: 2002 - 03 DCIT - 9(2), R.NO.218 2 ND FLOOR, AAYAKAR BHAVAN MUMBAI 400 020 / VS. M/S. PIONEER EMBROIDERIES LTD. 318, 3 RD FLOOR, CHINCHOLI BUNDER MALAD (W ), MUMBAI 400 062 / APPELLANT / RESPONDENT P.A. NO.AAACP3869R / REVENUE BY SHRI PERMANAND J. / ASSESSEE BY SHRI RAKESH JOSHI / DATE OF HEARING 2/6 /2015 / DATE OF ORDER : 05 / 6 /2015 M/S. PIONEER EMBROIDERIES LTD. 2 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) BOTH THESE APPEALS ARE BY THE REVENUE FOR THE ASSESSMENT YEAR 2001 - 02 AND 2002 - 03, DIRECTED AGAINST THE IMPUGNED ORDERS DATED 12 TH MARCH 2013 AND 13 TH MARCH 2013, RESPECTI VELY. FIRST, WE SHALL TAKE UP ITA NO.4506/MUM./2013, FOR THE ASSESSMENT YEAR 2001 - 02, WHEREIN THE GROUND TAKEN BY THE REVENUE IS WHETHER THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN HOLDING THAT THE ASSESSING OFFICER HAS NOT FOLLOWED THE DIREC TIONS OF THE TRIBUNAL IN VIEW OF THE FACT THAT IF ANY NEW EVIDENCE OR SUPPORTING DOCUMENT IS SUBMITTED BY THE ASSESSEE, THE ASSESSING OFFICER HAS RIGHT TO VERIFY THE GENUINENESS OF THE SAME AND ACCORDINGLY ACCEPT OR REJECT IT AND FURTHER IN DELETING THE AD DITION OF RS.45,47,662, MADE ON ACCOUNT OF BOGUS PURCHASES. 2. THE LEARNED D.R., SHRI PERMANAND J., ADVANCED HIS ARGUMENTS WHICH ARE IDENTICAL TO THE GROUND RAISED. ON THE OTHER HAND, SHRI RAKESH JOSHI, LEARNED COUNSEL FOR THE ASSESSEE DEFENDED THE CONCLU SION ARRIVED AT IN THE IMPUGNED ORDER. 2.1 WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IF THE OBSERVATION MADE IN THE ASSESSMENT ORDER, LEADING TO ADDITION MADE TO THE TOTAL INCOME, CONCLUSION DRAWN IN THE IMPUGN ED ORDER, MATERIAL AVAILABLE ON RECORD, ASSERTIONS MADE BY THE LD. RESPECTIVE COUNSELS, IF KEPT IN JUXTAPOSITION AND ANALYZED, WE ARE OF THE VIEW THAT THE ORDER OF THE TRIBUNAL HAS TO BE READ IN ITS ENTIRETY AND NOT IN PIECEMEAL. M/S. PIONEER EMBROIDERIES LTD. 3 THE ASSESSEE IS A PUBLIC L IMITED COMPANY MAINTAINS COMPLETE STOCK REGISTER AND THE TRIBUNAL HAS OBSERVED IN ITS EARLIER ORDER THAT NO ATTEMPT HAS BEEN MADE BY THE AUTHORITIES TO CO - RELATE THE TOTAL PURCHASES MADE BY THE ASSESSEE INCLUDING THE ALLEGED BOGUS PURCHASES WITH THE STOCK RECORD. IT HAS BEEN FURTHER OBSERVED THAT THE CASE OF BOGUS PURCHASES HAS NOT BEEN CONCLUSIVELY PROVED. THE TRIBUNAL DIRECTED THAT IF THE CONTENTION OF THE ASSESSEE IS FOUND TO BE CORRECT I.E., TOTAL QUANTITY OF GOODS PURCHASED INCLUDING GENUINE AND ALLEGE D BOGUS PURCHASES TALLIES WITH THE QUANTITATIVE RECORDS, NO ADDITION CAN BE MADE AND IN THE OTHERWISE POSITION, THE ASSESSING OFFICER IS FREE TO DECIDE AS PER LAW. IN VIEW OF THIS DIRECTION AND THE REASONED ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOM E TAX (APPEALS) ON THE ISSUE, WE FIND NO MERIT IN THE APPEAL OF THE REVENUE. THIS APPEAL IS DISMISSED. 3. INSOFAR AS ITA NO.4507/MUM./2013, IS CONCERNED, THE CRUX OF ARGUMENT BY THE LEARNED D.R. IS THAT THE STOCK REGISTER WAS NOT PRODUCED BY THE ASSESSEE . THE LEARNED COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ASSESSEE FILED APPLICATION U/S 154 OF THE ACT, FOR RECTIFICATION OF THE MISTAKE AND THE SAME HAS NOT BEEN DISPOSED OFF BY THE ASSESSING OFFICER. THE ASSESSEE ALSO FILED THE PHOTOCOPY OF THE APPLICAT ION. IN VIEW OF THE ASSERTION, THIS APPEAL IS REMANDED BACK TO THE FILE OF THE ASSESSING OFFICER TO DISPOSE OFF THE RECTIFICATION APPLICATION OF THE ASSESSEE FILED U/S 154 OF THE ACT. INSOFAR AS THE MERIT OF THE APPEAL IS CONCERNED, WE FIND NO INFIRMITY IN THE CONCLUSION OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS). M/S. PIONEER EMBROIDERIES LTD. 4 FINALLY, THE REVENUES APPEALS OF THE REVENUE ARE DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LEARNED REPRESENTATIVES FROM BOTH THE SIDES AT THE CONCLU SION OF THE HEARING ON 5 TH JUNE 2015 . SD/ SD/ ( N.K. BILLAIYA ) (JOGINDER SINGH) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; DATED : 05 /06/2015 . / PRADEEP J. CHOWDHURY / SR. PRIVATE SECRETARY / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT, MUMBAI. 4 . / CIT(A) - , MUMBAI 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI