ITO 19(3)(1), Mumbai V. RAMESH D JAIN (HUF), Mumbai

ITA 4529/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 4952 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 04-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY J SETHI
• Keywords: Bogus purchase
• Section: 133(6)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI , ! BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 4529 / /201 9 ((. . 2009-10 ) ITA NO.4529/MUM/2019 (A.Y.2009-10) INCOME TAX OFFICER-19(3)(1), ROOM NO.202, 2 ND FLOOR, MATRU MANDIR, TARDEO ROAD, MUMBAI 400 007 ...... * / APPELLANT ( VS. RAMESH D. JAIN (HUF), SHOP NO. 3, 56/64 NANUBHAI DESAI ROAD C.P. TANK, MUMBAI 400 004 PAN: AAFHR 4464J ..... +,/ RESPONDENT *-/ APPELLANT BY : SHRI SANJAY J. SETHI +,-/ RESPONDENT BY : NONE (., / DATE OF HEARING : 06/01/2021 /01 ., / DATE OF PRONOUNCEMENT : 05/04/2021 / ORDER THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) -6, MUMBAI [IN SHORT THE CIT(A)] DATED 26/04/2019 FOR THE ASSESSMENT YEAR 2009-10. 2. SHRI SANJAY J. SETHI REPRESENTING THE DEPARTMENT SUBMITTED THAT THE ASSESSEE HAD INDULGED IN OBTAINING BOGUS PURCHASE B ILLS AMOUNTING TO 2 . 4529 / /201 9 ((. .2009-10 ) ITA NO. 4529/MUM/2019 (A.Y.2009-10) RS.45,80,827/- FROM VARIOUS HAWALA DEALERS. DURING ASSESSMENT PROCEEDINGS NOTICE UNDER SECTION. 133(6) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) WERE ISSUED TO THE DEALERS ON THE ADDRESSES PROVIDE D BY THE ASSESSEE/RESPONDENT, THE SAME WERE RETURNED BACK UN SERVED BY THE POSTAL AUTHORITIES. NO CONFIRMATIONS WERE EITHER FILED BY THE ASSESSEE FROM THE SAID DEALERS. THE ASSESSEE FAILED TO PROVE GENUINENESS O F PURCHASES AND THE DEALERS. THE ASSESSING OFFICER MADE ADDITION OF 25 % OF THE BOGUS PURCHASES. IN FIRST APPELLATE PROCEEDINGS, THE CIT(A) RESTRICT ED THE ADDITION TO 12.5% OF SUCH PURCHASES. THE LD. DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE ADDITION MADE BY THE ASSESSING OFFICER IN RESPECT O F BOGUS PURCHASES WAS FAIR AND SHOULD HAVE BEEN SUSTAINED BY THE CIT(A). THE L D. DEPARTMENTAL REPRESENTATIVE PRAYED FOR REVERSING THE FINDINGS OF CIT(A) AND RESTORING THE ADDITION MADE IN ASSESSMENT PROCEEDINGS. 3. THE SUBMISSIONS MADE BY LD. DEPARTMENTAL REPRESE NTATIVE HEARD, ORDERS OF AUTHORITIES BELOW EXAMINED. THE ASSESSEE IS A DE ALER IN FERROUS AND NON- FERROUS METALS. THE ASSESSEE HAS ALLEGEDLY MADE BOG US PURCHASES AGGREGATING TO RS.45,80,827/- FROM FIVE DEALERS DECLARED AS HAW ALA OPERATORS BY THE SALES TAX DEPARTMENT, GOVERNMENT OF MAHARASHTRA. UNDISPUT EDLY, THE ASSESSEE FAILED TO DISCHARGE HIS ONUS IN PROVING GENUINENESS OF PURCHASES AND AUTHENTICITY OF THE DEALERS. THE ASSESSING OFFICER MADE ADDITION OF RS.11,45,207/- BY ESTIMATING 25% PROFIT EMBEDDED IN BOGUS PURCHASES. THE CIT(A) RESTRICTED G.P. AT 12.5% ON BOGUS PURCHASES. KEEPING IN VIEW THE NATURE OF ASSESSEES BUSINESS, ESTIMATION OF PROFIT ON BOG US PURCHASES BY THE ASSESSING OFFICER WAS ON HIGHER SIDE. I FIND NO MER IT IN APPEAL BY THE REVENUE, 3 . 4529 / /201 9 ((. .2009-10 ) ITA NO. 4529/MUM/2019 (A.Y.2009-10) HENCE, THE IMPUGNED ORDER IS UPHELD AND THE APPEAL BY REVENUE IS DISMISSED, SANS MERIT. 4. IN THE RESULT, APPEAL BY THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY , THE 05 TH DAY OF APRIL, 2021 SD./- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, 3(/ DATED: 05/04/2021 VM , SR. PS (O/S) COPY OF THE ORDER FORWARDED TO : 1. * / THE APPELLANT , 2. +, / THE RESPONDENT. 3. 4, ( )/ THE CIT(A)- 4. 4, CIT 5. 56+,( , . . . , / DR, ITAT, MUMBAI 6. 6789: / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI