DCIT CEN CIR 5(1), MUMBAI V. SHREE GLOBAL TRADEFIN LTD, MUMBAI

ITA 454/MUM/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7109 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2009-2010
• Appeal Filed On: 22-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAUDHARY ARUN KUMAR SINGH
• Assessee Lawyers: DILIP LAKHANI
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH G, MUMBAI BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER ITA NO.454/M/2018 ASSESSMENT YEAR: 2009-10 DCIT 2(1)(2), CC-5(1), R. NO.1928, 19 TH FLOOR, AIR INDIA BUILDING, NARIMAN POINT, MUMBAI - 400021 VS. M/S. SHREE GLOBAL TRADEFIN LTD., 35, ASHOK CHAMBERS, BROACH STREET, DEVJI RATANSEY MARG, MASJID BUNDER, MUMBAI 400 009 PAN: AAACB2975J (APPELLANT) (R ESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI DILIP LAKHANI, A.R. REVENUE BY : SHRI CHAUDHARY ARUNKUMAR SINGH, D.R . DATE OF HEARING : 25.04.2019 DATE OF PRONOUNCEMENT : 30.04.2019 O R D E R PER RAJESH KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVEN UE AGAINST THE ORDER DATED 17.11.2017 OF THE COMMISSIO NER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS TH E CIT(A)] RELEVANT TO ASSESSMENT YEAR 2009-10. 2. THE ONLY ISSUE RAISED BY THE REVENUE IN BOTH THE GROUNDS OF APPEAL IS AGAINST THE ORDER OF LD. CIT(A) DIRECT ING THE AO TO MAKE THE DISALLOWANCE @ 12.5% OF THE BOGUS PURCHASE S AS AGAINST THE 100% DISALLOWANCE MADE BY THE AO. 3. THE LD. A.R., AT THE OUTSET, SUBMITTED THAT THE CROSS APPEAL OF THE ASSESSEE IN THE INSTANT YEAR HAS BEEN DECIDE D BY THE CO- ITA NO.454/M/2018 M/S. SHREE GLOBAL TRADEFIN LTD. 2 ORDINATE BENCH OF THE TRIBUNAL IN ITA NOS.7310 TO 7313/MUM/2017 VIDE ORDER DATED 15.10.2018 IN A.Y. 2 009-10 & OTHERS DIRECTING THE AO TO ASSESS THE PROFIT MA RGIN ON THE BOGUS PURCHASES @ 3%. THE LD. A.R., THEREFORE PRAY ED THAT IN VIEW OF THE DECISION OF THE CO-ORDINATE BENCH OF TH E TRIBUNAL THE APPEAL FILED BY THE REVENUE HAS BECOME INFRUCTUOUS AND HENCE MAY KINDLY BE DISMISSED. 4. THE LD. D.R., ON THE OTHER HAND, APPEARED TO BE FAIRLY AGREED TO THE CONTENTIONS OF THE LD. A.R. THAT CROS S APPEAL HAS BEEN DECIDED WHEREIN THE PROFIT MARGIN OF 3% WAS DI RECTED TO BE MADE ON THE AMOUNT OF BOGUS PURCHASES. 5. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL ON RECORD, WE OBSERVE THAT THE CROSS APPEAL OF THE ASS ESSEE HAS BEEN DECIDED BY THE CO-ORDINATE BENCH OF THE TRIBUN AL VIDE ORDER DATED 15.10.2018 IN ITA NOS.7310 TO 7313/MUM/2017(S UPRA) WHEREIN THE CO-ORDINATE BENCH OF THE TRIBUNAL HAS D IRECTED THAT GP @ 3% BE APPLIED ON THE AMOUNT OF BOGUS PURCHASES AS AGAINST 12.5% DIRECTED BY LD. CIT(A). ACCORDINGLY, WE ARE OF THE VIEW THAT THE APPEAL FILED BY THE REVENUE IS RENDER ED INFRUCTUOUS AND IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30.04.2019. SD/- SD/- ( RAM LAL NEGI) (RAJESH KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 30.04.2019. * KISHORE, SR. P.S. ITA NO.454/M/2018 M/S. SHREE GLOBAL TRADEFIN LTD. 3 COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORDER DY/ASS TT. REGISTRAR, ITAT, MUMBAI.