VARDHMAN REMEDIES PRIVATE LIMITED , MUMBAI V. DEPUTY COMMISSIONER OF INCOME TAX 13(3)(2), MUMBAI

ITA 4679/MUM/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1680 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Appeal Filed On: 30-06-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: POOJA SWAROOP LD
• Assessee Lawyers: BHUPENDRA SHAH LD
• Keywords: Bogus purchase
• Section: 143(3); 147; 144; 2

Judgement Text

ITA.NO.4679/MUM/2017 VARDHMAN REMEDIES PRIVATE LIMITED ASSESSMENT YEAR-2011-12 IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI , , BEFORE SHRI SAKTIJIT DEY, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.4679/MUM/2017 ( / ASSESSMENT YEAR: 2011-12) V ARDHMAN REMEDIES PRIVATE LTD. H-405, GOKUL RESIDENCY NEAR SAMTA NAGAR, KANDIVALI(E) MUMBAI-400 101 / VS. DEPUTY COMMISSIONER OF INCOME TAX-13(3)(2) ROOM NO.229, AAYKAR BHAVAN, M.K.ROAD MUMBAI-400 020 ! ./ ./PAN/GIR NO. AABCV-2431-L ( !# /APPELLANT ) : ( $%!# / RESPONDENT ) ASSESSEE BY : BHUPENDRA SHAH, LD. AR REVENUE BY : POOJA SWAROOP, LD. SR. DR / DATE OF HEARING : 25/07/2018 / DATE OF PRONOUNCEMENT : 05/09/2018 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2011-12 CONTEST THE ORDER OF THE LD. COMMISSIONER OF INCOME -TAX (APPEALS)-21 [CIT(A)], MUMBAI, APPEAL NO.CIT(A)-21/ITO-13(3)(2)/IT-84/2016-17 DATED 26/05/2017 QUA CONFIRMATION OF CERTAIN ADDITIONS ON ACCOUNT OF ALLEGED BOGUS PURCHASES . THE ASSESSMENT FOR IMPUGNED AY WAS FRAMED BY LD. DEPUTY COMMISSIONER OF INCOME TAX CENTRAL-13(3) (2), MUMBAI ITA.NO.4679/MUM/2017 VARDHMAN REMEDIES PRIVATE LIMITED ASSESSMENT YEAR-2011-12 2 [AO] U/S 143(3) READ WITH SECTION 147 OF THE INCOME TAX ACT, 1961 WHEREIN THE ASSESSEE HAS BEEN SADDLED WITH ADDITION OF RS.1,18,755/- ON ACCOUNT OF ALLEGED BOGUS PURCHASES STATED TO BE MADE FROM A SUSPICIOUS DEALER PURSUANT TO RECEIPT OF CERTAIN IN FORMATION FROM SALES TAX DEPARTMENT, MAHARASHTRA. DURING IMPUGNED AY, THE ASSESSEE WAS ENGAGED IN THE BUSINESS OF MANUFACTURING & TRADING OF PHARMACEUTICAL PRODUCTS. 2. THE ORIGINAL RETURN OF INCOME WAS INITIALLY ASSE SSED U/S 144 READ WITH SECTION 147 OF THE INCOME TAX ACT, 1961 ON 27/02/2015 AT RS.60,42,954/- WHEREIN THE ASSESSEE WAS SADDLED WIT H SIMILAR ADDITIONS AGAINST ALLEGED BOGUS PURCHASES STATED TO BE MADE FROM FOUR SUCH SUSPICIOUS PARTIES. THE CASE WAS AGAIN SUBJECTED TO RE-ASSESSMENT PROCEEDINGS SINCE IT WAS FOUND THAT THE ASSESSEE MA DE ANOTHER PURCHASE OF RS.1,18,755/- FROM AN ENTITY NAMELY SHREE TRADING CORPORATION. THIS ADDITION OF RS.1,18,755/- IS THE SOLE SUBJECT MATTER OF THIS APPEAL. THE LD. FIRST APPELLATE AUTHORITY HAS ALREADY DISMISSED THE ASSESSEES APPEAL, AGAINST WHICH THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 3. THE ONLY PLEA RAISED BY LD. AUTHORIZED REPRESENT ATIVE FOR ASSESSEE [AR], SHRI BHUPENDRA SHAH, WAS THE FACT THAT THE ASSESSEE CONTESTED THE ADDITIONS AS MADE IN FIRST REASSESSME NT PROCEEDINGS BEFORE THIS TRIBUNAL VIDE ITA NO. 6773/MUM/2016 DATED 29/09/2017 WHEREIN THE ADDITIONS HAVE BEEN RESTRICTED TO 10%. THE LD. DR COULD NOT CONTROVERT THE AFORESAID FACT. 4. IN VIEW OF THE ADMITTED POSITION, SINCE A VIEW H AS ALREADY BEEN TAKEN BY THE TRIBUNAL IN ASSESSEES OWN CASE ON IDE NTICAL FACTS, TAKING ITA.NO.4679/MUM/2017 VARDHMAN REMEDIES PRIVATE LIMITED ASSESSMENT YEAR-2011-12 3 THE SAME VIEW, WE RESTRICT THE IMPUGNED ADDITIONS T O 10% OF RS.1,18,755/- WHICH COMES TO RS.11,876/-. THE BALAN CE ADDITION STANDS DELETED. 5. THE ASSESSEES APPEAL STAND PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 05 TH SEPTEMBER, 2018. SD/- SD/- (SAKTIJIT DEY) (M ANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 05.09.2018 SR.PS:-THIRUMALESH ! / COPY OF THE ORDER FORWARDED TO : 1. !# / THE APPELLANT 2. $%!# / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. + ,$ - , - , / DR, ITAT, MUMBAI 6. , ./0 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI