ITO WD 19(3)(2), MUMBAI V. INMA ENTERPARISES, MUMBAI

ITA 469/MUM/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 3157 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2015
• Appeal Filed By: Department
• Bench Allotted: I
• Next Hearing Date: 08-09-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 20-01-2014
• Court: TRIBUNAL
• Department Lawyers: SIDHARAMPPA KAPPATTANVA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL I BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI SANDEEP GOSAIN, JUDICIAL MEMBER I.T.A. NO. 469/M/2014 (AY: 2009 - 2010 ) I.T.A. NO. 947/M/2014 (AY: 2010 - 2011 ) ITO WD 19(3)(2), 3 RD FLOOR, PIRAMAL CHAMBERS, R.NO.306, LALBAUG, MUMBAI - 400 012. / VS. INMA ENTERPRISES, 202 - A, DHEERAJ ARCADE, PALI NAKA, BANDRA (W), MUMBAI - 400 050. ./ PAN : AAAF10365A ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI SIDHARAMPPA KAPPATTANVA, DR / RESPONDENT BY : SHRI J.P. BAIRAGRA / DATE OF HEARING : 28 .09.2015 / DATE OF PRONOUNCEMENT : 30 .09.2015 / O R D E R PER D. KARUNAKARA RAO, AM: THERE ARE TWO APPEALS UNDER CONSIDERATION INVOLVING THE AYS 2009 - 10 AND 2010 - 11. GROUNDS IN BOTH THE APPEALS ARE IDENTICAL AND THEY RELATE TO THE RELIEF GIVEN BY THE CIT (A) ON THE ISSUES RELATING TO THE REJECTION OF BOOKS O F ACCOUNTS AND THE DISALLOWANCE OUT OF CASH PURCHASES OF LEATHERS. 2. AT THE OUTSET, LD COUNSEL FOR THE ASSESSEE BROUGHT OUR ATTENTION TO THE GROUNDS RAISED BY THE ASSESSEE IN ITS OWN CASE FOR THE AY 2006 - 07 AND THE DECISION OF THE TRIBUNAL VIDE ITA NO.573/M/2012 DATED 4.4.2014 , WHEREIN ONE OF US (AM) IS A PARTY TO THE SAID ORDER, AND ALSO THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE AYS 2007 - 08 AND 2008 - 09 IN APPEAL ITA NOS.574 AND 575/M/2012 , DATED 27.9.2013 AND MENTIONED THAT IN ALL THE ABOVE REFERRED APPEALS, AO REJECTED THE BOOKS OF ACCOUNT BY INVOKING THE PROVISIONS OF SECTION 145(3) OF THE ACT AND DISALLOWED 20% OF THE CASH PURCHASES FROM BUTCHERS AT DEONAR KA MELA. SIMILAR ISSUE IS RAISED BY THE REVENUE IN BOTH THE APPEALS UNDER CONSIDERATION . IN FACT, 2 WHILE REJECTING THE BOOKS OF ACCOUNTS IN THE YEARS UNDER CONSIDERATION, THE ABOVE REFERRED ASSESSMENTS (FOR AYS 2006 - 07 TO 2008 - 09) WERE CITED BY THE REVENUE AUTHORITIES. 3. BEFORE US, LD COUNSEL FOR THE ASSESSEE BROUGHT OUR ATTEN TION TO PARAS 1.2 AND 1.3 OF THE IMPUGNED ORDER DATED 12.11.2013 FOR THE AY 2009 - 2010 AND PARAS 5.1 AND 5.2 OF THE IMPUGNED ORDER DATED 20.12.2013, WHEREIN THE CIT (A) GRANTED RELIEF TO THE ASSESSEE, AND DEMONSTRATED THE FACT THAT THE CIT (A) RELIED HEAVIL Y ON THE ABOVE REFERRED ORDERS OF THE TRIBUNAL (SUPRA) FOR THE AY 2006 - 07 TO 2008 - 09 FOR GRANTING RELIEF TO THE ASSESSEE. IN FACT, CIT (A) EXTRACTED THE RELEVANT PARAS FROM THE SAID ORDER OF THE TRIBUNAL (SUPRA). 4. ON HEARING BOTH THE PARTIES AND ON PERU SAL OF THE SAID ORDERS OF THE CIT (A) FOR THE BOTH THE AYS UNDER CONSIDERATION, WE ARE OF THE OPINION THAT THE FACTS OF THE PRESENT APPEALS ARE COMPARABLE AND IDENTICAL TO THE FACTS OF THE AYS ADJUDICATED BY THE TRIBUNAL AND THEREFORE, THE RATIO LAID DOWN BY THE TRIBUNAL IN THE SAID ORDERS DATED 4.4.2014 AND 27.9.2013 (SUPRA) ARE APPLICABLE TO THE FACTS OF THE PRESENT APPEALS. THE FINDING OF THE SAID ORDER OF THE TRIBUNAL INCLUDE THAT THIS IS NOT A FIT CASE FOR REJECTION OF BOOKS OF ACCOUNT AND INVOKING TH E PROVISIONS OF SECTION 145(3) OF THE ACT AND THEREFORE, THERE IS NO CASE FOR MAKING ADDITION APPLYING THE FLAT RATE OF 20% OF THE CASH PURCHASES. CONSIDERING THE SAME, WE ARE OF THE OPINION THAT THE DECISION TAKEN BY THE CIT (A) IN BOTH THE YEARS UNDER C ONSIDERATION IS FAIR AND REASONABLE AND IT DOES NOT CALL FOR ANY INTERFERENCE. ACCORDINGLY, ALL THE GROUNDS RAISED BY THE REVENUE IN BOTH THE AYS 2009 - 2010 AND 2010 - 2011 ARE DISMISSED . 5. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE ARE DISMISSED . ORDER PRONOUNC ED IN THE OPEN COURT ON 3 0 T H SEPTEMBER, 2015. S D / - S D / - (SANDEEP GOSAIN) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 3 0 .9 .2015 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 3 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI