HITESH MAFATLAL SHAH, MUMBAI V. ITO 25(3)(2), MUMBAI

ITA 4917/MUM/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 101152 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 23-09-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 27-06-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RADHE KATYAL NARANG

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI BEFORE S/SHRI B.R.BASKARAN , AM AND PAWAN SINGH , JM ./ I.T.A. NO . 4917/ MUM/20 1 3 ( / ASSESSMENT YEA R : 2007 - 08 ) SHRI HITESH MAFAT LAL SHAH, 34, SHREEJI KRUPA, ADUKIA ROAD, KANDIVALI(W), MUMBAI - 400067 / VS. INCOME TAX OFFICER - 25( 3 )(2), C - 11, 306, PRATYAKSHAKAR BHAVAN, BANDRA - KURLA COMPLEX, BANDRA (E), MUMBAI - 400051. ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN. : AACPS6843D / APPELLANT BY NONE / R EVENUE BY MS.RADHE KATYAL NARANG / DATE OF HEARING : 2 3 .9 . 201 5 / DATE OF PRONOUNCE MENT: 2 3 . 9. 201 5 / O R D E R P ER B R BASKARAN, AM : THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 06 - 03 - 2013 PASSED BY LD CIT(A) - 35, MUMBAI FOR THE ASSESSMENT YEAR 2007 - 08 CHALLENGING HIS DECISION ON THE FOLLOWING ISSUES: - ( A ) DISALLOWANCE OUT OF LABOUR CHARGES ( B ) ADDITION OUT OF SUNDRY CREDITORS BALANCE ( C ) ADDITION ON ACCOUNT OF UNDER INVOICING ( D ) DISALLOWANCE OUT OF GENERAL EXPENSES. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE EVEN THOUGH NOTICES WERE SENT BY RPAD ON EARLIER OCCASI ONS. HENCE, WE PROCEED TO DISPOSE OF THE APPEAL EX - PARTE, WITHOUT THE PRESENCE OF THE ASSESSEE. ITA NO. 4917 / MUM/20 1 3 2 3. WE HEARD LD D.R AND PERUSED THE RECORD. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURE OF STEEL UTENSILS UNDER HIS PROPRIETARY CONCERN NAMED M/S PERFECT INTERNATIONAL. BEFORE THE AO, THE ASSESSEE DID NOT FURNISH THE VARIOUS DETAILS CALLED FOR BY HIM. HENCE THE AO COMPLETED THE ASSESSMENT BY MAKING VARIOUS ADDITIONS. BEFORE LD CIT(A), THE ASSESSEE MADE SOME SUBMISSIONS AND HENCE THE LD CIT(A) CA LLED FOR A REMAND REPORT FROM THE AO. IN THE REMAND REPORT ALSO, THE AO SUBMITTED THAT THE ASSESSEE HAS FAILED TO FURNISH THE DETAILS. HENCE THE LD CIT(A) CONFIRMED ALL THE ADDITIONS MADE BY THE AO. HENCE, THE ASSESSEE HAS FILED THIS APPEAL BEFORE US. 4. WE NOTICE FROM THE ORDERS PASSED BY THE TAX AUTHORITIES THAT THE ASSESSEE HAS FAILED TO FURNISH THE DETAILS THAT WERE CALLED FOR BY THE AO. WITH REGARD TO THE EXPENSES CLAIMED, IT IS THE RESPONSIBILITY OF THE ASSESSEE TO SUBSTANTIATE THE CLAIM. SINCE THE ASSESSEE HAS FAILED TO FURNISH ANY DETAILS WITH REGARD TO THE LABOUR CHARGES AND OTHER EXPENSES CLAIMED BY HIM, THE AO WAS CONSTRAINED TO MAKE ADHOC DISALLOWANCE TO TAKE CARE OF DEFICIENCIES THEREIN. WITH REGARD TO THE ADDITION RELATING TO UNDER INVO ICING, WE NOTICE THAT THE ASSESSEE HAS SOLD MATERIALS TO ITS SISTER CONCERN AT A PRICE LESSER THAN THAT CHARGED TO OUTSIDERS. HENCE THE AO HAS MADE ADDITION AND THE ASSESSEE HAS FAILED TO OFFER CONVINCING EXPLANATIONS WITH REGARD THERETO. WITH REGARD TO THE SUNDRY CREDITORS, THE ASSESSEE HAS FAILED TO SHOW THAT THEY WERE REALLY OUTSTANDING AND HENCE THE AO HAS ASSESSED A PART OF SUNDRY CREDITORS BALANCE U/S 41(1) OF THE ACT. BEFORE LD CIT(A) ALSO, THE ASSESSEE HAS FAILED TO FURNISH THE DETAILS AND HENCE HE HAS CONFIRMED ALL THE ADDITIONS. BEFORE US ALSO, THE ASSESSEE HAS FAILED TO FURNISH ANY DETAILS AND HENCE WE DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER PASSED BY LD CIT(A) ON ALL THE ISSUES REFERRED ABOVE. ITA NO. 4917 / MUM/20 1 3 3 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. PRONOUNCED ACCORDINGLY ON 2 3 - 09 - 2015. 2 3RD SEPT , 2015 S D SD ( PAWAN SINGH ) ( B.R. BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI: 2 3RD SEPT , 2015 . . . ./ SRL , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - CONCERNED 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI CONCERNED 6. / GUARD FILE. / BY ORDER, T RUE COPY (ASSTT. REGI STRAR) , /ITAT, MUMBAI