RAKESH INDER BACHANI, MUMBAI V. ITO WD 30(3)(1), MUMBAI

ITA 4929/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1275 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-04-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 10-04-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 29-07-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ANUPAMA SINGLA
• Keywords: Bogus purchase
• Section: 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH G, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ITA NO.4929/M/2016 ASSESSMENT YEAR: 2009-10 MR. RAKESH INDER BACHANI, C-603, HIMACHAL BUILDING, S.V. ROAD, MALAD (WEST), MUMBAI 400 064 PAN: AEYPB3889C VS. INCOME TAX OFFICER, WARD 30(3)(1), C13, 6 TH FLOOR, PRATYAKSHKAR BHAVAN, BANDRA (EAST) MUMBAI - 400051 (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI HARESH P. SHAH, A.R. REVENUE BY : MISS ANUPAMA SINGLA, D.R. DATE OF HEARING : 10.04.2017 DATE OF PRONOUNCEMENT : 10.04.2017 O R D E R PER D.T. GARASIA, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 06.05.2016 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT Y EAR 2009-10. 2. THE SHORT FACTS OF THE CASE ARE AS UNDER: DURING THE YEAR UNDER CONSIDERATION, ASSESSEE BOOK ED THE TURNOVER AS PER TRADING, PROFIT & LOSS ACCOUNT IS RS.5,42,76,915/-. THE NET PROFIT WAS SHOWN AT RS.9,66,722/- AFTER DEBITING VARIOUS EXPENSES AND F ROM THE INFORMATION RECEIVED BY THE ASSESSING OFFICER (HEREINAFTER REFE RRED TO AS THE AO) THAT ASSESSEE HAS MADE PURCHASES FROM M/S. ATLAS ENTERPR ISE OF RS.58,240/- , M/S. JIGAN ENTERPRISES OF RS.2,93,956/-, M/S. ARIHANT CO RPORATION OF RS.8,45,419/-, M/S. SHREE AMAAYA ENTERPRISES OF RS.19,48,669/-, M/ S. SP.P. CORPORATION OF RS.21,17,180/-, M/S. L.P. TRADERS OF RS.22,11,934/- AND M/S. DEV ENTERPRISES ITA NO.4929/M/2016 MR. RAKESH INDER BACHANI 2 OF RS.29,30,023/- IN TOTALING RS.1,04,05,421/- WHOS E NAME APPEARS IN THE LIST OF BOGUS PURCHASES. AO ASKED ASSESSEE TO PRODUCE T HESE PARTIES FOR VERIFICATION. BUT ASSESSEE COULD NOT PRODUCE THESE PARTIES. THE PARTIES WERE DECLARED BY SALES TAX DEPARTMENT, GOVERNMENT OF MAH ARASHTRA AS BOGUS HAWALA DEALERS. THEREFORE, AO HAS MADE THE ADDITIO N OF 6% OF THE TOTAL BOGUS PURCHASES WHICH COMES TO RS.6,24,625/-. 3. THE MATTER BROUGHT TO LD. CIT(A) AND THE LD. CIT (A) CONFIRMED THE SAME. 4. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. WE FIND THAT THERE WAS NO COMPLIANCE FROM THE 7 PARTIES IN RESPO NSE TO NOTICE ISSUED BY AO UNDER SECTION 133(6) OF THE ACT. ASSESSEE FAILED T O PRODUCE THE PARTIES. NO ALTERNATIVE ADDRESS AS FILED IN RESPECT OF SAID PAR TIES. THE ENQUIRY AND INVESTIGATION CONDUCTED BY THE SALES TAX DEPARTMENT DECLARED THEM AS HAWALA DEALERS. THEREFORE, LD. CIT(A) HAS RELIED UPON THE DECISION OF VIJAY PROTEINS LTD. VS. CIT (2015) 58 TAXMANN.COM 44 (GUJ.) AND CI T VS. SIMIT P. SHETH (2013) 356 ITR 451 (GUJ.) AND HELD THAT ONLY PROFIT EMBEDDED CAN BE ADDED IN SUCH TRANSACTION OF PURCHASE AND SALES. THEREFORE, LD. CIT(A) IS JUSTIFIED IN HIS ACTION AND OUR INTERFERENCE IS NOT REQUIRED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 10.04.2017. SD/- SD/- (MANOJ KUMAR AGGARWAL) (D.T. GARASIA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 10.04.2017. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT ITA NO.4929/M/2016 MR. RAKESH INDER BACHANI 3 THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.