THOMAS ETORIN BUTTHELO, THANE V. ITO WARD-3(4), THANE, THANE

ITA 5068/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1187 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2017
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 09-08-2016
• Court: TRIBUNAL
• Department Lawyers: BEENA SANTOSH
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER ITA NO. 5068/M/2016 (AY 2010 - 2011 ) MR. THOMAS ETORIN BUTTHELO (PROP. STEPHIE GEAR MOTORS), FLAT NO.2, A - WING, NILKANT CHS, MAKHMALI TALAO, THANE - 400602. / VS. INCOME TAX OFFICER, WARD - 3(4), THANE. ./ PAN : ABJPB2047C ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : NONE / RESPONDENT BY : MS. BEENA SANTOSH, DR / DATE OF HEARING : 29.03.2017 / DATE OF PRONOUNCEMENT : 12 .04.2017 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 09.8.2016 IS AGAINST THE ORDER OF THE CIT (A) - 2, THANE DATED 27.5.2016 FOR THE ASSESSMENT YEAR 2010 - 2011. 2. IN THIS APPEAL, ASSESSEE RAISED THREE GROUNDS AND THEY REVOLVE AROUND THE SOLITARY ISSUE RELATING TO THE ADDITION ON ACCOUNT OF BOGUS PURCHASES INVOLVING THE INFORMATION WITH THE SA LES TAX DEPARTMENT. IN THE ASSESSMENT, AO MADE ADDITION OF RS. 1,67,490/ - INVOLVING M/S. MAHAVIR TRADER ON ACCOUNT OF BOGUS PURCHASES. MATTER TRAVELLED TO THE FIRST APPELLATE AUTHORITY. 3. DURING THE PROCEEDINGS BEFORE THE FIRST APPELLATE AUTHORITY, AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, CIT (A) CONFIRMED THE ENTIRE ADDITION INSTEAD OF RESTRICTING THE ADDITION TO GP RATE OF 12.5% AS ENVISAGED BY THE HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. SIMIT P. SHETH , ITA NO. 553 OF 2012, DATED 16.1.2013 READ WITH THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF NICKUNJ EXIMP ENTERPRISES PVT LTD VS. ACIT VIDE WRIT PETITION NO. 2860 OF 2012, DATED 18 TH JUNE, 2014. AGGRIEVED, ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 2 4. DURING THE PROCEEDINGS BEFORE THE TRIBUNAL, NONE APPEARED ON BEHALF OF THE ASSESSEE TO REPRESENT ITS CASE. CONSIDERING THE SETTLED NATURE OF THE ISSUE, I PROCEED TO ADJUDICATE THIS APPEAL WITH THE HELP OF THE LD DR WHO RELIED ON THE ORDERS OF THE AO AND THE CIT (A). 5. ON HEARING THE LD DR AND ON PERUSAL OF THE ORDERS OF THE REVENUE AUTHORITIES AS WELL AS THE CITED PRECEDENTS (SUPRA), I AM OF THE OPINION, AS PER THE RATIO LAID DOWN IN THE SAID JUDGMENTS (SUPRA) THE ADDITION SHOULD BE RESTRICTED TO THE FLAT GP RATE OF 12.5% OF THE ALLEGED BOGUS PURCHASES. ACCORDINGLY, I ORDER AND DIRECT THE AO TO RESTRICT THE ADDITION TO 12.5% OF THE SAID BOGUS PURCHASES. THUS, THE GROUNDS RAISED BY THE ASSESSEE ARE PARTLY ALLOWED . 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 1 2 T H APRIL, 2017. S D / - (D. KARUNAKARA RAO) ACCOUNTANT MEMBER MUMBAI ; 12.04.2017 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 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