KALPSARU DIAMONDS, MUMBAI V. ITO 19 (2)(2), MUMBAI

ITA 5082/MUM/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0655 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 04-09-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AKHTAR H ANSARILD
• Assessee Lawyers: PRAMOD KUMAR PARIDALD
• Keywords: Accommodation entries
• Section: 143(3); 143(2); 148

Judgement Text

1 ITA NO.5082/MUM/2018 KALPSARU DIAMONDS ASSESSMENT YEAR 2010-11 - IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.5082/MUM/2018 ( / ASSESSMENT YEAR:2010-11 ) KALPSARU DIAMONDS JW8040, BHARAT DIAMOND BOURSE BANDRA KURLA COMPLEX BANDRA (E), MUMBAI-400 051. / VS. INCOME TAX OFFICER - 19(2)( 2 ) MATRU MANDIR GRANT ROAD(W) MUMBAI 400 007. !'#$ ./ ./PAN/GIR NO. AAAFK 6960 H ( '# /APPELLANT ) : ( $%'# / RESPONDENT ) REVENUE BY : SHRI AKHTAR H. ANSARI-LD.DR ASSESSEE BY : SHRI PRAMOD KUMAR PARIDA-LD. AR / DATE OF HEARING : 17/09/2019 / DATE OF PRONOUNCEMENT : 17/09/2019 / O R D E R PER BENCH: - 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2010-11 CONTEST THE ORDER OF LD. COMMISSI ONER OF INCOME-TAX (APPEALS)-29, MUMBAI, [IN SHORT REFERRED TO AS CIT( A)], APPEAL NO. CIT(A)- 29/IT-308/ITO-19(2)(2)/2017-18 D ATED 03/05/2018 QUA CONFIRMATION OF 2 ITA NO.5082/MUM/2018 KALPSARU DIAMONDS ASSESSMENT YEAR 2010-11 CERTAIN ADDITIONS ON ACCOUNT OF ALLEGED BOGUS PURCH ASES. THE ASSESSEE HAS ALSO CONTESTED THE VALIDITY OF REASSESSMENT PRO CEEDINGS. 2.1 FACTS ON RECORD WOULD REVEAL THAT THE ASSESSEE BEING RESIDENT FIRM STATED TO BE ENGAGED IN TRADING OF DIAMONDS WAS ASS ESSED U/S 143(3) R.W.S 147 OF INCOME TAX ACT, 1961 ON 28/09/2016 WHEREIN T HE ASSESSEE WAS SADDLED WITH ESTIMATED ADDITIONS OF RS.10.10 LACS O N ACCOUNT OF NON- GENUINE PURCHASES. PURSUANT TO RECEIPT OF CERTAIN INFORMATION FROM DGIT (INVESTIGATION) DURING SEARCH OPERATIONS ON BHANWAR LAL JAIN GROUP, IT TRANSPIRED THE ASSESSEE MADE PURCHASES OF RS.202.16 LACS FROM VARIOUS ENTITIES OF THE SAID GROUP. THE GROUP WAS STATED TO BE ENGAGED IN PROVIDING ACCOMMODATION ENTRIES WITHOUT CARRYING OUT ANY REAL BUSINESS ACTIVITIES. CONSEQUENTLY, AS PER DUE PROCESS OF LAW, THE CASE W AS REOPENED VIDE ISSUANCE OF NOTICE U/S 148 ON 15/03/2016 FOLLOWED B Y STATUTORY NOTICES U/S 143(2) & 142(1), WHEREIN THE ASSESSEE WAS DIRECTED TO SUBSTANTIATE THE PURCHASES. 2.2 ALTHOUGH THE ASSESSEE DEFENDED THE PURCHASES, H OWEVER, RELYING UPON INFORMATION GATHERED DURING SEARCH OPERATIONS, LEARNED AO REJECTED ASSESSEES BOOKS OF ACCOUNTS U/S 145(3) AND MADE ES TIMATED ADDITIONS OF 5% AGAINST THESE PURCHASES. THE LEARNED FIRST APPEL LATE AUTHORITY, WHILE REJECTING THE LEGAL GROUNDS, REDUCED THE ESTIMATION TO 3% AFTER CONSIDERING FACTUAL MATRIX. STILL AGGRIEVED, THE ASSESSEE IS UN DER APPEAL BEFORE US. IT APPEARS THAT THE REVENUE HAS NOT APPEALED ANY FURTH ER. 3. WE HAVE HEARD AND CONSIDERED THE RIVAL SUBMISSIO NS. 3 ITA NO.5082/MUM/2018 KALPSARU DIAMONDS ASSESSMENT YEAR 2010-11 4. SO FAR AS THE LEGAL GROUNDS ARE CONCERNED, WE FI ND NO SUBSTANCE IN THE SAME SINCE THE LD. AO WAS CLINCHED WITH SPECIFI C INFORMATION REGARDING ESCAPEMENT OF INCOME IN THE HANDS OF THE ASSESSEE. NOTHING MORE WAS REQUIRED AT THIS STAGE. THE LEGAL GROUNDS STAND REJ ECTED. 5. SO FAR AS THE ESTIMATION IS CONCERNED, WE FIND T HE LEARNED AO ESTIMATED THE ADDITIONS TO 5% WHICH WAS REDUCED TO 3% KEEPING IN VIEW THE ASSESSEES NATURE OF BUSINESS. UPON DUE CONSIDERATI ON, NO INFIRMITY COULD BE FOUND IN THE ESTIMATION MADE BY LEARNED FIRST AP PELLATE AUTHORITY. THEREFORE, THE GROUNDS, ON MERITS, ALSO STANDS REJE CTED. 6. THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH SEPTEMBER, 2019. SD/- SD/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 17/09/2019 SR.PS:-JAISY VARGHESE () *) / COPY OF THE ORDER FORWARDED TO : 1. '# / THE APPELLANT 2. $%'# / THE RESPONDENT 4 ITA NO.5082/MUM/2018 KALPSARU DIAMONDS ASSESSMENT YEAR 2010-11 3. , ( ) / THE CIT(A) 4. , / CIT CONCERNED 5. -. $'/ , / , / DR, ITAT, MUMBAI 6. .012 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.