SHAH & SHAH WRITING ENTERPRISES, MUMBAI V. ITO, 30(3)(3), MUMBAI

ITA 516/MUM/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6659 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 01-02-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R K GUBGOTRA
• Assessee Lawyers: HIREN SHAH
• Keywords: Bogus purchase
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, ACCOUNTANT MEMBER ITA NO.516/MUM/2019 ( ASSESSMENT YEAR: 2010-11) SHAH & SHAH WRITING ENTERPRISES, 48, ADITYA INDUSTRIAL ESTATE, LINK ROAD, MINDSPACE, LINK ROAD, BEHIND EVERSHINE MALL, MALAD (WEST), MUMBAI- 400064. VS. I.T.O.-30(3)(3) PRATYAKSHAKAR BHAVAN, BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI- 400051. PAN/GIR NO. ABOFS 8644 P (APPELLANT ) .. (RESPONDENT ) ASSESSEE BY SHRI HIREN SHAH (AR) REVENUE BY SHRI R.K. GUBGOTRA (DR) DATE OF HEARING 03/02/2020 DATE OF PRONOUNCEMENT 04/02/2020 / O R D E R PER: R.C. SHARMA, A.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 16/11/2018 OF LD. CIT(A)-41, MUMBAI FOR THE A.Y. 20 10-11 IN THE MATTER OF ORDER PASSED U/S 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961 (IN SHORT, THE ACT). 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PER USED. FACTS IN BRIEF ARE THAT THE ASSESSEE IS ENGAGED IN TRADIN G OF VARIOUS TYPES OF IMPORTED AND INDIGENOUS BALL PEN REFILLS. ON GET TING INFORMATION REGARDING BOGUS PURCHASE, THE A.O. REOPENED THE ASS ESSMENT AND ITA NO. 516/MUM/2019 SHAH & SHAH WRITING ENTERPRISES VS ITO 2 ADDED 100% OF SUCH ALLEGED BOGUS PURCHASES IN ASSES SEES INCOME. BY THE IMPUGNED ORDER, THE LD. CIT(A) HAS CONFIRMED THE ACTION OF THE A.O.. 3. I HAVE HEARD THE RIVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE LD. AR OF THE ASSESSEE HAS INVITED OUR ATTENTION TO THE DOCUMENTS FILED BEFORE THE A.O. IN THE FORM OF PURCHASE BILLS, CONFIRMATION OF SUPPLIERS, BANK STATEMENT INDICATING PAYMENT SO MADE. IT IS ALSO CLEAR FROM T HE RECORD THAT NEITHER THE A.O. NOR THE LD. CIT(A) HAS REJECTED BO OKS OF ACCOUNT NOR THEY HAVE DECLINED THE CLAIM OF CORRESPONDING SALES HAVING BEEN ENTERED BY THE ASSESSEE, PROFIT ON WHICH WAS ALSO O FFERED IN THE RETURN OF INCOME. KEEPING IN VIEW THE FACTS AND CIR CUMSTANCES OF THE CASE AND VARIOUS JUDICIAL PRONOUNCEMENTS ON THIS IS SUE, I AM INCLINED TO RESTRICT THE ADDITION TO THE EXTENT OF 12.5% OF THE ALLEGED BOGUS PURCHASES. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART. ORDER PRONOUNCED IN THE OPEN COURT ON 04 TH FEBRUARY, 2020. SD/- (R.C.SHARMA) ACCOUNTANT MEMBER MUMBAI; DATED 04/02/2020 *RANJAN ITA NO. 516/MUM/2019 SHAH & SHAH WRITING ENTERPRISES VS ITO 3 COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//