INCOME TAX OFFICER-17(1)(2), MUMBAI V. SHRI BHAGWANJI KHIMJI NANDU, MUMBAI

ITA 5241/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 8890 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 09-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bogus purchase

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI , ! ,'# '$ BEFORE VIKAS AWASTHY, JUDICIAL MEMBER & SHRI N.K.PRADHAN, ACCOUNTANT MEMBER . 5241/ / 2019 (. . 2012-13 ) ITA NO.5241/MUM/2019(A.Y.2012-13) INCOME TAX OFFICER -17(1)(2), ROOM NO.109, KAUTILYA BHAVAN, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI 400 051. ...... ) / APPELLANT VS. SHRI BHAGWANJI KHIMJI NANDU, 85/89, 6 TH FLOOR, ARIHANT HSG. SOCIETY, BORA BAZAR STREET, FORT, MUMBAI 400 001. PAN: ADSPN7635B ..... !*/ RESPONDENT ASSESSEE BY : NONE REVENUE BY : MS. SMITA VERMA +* / DATE OF HEARING : 08/03/2021 ,-. +* / DATE OF PRONOUNCEMENT : 11/03/2021 '/ ORDER PER VIKAS AWASTHY, J.M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-55, MUMBAI ( IN SHORT THE CIT (A)) DATED 08/05/2019 FOR THE ASSESSMENT YEAR 2012-13. 2 . 5241/ / 2019 (. . 2012-13 ) ITA NO.5241/MUM/2019(A.Y.2012-13 2. MS. SMITA VERMA REPRESENTING THE DEPARTMENT SU BMITTED THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF PRINTING AND PUBLISHI NG. DURING THE PERIOD RELEVANT TO THE ASSESSMENT YEAR UNDER APPEAL, THE ASSESSEE MA DE BOGUS PURCHASES TO THE TUNE OF RS.3,58,015/- FROM M/S. PADMAVATI ENTERPRISES, A DECLARED HAWALA OPERATOR BY THE SALES TAX DEPARTMENT, GOVERNMENT OF MAHARASHTRA . DURING ASSESSMENT PROCEEDINGS, THE ASSESSEE FAILED TO PROVE GENUINE NESS OF THE PURCHASES AND THE AFORESAID DEALER. NO PURCHASES BILLS, TRANSPORTATI ON BILLS, DELIVERY CHALLAN OR CONFIRMATIONS FROM THE ALLEGED SUPPLIER WERE FURNIS HED BY THE ASSESSEE. THE ONLY DOCUMENT PRODUCED BY THE ASSESSEE BEFORE THE ASSESS ING OFFICER WAS LEDGER ACCOUNTS AND STATEMENTS INDICATING PAYMENTS MADE TH ROUGH BANKING CHANNEL. IN THE ABSENCE OF COGENT EVIDENCES THE ASSESSING OFFICER M ADE ADDITION OF THE ENTIRE BOGUS PURCHASES. IN FIRST APPEAL, THE CIT(A) RESTRICTED THE ADDITION TO 12.5%. HENCE, THE PRESENT APPEAL BY REVENUE. 3. WE HAVE HEARD THE SUBMISSIONS MADE BY LD.DEPARTM ENTAL REPRESENTATIVE AND HAVE EXAMINED ORDERS OF AUTHORITIES BELOW. THE ASS ESSEE HAS ALLEGEDLY MADE BOGUS PURCHASES FROM SUSPICIOUS HAWALA OPERATOR. THE ASS ESSEE HAS FAILED TO SUBSTANTIATE GENUINENESS OF THE DEALER AND THE ALLEGED BOGUS PUR CHASES. THE ASSESSING OFFICER MADE ADDITION OF ENTIRE SUCH PURCHASE. IN FIRST A PPEAL, THE CIT(A) AFTER EXAMINING THE FACTS OF THE CASE AND THE SUBMISSIONS OF THE AS SESSEE, RESTRICTED THE ADDITION TO RS.44,751/- I.E. BY ESTIMATING G.P @ 12.5% OF THE B OGUS PURCHASES. IT IS AN UNDISPUTED FACT THAT THE TURNOVER DECLARED BY THE A SSESSEE HAS NOT BEEN DISPUTED BY THE REVENUE. THE ESTIMATION OF PROFIT BY CIT(A) IS IN LINE WITH THE DECISION OF HON'BLE BOMBAY HIGH COURT IN THE CASE OF PCIT VS. PARAMS AKHTI DISTRIBUTORS PVT. LTD. IN INCOME TAX APPEAL NO.413 OF 2017 DECIDED ON 15/07/2 019. IN OUR CONSIDERED VIEW, THE ORDER OF CIT(A) WARRANTS NO INTERFERENCE AND WE CONCUR WITH THE SAME. THE APPEAL BY REVENUE IS DISMISSED BEING DEVOID OF MERI T. 3 . 5241/ / 2019 (. . 2012-13 ) ITA NO.5241/MUM/2019(A.Y.2012-13 4. IN THE RESULT, APPEAL BY REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THURSDAY, THE 11 TH DAY OF MARCH, 2021. SD/- SD/- (N.K.PRADHAN) (VIKAS AWAST HY) '# / ACCOUNTANT MEMBER / JUDICIAL MEMBER / MUMBAI, 0/ DATED 11/03/2021 VM , SR. PS (O/S) !*12'.* COPY OF THE ORDER FORWARDED TO : 1. ) / THE APPELLANT , 2. !* / THE RESPONDENT. 3. 3* ( )/ THE CIT(A)- 4. 3* CIT 5. 45!* , . . . , / DR, ITAT, MUMBAI 6. 56789 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI