INCOME TAX OFFICER-5(1)(2), MUMBAI V. M/S BHARAT BRIGHT BARS PVT. LTD., MUMBAI

ITA 5256/MUM/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 3719 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 09-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: THARIAN OOMMEN
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (V I RTUAL COURT) , B BENCH MUMBAI BEFORE SHRI MAHAVIR SINGH, VP & SHRI M.BALAGANESH, AM ITA NO. 5256 /MUM/ 20 19 ( ASSESSMENT YEAR : 20 09 - 10 ) ITA NO. 5257 /MUM/ 2019 ( ASSESSMENT YEAR : 2010 - 11 ) & ITA NO. 5258 /MUM/ 2019 ( ASSESSMENT YEAR : 2011 - 12 ) ITO - 5(1)(2) R.NO.570, 5 TH FLOOR AAYAKAR BHAVAN M.K.ROAD, MUMBAI 400 020 VS. M/S. BHARAT BRIGHT BARS PVT. LTD., BLOCK NO.4, 1 ST FLOOR SARASWAT BHAWAN LAMINGTON ROAD MUMBAI 400 007 PAN/GIR NO. AACCM2937R (APP ELLANT ) .. (RESPONDENT ) REVENUE BY SHRI THARIAN OOMMEN ASSESSEE BY SHRI BHARAT KUMAR DATE OF HEARING 08 / 02 /202 1 DATE OF PRONOUNCEMENT 25 / 02 /202 1 / O R D E R PER MAHAVIR SINGH, VP: THESE APPEAL S IN ITA NO S . 5256/MUM/2019, 5257/MUM/2019 & 5258/MUM/2019 FOR A.Y. 2009 - 10, 2010 - 11 & 2011 - 12 ARISE OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 10, MUMBAI IN APPEAL NO. CIT(A) - 10,MUMBAI/10033/2018 - 19, CIT(A) - ITA NO . 5256/MUM/2019 TO 5258/MUM/2019 M/S. BHARAT BRIGHT BARS PVT. LTD., 2 10,MUMBAI/10034/2018 - 19 & CIT(A) - 10, MUMBAI/10035/2018 - 19 DATED 10/05/2019 (LD. CIT(A) IN SHORT) IN THE MATTER OF IMPOSITION OF PENALTY U/S.271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT) . COMMON ISSUES ARE INVOLVED IN ALL THE APPEALS, HENCE THEY ARE TAKEN UP TOGETHER AND DISPOSED OFF BY THIS ORDER FOR THE SAKE OF CONVENIENCE. 2. THE ONLY IDENTICAL ISSUE INVOLVED IN ALL THESE APPEALS IS AS TO WHETHER THE LD. CIT(A) WAS JUSTIFIED IN DELETING THE PENALTY LEVIED ON ACCOUNT OF ADDITION MADE ON AN ESTIMATED BASIS TOWARDS BOGUS PURCHASES. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE FIND THAT ASSESSEE IS A COMPANY ENGAGED IN THE BUSINESS OF PROCESSING AND MANUFACTURING OF BRIGHT STEEL BARS. WE FIND THAT THE LD. AO HAD MADE AN ADDITION ON ACCOUNT OF B OGUS PURCHASES ON AN ESTIMATED BASIS @35% WHICH WAS REDUCED TO 12.5% BY THE LD. CIT(A) FOR ALL THE ASSESSMENT YEARS UNDER CONSIDERATION. THEREAFTER, THE LD. AO LEVIED PENALTY ON THE ADDITIONS SUSTAINED @12.5% OF VALUE OF PURCHASES. WE FIND THAT THE LD. CIT (A) HAD GIVEN A CATEGORICAL FINDING THAT EXCEPT FOR REJECTION OF THE EXPLANATION FURNISHED BY THE ASSESSEE, THERE IS ABSOLUTELY NO MATERIAL TO SUSTAIN THE PLEA OF CONCEALMENT. WE FIND THAT THE LD. CIT(A) DELETED THE PENALTY ON THE GROUND THAT THE ADDITION WAS MADE ONLY ON AN ESTIMATED BASIS. 4. AGGRIEVED, THE R EVENUE IS IN APPEAL BEFORE US. ITA NO . 5256/MUM/2019 TO 5258/MUM/2019 M/S. BHARAT BRIGHT BARS PVT. LTD., 3 5. WE FIND THAT ON THE QUANTUM ADDITION RESTRICTED TO 12.5% BY THE LD. CIT(A), REVENUE HAD COME UP IN APPEAL BEFORE THIS TRIBUNAL AND THIS TRIBUNAL HAD CONFIRMED THE S TAND TAKEN BY THE LD. CIT(A). WE HOLD THAT NO PENALTY COULD SURVIVE ON AN ADDITION MADE ON ESTIMATED BASIS. RELIANCE IN THIS REGARD IS PLACED ON THE CO - ORDINATE BENCH DECISION OF THIS TRIBUNAL IN THE CASE OF ITO VS. MADHUBEN PRAKASH PAREKH IN ITA NO.350/MU M/2019 FOR A.Y.2010 - 11 DATED 29/01/2020. ACCORDINGLY, THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 6. IN THE RESULT, APPEALS OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED ON 25 / 02 /202 1 BY WAY OF PROPER MENTIONING IN THE NOTICE BOARD. SD/ - ( M.BALAGANESH ) SD/ - ( MAHAVIR SINGH ) ACCOUNTANT MEMBER VICE PRESIDENT MUMBAI ; DATED 25 / 02 / 2021 KARUNA , SR.PS ITA NO . 5256/MUM/2019 TO 5258/MUM/2019 M/S. BHARAT BRIGHT BARS PVT. LTD., 4 COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, M UMBAI 1. THE APPELLANT 2. THE RE SPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//