INCOME TAX OFFICER 19(2)(4), MUMBAI V. MR. NARENDRA CHOWDHARY, MUMBIA

ITA 5267/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 8894 (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: 2011-2012
• 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 . 5267/ / 2019 (. . 2011-12 ) ITA NO.5267/MUM/2019(A.Y.2011-12) INCOME TAX OFFICER -19(2)(4), ROOM NO.217, 2 ND FLOOR, MATRU MANDIR, TARDEO, MUMBAI 400 007. ...... ) / APPELLANT VS. MR. NARENDRA CHOWDHARY, PAXAL STEEL, SHOP NO.5, GOVIND SEKSARIA BUILDING, 1A, 2 ND KHATTAR GALLI, THAKURDWAR ROAD, MUMBAI 400 002. PAN: AACPC3210E ..... !*/ RESPONDENT ASSESSEE BY : NONE REVENUE BY : SHRI SANJAY J. SETHI +* / 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)-4, MUMBAI ( IN SHORT THE C IT(A)) DATED 07/05/2019 FOR THE ASSESSMENT YEAR 2011-12. 2 . 5267/ / 2019 (. . 2011-12 ) ITA NO.5267/MUM/2019(A.Y.2011-12) 2. SHRI SANJAY J. SETHI REPRESENTING THE DEPARTME NT SUBMITTED THAT THE ASSESSEE HAS INDULGED IN OBTAINING BOGUS PURCHASE B ILLS AGGREGATING TO RS.95,69,998/- FROM VARIOUS (3) HAWALA OPERATORS. SINCE, THE ASSESSEE FAILED TO DISCHARGE HIS ONUS IN PROVING GENUINENESS OF THE PU RCHASES AND THE DEALERS, THE ASSESSING OFFICER HELD THAT THE PURCHASES ARE BOGUS AND MADE ADDITION OF RS.11,96,250/- BY ESTIMATING G.P @ 12.5% OF THE T OTAL BOGUS PURCHASES. THE ASSESSING OFFICER MADE AFORESAID ADDITION IN ACCORD ANCE WITH THE DECISION RENDERED IN THE CASE OF SIMITH P. SHETH, 356 ITR 45 1(GUJ). IN FIRST APPEAL, THE CIT(A) REDUCED THE G.P DECLARED BY THE ASSESSEE (5. 05%) FROM THE ESTIMATED ADDITION OF 12.5% MADE BY ASSESSING OFFICER. THUS, THE EFFECTIVE RATE OF ADDITION SUSTAINED BY CIT(A) WAS 7.45% 3. WE HAVE HEARD THE SUBMISSIONS MADE BY LD.DEPARTM ENTAL REPRESENTATIVE AND HAVE EXAMINED THE ORDERS OF AUTHORITIES BELOW. THE ASSESSEE IS ENGAGED IN TRADING OF FERROUS AND NON-FERROUS METALS. THE ASS ESSEE ALLEGEDLY MADE PURCHASES FROM DEALERS DECLARED AS HAWALA OPERATOR S BY THE SALES TAX DEPARTMENT, GOVERNMENT OF MAHARASTRA. IN THE ABSEN CE OF ANY COGENT EVIDENCES PRODUCED BY ASSESSEE TO PROVE GENUINENESS OF THE PU RCHASES AND THE DEALERS, THE ASSESSING OFFICER ESTIMATED PROFIT ON BOGUS PURCHAS ES AT 12.5% AND MADE ADDITION OF RS.11,96,250/-. IN FIRST APPELLATE PRO CEEDINGS, THE ASSESSEE FURNISHED DETAILS OF G.P RATIO IN THE IMPUGNED ASSESSMENT YEA R AND PRECEDING FOUR ASSESSMENT YEARS. THE CIT(A) FOLLOWING THE ORDER O F TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO.1639/MUM/2017 FOR ASSESSMENT YEAR 2 010-11 REDUCED THE G.P DECLARED BY ASSESSEE FROM G.P ESTIMATED BY THE ASSE SSING OFFICER I.E. 12.5% - 5.05% = 7.45%. WE DO NOT FIND ANY INFIRMITY IN THE IMPUGNED ORDER. THE SAME IS UPHELD AND APPEAL BY THE REVENUE IS DISMISSED BEING DEVOID OF MERIT. 3 . 5267/ / 2019 (. . 2011-12 ) ITA NO.5267/MUM/2019(A.Y.2011-12) 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