SHRI CHANDANMAL H BHANSALI, MUMBAI V. INCOME TAX OFFICER-19(1)(3), MUMBAI

ITA 5281/MUM/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 0379 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 13-08-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SMITA VERMA
• Keywords: Bogus purchase; Set aside
• Section: 48

Judgement Text

1 ITA NO.5281/MUM/2019 SHRI CHANDANMAL H BHANSALI IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC MUMBAI BEFORE SHRI VIKAS AWASTHY (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 5281/MUM/2019 ASSESSMENT YEAR: 2009-10 SHRI CHANDANMAL H BHANSALI 119/123, C/O BAGODA METAL (INDIA), DR.MG MAHIMTURA MARG, 3 RD KUMBHARWADA MUMBAI-400 004 VS. ITO-19(1)(3) TARDEO, GRANT ROAD MUMBAI-400 007 PAN NO. AACPB8568Q APPELLANT RESPONDENT REVENUE BY : MS.SMITA VERMA , DR ASSESSEE BY : NONE DATE OF HEARING : 09 /03/2021 DATE OF PRONOUNCEMENT : 1 6 / 0 3 / 2 0 2 1 ORDER PER N.K. PRADHAN, A.M. THE CAPTIONED APPEAL FILED BY THE ASSESSEE IS DIREC TED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-4, MUMB AI [IN SHORT CIT(A)] AND ARISES OUT OF THE ASSESSMENT COMPLETED U/S 143( 3) R.W.S. 147 OF THE INCOME TAX ACT 1961, (THE ACT). THOUGH THE CASE WAS FIXED FOR HEARING ON 09.03.2021 NEITHER THE ASSESSEE NOR HIS AUTHORIZED REPRESENTATIVE (AR) APP EARED BEFORE THE TRIBUNAL ON ABOVE DATES. AS THERE IS NON-COMPLIANCE BY THE A SSESSEE, WE ARE PROCEEDING 2 ITA NO.5281/MUM/2019 SHRI CHANDANMAL H BHANSALI TO DISPOSE-OFF THIS APPEAL AFTER EXAMINING THE MA TERIALS AVAILABLE ON RECORD AND AFTER HEARING THE LD. DEPARTMENTAL REPRESENTATI VE (DR). 2. BRIEFLY STATED THAT THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED HIS RETURN OF INCOME FOR THE AY 2009-10 ON 22.09.2009 D ECLARING TOTAL INCOME OF RS.4,55,506/-. THE ASSESSEE DEALS IN FERROUS & NON- FERROUS METALS. ON RECEIPT OF INFORMATION FROM THE SALES TAX DEPARTMENT, GOVERNME NT OF MAHARASHTRA THAT THE ASSESSEE HAD OBTAINED BOGUS PURCHASE BILLS OF R S.80,66,926/- FROM NINE PARTIES, ASSESSING OFFICER (AO) ISSUED NOTICE U/S.1 48 FOR REOPENING THE ASSESSMENT. IN RESPONSE TO IT, THE ASSESSEE FILED A REPLY BEFORE THE AO DATED 26.03.2014 STATING THAT THE ORIGINAL RETURN FILED O N 22.09.2009 BE TREATED AS RETURN FILED IN RESPONSE TO NOTICE U/S 148. THE AO HAS RECORDED THAT THE ASSESSEE WAS ASKED TO PRODUCE BOOKS OF ACCOUNTS, BI LLS AND VOUCHERS FOR VERIFICATION. THE ASSESSEE COULD FILE SOME DETAILS BEFORE THE AO. HOWEVER, THE ASSESSEE COULD NOT LINK THE PURCHASES WITH CORRESPO NDENCE SALES. FURTHER, IT IS NOTED BY HIM THAT THE ASSESSEE FAILED TO PRODUCE T HE BOOKS OF ACCOUNTS BEFORE HIM FOR THE VERIFICATION. IN VIEW OF THE ABOVE FACT S, THE AO ESTIMATED THE PROFIT @12.5% ON THE DISPUTED PURCHASES OF RS.80,66,926/-, WHICH COMES TO RS.10,08,366/-. 3. IN APPEAL, THE LD.CIT(A) AGREED WITH THE ESTIMAT ION @12.5% MADE BY THE AO. 4. BEFORE US, THE LD.DR SUBMITS THAT THE ORDER PASS ED BY THE LD.CIT(A) BE AFFIRMED AS IT IS REASONABLE, CONSIDERING THE F ACTS AND CIRCUMSTANCES OF THE CASE. 3 ITA NO.5281/MUM/2019 SHRI CHANDANMAL H BHANSALI WE HAVE HEARD THE LD. DR AND PERUSED THE RELEVANT MATERIALS AVAILABLE ON RECORD. AS MENTIONED EARLIER, THE AO H AS RECORDED THAT THE ASSESSEE COULD FILE FEW DETAILS BEFORE HIM; HOWEVER , THE ASSESSEE FAILED TO LINK THE PURCHASES WITH CORRESPONDING SALES. THE NATURE OF THE BUSINESS OF THE ASSESSEE IS DEALING IN FERROUS & NON-FERROUS METAL S. CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE, WE SET ASIDE THE ORDER O F THE LD.CIT(A) AND DIRECT THE AO TO ESTIMATE THE PROFIT @6% ON THE DISPUTED P URCHASES OF RS.80,66,926/- 5. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 16/03/2021. SD/- SD/- (VIKAS AWASTHY) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED: 16/03/2021 THIRUMALESH SR. P.S. COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSISTANT REGISTRAR) ITAT, MUMBAI