M/S.MEDICURE CHEMIST, MUMBAI V. JT CIT RANGE-26(2), MUMBAI

ITA 5283/MUM/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0922 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 12-09-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: AKHTAR HANSARI
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'SMC' BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA NO. 5283/MUM/2018 (ASSESSMENT YEAR: 2012-13) M/S. MEDICURE CHEMIST LION TARACHAND HOSPITAL JAIN SOCIETY, SION (W) MUMBAI 400022 VS. JCIT, RANGE 26(2) PRATYAKSHYA KAR BHAVAN BKC, BANDRA (E) MUMBAI 400051 PAN AAJFM3336Q APPELLANT RESPONDENT APPELLANT BY: SHRI GYANESHWAR KATARAM RESPONDENT BY: SHRI AKHTAR H. ANSARI DATE OF HEARING: 03.10.2019 DATE OF PRONOUNCEMENT: 20.12.2019 O R D E R PER SHAMIM YAHYA, AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE CIT(A)-38, MUMBAI DATED 4 TH APRIL, 2018 AND PERTAINS TO A.Y. 2012-13. 2. THE ISSUE RAISED IS THAT THE LEARNED CIT(A) ERRE D IN UPHOLDING THE DISALLOWANCE OF ` 99,936/- ON ACCOUNT OF PURCHASE HELD TO BE BOGUS. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E HAS MADE THE AFORESAID PURCHASES AND DEBITED THE SAME TO FURNITU RE & FIXTURES AND CLAIMED DEPRECIATION OF ` 4,997/- ONLY. UPON HOLDING THE PURCHASES TO BE BOGUS THE ENTIRE AMOUNT OF ` 99,936/- WAS DISALLOWED AND ADDED TO THE INCOME OF THE ASSESSEE. 4. AGAINST THIS ORDER THE ASSESSEE HAD APPEALED BEF ORE US. UPON HEARING BOTH THE COUNSELS AND PERUSING THE RECORDS, WE FIND THAT WHEN THE CLAIM IN THE PROFIT & LOSS ACCOUNT WAS ONLY A DEBIT OF ` 4,997/- ON ACCOUNT OF DEPRECIATION THERE WAS NO JUSTIFICATION WHATSOEVER OF DISALLOWING AND ITA NO. 5283/MUM/2018 M/S. MEDICURE CHEMIST 2 ADDING THE SUM OF ` 99,936/- DEBITED TO FURNITURE AND FIXTURES AS ADDIT ION TO THE PROFIT & LOSS ACCOUNT. 5. IN THIS VIEW OF THE MATTER WE MODIFY THE ORDER O F THE AUTHORITIES BELOW AND HOLD THAT THE DISALLOWANCE SHOULD BE RESTRICTED TO THE CLAIM OF DEPRECIATION OF ` 4,997/- ON THE PURCHASES OF FIXED ASSETS HELD TO BE BOGUS. 6. IN THE RESULT THIS APPEAL FILED BY THE ASSESSEE STANDS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH DECEMBER, 2019. (PAWAN SINGH) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 20 TH DECEMBER, 2019 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -38, MUMBAI 4. THE PR.CIT 26, MUMBAI 5. THE DR, SMC BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.