NIKHIL KISHORE GANDHI, MUMBAI V. ACIT 32(2)(4), MUMBAI

ITA 5372/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8633 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 18-08-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: N HEMALATHA
• Assessee Lawyers: RUCHI RATHOD
• Keywords: Bogus purchase

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) I.T.A. NO. 5372 /MUM/ 2017 (ASSESSMENT YEAR 20 10 - 11 ) SHRI NIKHIL KISHORE GANDHI E - 721, EKTA WOOD II CHS LTD., RAHEJA ESTATE KULUPWADI, BORIVALI (EAST) MUMBAI - 400 066. PAN : AABPG8349P V S . ACIT 32(2)(4) ROOM NO. 306 3 RD FLOOR, C - 11 PRAYAKSHKAR BHAVAN, BKC MUMBAI - 400 051. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY MS. RUCHI RATHOD DEPARTMENT BY MS. N. HEMALATHA DATE OF HEARING 2 .1 1 . 201 7 DATE OF PRONOUNCEMENT 2 . 11 . 201 7 O R D E R THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST ORDER DATED 16.6.2017 PASSED BY CIT(A) - 44, MUMBAI AND IT RELATES TO A.Y. 2010 - 11. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF CIT(A) IN CONFIRMING THE ADDITION RELATED TO BOGU S PURCHASES MADE BY THE AO. 2. I HEARD THE PARTIES AND PERUSED THE RECORD. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRADING IN IRON AND STEEL. CONSEQUENT TO THE INFORMATION RECEIVED FROM THE SALES TAX DEPARTMENT THAT CERTAIN DEALERS ARE INDULGING IN PRO VIDING ACCOMMODATION BILLS WITHOUT SUPPLYING MATERIAL AND UPON NOTICING THAT THE ASSESSEE HAS PURCHASED GOODS FROM THREE OF SUCH DEALERS AGGREGATING TO RS. 213.77 LAKHS, THE AO REOPENED THE ASSESSMENT FOR THE YEAR UNDER CONSIDERATION. AFTER CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE, THE AO MADE ADDITION OF RS. 12.5% OF THE VALUE OF PURCHASES WHICH AMOUNTED TO RS. 26.72 LAKHS. THE SAME WAS CONFIRMED BY CIT(A) AND HENCE, THE ASSESSEE HAS FILED THIS APPEAL BEFORE US. SHRI NIKHIL KISHORE GANDHI 2 3. AT THE TIME OF HEARING LD AR SUBMITTED THAT IDENTICAL ISSUE WAS CONSIDERED IN ASSESSEES OWN CASE BY THE DIVISION BENCH OF ITAT IN ITA NO. 315/MUM/2016 RELATING TO A.Y. 2009 - 10 AND THE TRIBUNAL, VIDE ITS ORDER DATED 4.8.2017, RESTRICTED THE ADDITION TO 5% OF THE VALUE OF BOGUS PURCHA SES. LD AR SUBMITTED THAT THE FACTS AND CIRCUMSTANCES OF THE CASE ARE IDENTICAL IN THIS YEAR ALSO AND ACCORDINGLY PRAYED THAT THE ADDITION SHOULD BE RESTRICTED TO 5%. 4. I HEARD LD DR AND PERUSED THE RECORD. I NOTICED THAT THE DIVISION BENCH OF THE TRIBUN AL HAS CONSIDERED AN IDENTICAL ISSUE IN THE ASSESSEES OWN CASE IN A.Y. 2009 - 10 AND HAS RESTRICTED ADDITION TO 5% OF THE VALUE OF BOGUS PURCHASES. CONSISTENT WITH THE VIEW TAKEN IN A.Y. 2009 - 10, I MODIFY THE ORDER PASSED BY CIT(A) AND DIRECT THE AO TO REST RICT THE ADDITION TO 5% OF THE VALUE OF PURCHASES. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 2 .11 . 201 7. SD/ - (B.R.BASKARAN) ACCOU NTANT MEMBER MUMBAI ; DATED : 2 / 11 / 20 1 7 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// ( ASSTT. REGISTRAR /SENIOR PS ) PS ITAT, MUMBAI