GANPATRAJ NEMAL JAIN, MUMBAI V. ITO 19 (1)(3), MUMBAI

ITA 5377/MUM/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 3337 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 18-09-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AKTHAR H ANSARI
• Keywords: Bogus purchase; Accommodation entries
• Section: 143(3); 143(1); 148; 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI R.C. SHARMA , ACCOUNTANT MEMBER ./ I.T.A. NO. 53 77 / MUM /201 8 ( / ASSESSMENT YEAR S : 20 09 - 1 0 ) GANPATRAJ NEMAL JAIN 10/1, BHANDARI STREET, 1 ST KUMBHARWADA, MUMBAI. / VS. ITO 19(1)(3) MUMBAI ./ ./ PAN/GIR NO. : AFNPJ0762Q ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI S.L. JAIN, AR / RESPONDENT BY : SHRI AKTHAR H ANSARI , DR / DATE OF HEARING 06 /11 /2019 / DATE OF PRONOUNCEMENT 13 /11 /2019 / O R D E R PER R.C. SHARMA(A.M.) THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) FOR THE A.Y 20 09 - 1 0 , IN THE MATTER OF ORDER PASSED U/S 143(3) R.W.S 147 OF THE IT ACT. 2. IN THIS APPEAL THE ASSESSEE IS AGGRIEVED FOR THE ADDITION OF 12.5% MADE BY THE A.O IN RESPECT OF ALLEGED BOGUS PURCHASES AND ALSO CHALLENGED VALIDITY OF REOPENING. ITA NO S . 53 77 / /MUM/2018. GANPATRAJ NEMAL JAIN , MUMBAI . - 2 - 3. I HAVE CONSIDERED THE RIVAL CONTENTIONS AND I FOUND THAT I N THIS CASE, THE RETURN OF INCOME FOR THE A.Y 2009 - 10 WAS FILED ON 04.09.2009 DECLARING TOTAL INCOME OF RS. 1,91,410/ - . THE R ETURN WAS PROCESSED U/S 143(1) OF THE ACT. SUBSEQUENTLY, THE AO RECEIVED INFORMATION FROM THE DGIT (INV) , MUMBAI WHO IN TURN RECEIVED INFORMATION FROM THE SALES TAX DEPARTMENT, MUMBAI ABOUT SOME HAWALA ENTRY PROVIDERS. THE INFORMATION WAS THAT THE SALES TAX DEPARTMENT HAS EXERCISED DUE DILIGENCE WHICH REVEALED THAT THE ASSESSEE IS INVOLVED IN TAKING ACCOMMODATION ENTRIES OF BOGUS PURCHASES FROM TEN PARTIES AMOUNTING TO RS. 63,35,118/ - . 4. AFTER MAKING FULL ENQUIRIES THE AO REACH ED TO THE CONCLUSION THAT ASSESSEE HAS TAKEN ACCOMMODATION BILL FOR PURCHASES WITHOUT HAVING DELIVERY. HE COMPUTED PROFIT ELEMENT ON SUCH PURCHASE AT 12.5% AND ADDED A SUM OF RS. 7,91,890/ - IN ASSESSEES INCOME. BY THE IMPUGNED ORDER ITA NO S . 53 77 / /MUM/2018. GANPATRAJ NEMAL JAIN , MUMBAI . - 3 - THE CIT(A) FURTHER G IVEN RELIEF TO THE EXTENT OF GROSS PROFIT ALREADY DECLARED BY THE ASSESSEE ON SUCH BOGUS TRANSACTIONS. THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 5. I HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND THAT ON THE BASIS OF PROPER INFORMATION FROM DGIT, THE A.O RECORDED THE REASONS TO BELIEVE THAT INCOME TO THE TUNE OF BOGUS PURCHASES HAS ESCAPED ASSESSMENT. THEREAFTER, GIVING DUE OPPORTUNITY TO THE ASSESSEE THE AO REOPENED ASSESSMENT BY ISSUE OF NOTICE U/S 148 OF THE ACT. I DO NOT F IND ANY INFIRMITY IN THE OR DER OF REOPENING THE ASSESSMENT. SO FAR AS MERIT OF ADDITION IS CONFIRMED, I FOUND THAT BOTH AO AND CIT(A) HAD DEALT WITH THE ISSUE AND AFTER APPLYING VARIOUS JUDICIAL PRONOUNCEMENTS THE CIT(A) HAS FURTHER GIVEN A RELIEF TO THE EXTENT OF GROSS PROFIT ALR EADY DECLARED BY THE ASSESSEE ON THIS ALLEGED PURCHASES. THE DETAILED FINDINGS SO RECORDED BY THE LOWER AUTHORITIES HAVE NOT BEEN CONTROVERTED BY THE LD. AR, BY BRINING ANY POSITIVE MATTER ITA NO S . 53 77 / /MUM/2018. GANPATRAJ NEMAL JAIN , MUMBAI . - 4 - ON RECORD. ACCORDINGLY, I DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF CIT(A) FOR UPHOLDING ADDITION OF GP AT 12.50% AND FURTHER GIVING RELIEF OF GP ALREADY DECLARED BY THE ASSESSEE. 6. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 13/ 11 /201 9 SD/ - ( R.C. SHARMA ) ACCOUNTANT MEMBER MUMBAI, DATED 13 /11 /20 1 9 KRK, PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) 4. ( ) / CONCERNED CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE COPY// 1 . / ( ASST. REGISTRAR) , / ITAT, MUMBAI ITA NO S . 53 77 / /MUM/2018. GANPATRAJ NEMAL JAIN , MUMBAI . - 5 - O T H E R M E M B E R