ITO 21(1)(4), MUMBAI V. M/S CAMPBELL ELECTRONICS , MUMBAI

ITA 5511/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1768 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 23-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bogus purchase
• Section: 143(3); 133(6); 147

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI , BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 5511 //2019 (. . 2009-10 ) ITA NO.5511/MUM/2019 (A.Y.2009-10) ITO -21(1)(4), PIRAMAL CHAMBERS, 1 ST FLOOR, ROOM NO. 108, LALBAUG, PAREL, MUMBAI-400012 ...... ) / APPELLANT VS. M/S CAMPBELL ELECTRONICS UNIT NO. 9, PRABHADEVI INDL. ESTATE, V.S. MARG, PRABHADEVI, MUMBAI-400025. PAN: AACFC4531G . .... *,/ RESPONDENT ) -/ APPELLANT BY : SH. SUSHIL KUMAR MISHRA *, -/ RESPONDENT BY : NONE . / DATE OF HEARING : 30/03/2021 . / DATE OF PRONOUNCEMENT : 11/06/2021 / ORDER PER VIKAS AWASTHY, J.M: THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-33, MUMBAI [HEREINAFTER REFERR ED TO AS THE CIT(A)]' DATED 20.06.2019 FOR THE ASSESSMENT YEAR (AY) 2009- 10. 2 . 5511 //2019 (. .2009-10 ) ITA NO.5511/MUM/2019 (A.Y.2009-10) 2. THE BRIEF FACTS AS EMANATING FROM RECORDS ARE: T HE ASSESSEE IS A MANUFACTURER AND TRADER OF PHARMACEUTICAL TESTING E QUIPMENTS. THE ASSESSMENT FOR AY 2009-10 IN THE CASE OF ASSESSEE W AS RE-OPENED ON THE GROUND THAT THE ASSESSEE HAS OBTAINED BOGUS PURCHAS E BILLS AMOUNTING TO RS. 3,61,932/- FROM TWO ENTRY PROVIDERS I.E. (I) M/S HARDIK METAL CORPORATION RS. 2,599/- (II) APPLE STEEL RS. 3,59,333/- TOTAL RS. 3,61,932/- 3. DURING ASSESSMENT PROCEEDINGS, THE AO ISSUED NOT ICE UNDER SECTION 133(6) OF THE INCOME TAX ACT, 1961 [HEREINAFTER REF ERRED TO AS THE ACT] TO THE AFORESAID DEALERS, HOWEVER, THE SAME WERE RETURNED BACK UNSERVED BY THE POSTAL AUTHORITIES. THE AO MADE ADDITION OF ENTIRE ALLEGED BOGUS PURCHASES. AGAINST THE ASSESSMENT ORDER DATED 03.11.2014 PASSE D UNDER SECTION 143(3) READ WITH SECTION 147 OF THE ACT, THE ASSESSEE FILE D APPEAL BEFORE THE CIT(A). THE CIT(A) AFTER EXAMINING THE FACTS RESTRICTED THE ADDITION TO 25% OF THE SAID BOGUS PURCHASES. 4. SHRI SUSHIL KUMAR MISHRA REPRESENTING THE DEPART MENT VEHEMENTLY DEFENDED THE ASSESSMENT ORDER AND PRAYED FOR 100% D ISALLOWANCE OF BOGUS PURCHASES. IN SUPPORT OF HIS SUBMISSIONS, THE LD. D R PLACED RELIANCE ON THE DECISION OF HONBLE APEX COURT IN THE CASE OF N.K. PROTEINS LTD. [84 TAXMANN.COM 195]. 5. SUBMISSIONS MADE BY LD. DR HEARD, ORDERS OF AUTH ORITIES BELOW EXAMINED. UNDISPUTEDLY, THE ASSESSEE FAILED TO DISC HARGE ITS ONUS IN PROVING GENUINENESS OF THE DEALERS FROM WHOM ALLEGED BOGUS PURCHASES WERE MADE 3 . 5511 //2019 (. .2009-10 ) ITA NO.5511/MUM/2019 (A.Y.2009-10) AND THE GENUINENESS OF THE TRANSACTIONS. AT THE SAM E TIME, THE AO HAS ACCEPTED THE SALES TURNOVER DECLARED BY THE ASSESSE E. IT IS ONLY THE PROFIT ELEMENT EMBEDDED IN SUCH TRANSACTION THAT CAN BE BR OUGHT TO TAX, ENTIRE ALLEGED BOGUS PURCHASES CANNOT BE ADDED. [RE: PCIT VS. PARAMSHAKTI DISTRIBUTORS PVT. LTD. IN ITA NO. 413 OF 2017 DECID ED ON 15.07.2019 BY HONBLE BOMBAY HIGH COURT]. 6. I FIND NO INFIRMITY IN THE ORDER OF CIT(A) IN RE STRICTING THE DISALLOWANCE ON BOGUS PURCHASES TO 25%. THEREFORE, THE IMPUGNED ORD ER IS UPHELD AND THE APPEAL OF REVENUE IS DISMISSED, SANS MERIT. ORDER PRONOUNCED IN THE OPEN COURT ON FRIDAY, THE 1 1 TH DAY OF JUNE, 2021. SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, 3/ DATED: 11/06/2021 SK, PS * 4 * 4 * 4 * 4 COPY OF THE ORDER FORWARDED TO : 1. ) / THE APPELLANT , 2. *, / THE RESPONDENT. 3. 5 ( )/ THE CIT(A)- 4. 5 CIT 5. * , . . . , / DR, ITAT, MUMBAI 6. 9 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI