DCIT- 5(2)(1), MUMBAI V. IORA DIAMONDS PVT. LTD., MUMBAI

ITA 5620/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4035 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 04-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT PRATAP SINGH
• Assessee Lawyers: SHUBHAM PATE L
• Keywords: Bogus purchase
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ITA NO.5620/MUM/2018(A.Y.2011-12) DY. COMMISSIONER OF INCOME TAX 5(2)(1) ROOM NO.571, 5 TH FLOOR, AAYKAR BHAVAN, M.K.ROAD, MUMBAI 400 020 ... .. APPELLANT VS. M/S. IORA DIAMONDS PVT. LTD. EC 3010, BHARAT DIAMOND BOURSE, BANDRA KURLA COMPLEX, BANDRA (E) MUMBAI 400 051 PAN: AABCI7082G ...... RESPONDENT APPELLANT BY : SHRI AMIT PRATAP SINGH RESPONDENT BY : SHRI SHUBHAM PATE L DATE OF HEARING : 13/02/2020 DATE OF PRONOUNCEMENT : 14/02/2020 ORDER PER VIKAS AWASTHY, JM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX(APPEALS)-10 MUMBAI (IN SHORT THE CIT(A) ) DATE D 29/06/2018 FOR THE ASSESSMENT YEAR 2011-12. 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM T HE RECORDS ARE : THE ASSESSEE IS ENGAGED IN TRADING, POLISHING AND CUTTING OF DIAM ONDS. ON THE BASIS OF INFORMATION RECEIVED FROM INVESTIGATION WING OF THE DEPARTMENT, ASSESSMENT FOR ASSESSMENT YEAR 2010-11 WAS REOPENED ON THE GROUND THAT THE ASSESSE E HAS INDULGED IN OBTAINING BOGUS 2 ITA NO.5620/MUM/2018(A.Y.2011-12) PURCHASE BILLS AMOUNTING TO RS.15,72,654/- FROM M/S . AADI IMPEX. THE ASSESSING OFFICER ESTIMATED GP @ 12.5%ON SUCH BOGUS PURCHASES AND THU S, MADE ADDITION OF RS.1,96,582/-. AGGRIEVED AGAINST THE ASSESSMENT ORDER DATED 29/11/ 2016 PASSED UNDER SECTION 143(3) R.W.S 147 OF THE INCOME TAX ACT, 1961 (IN SHORT TH E ACT), THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) RESTRICTED THE ADDITION ON ACCOUNT OF BOGUS PURCHASES AT 8% OF SUCH PURCHASES I.E. RS.1,25,812/-. AGAINST THIS FINDING OF THE CIT(A), THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL . 3. SHRI SHUBHAM PATEL APPEARING ON BEHALF OF THE ASSESSEE VEHEMENTLY DEFENDED THE IMPUGNED ORDER AND PRAYED FOR DISMISSING THE APPEA L OF THE REVENUE. 4. PER CONTRA SHRI AMIT PRATAP SINGH REPRESENTING T HE DEPARTMENT SUBMITTED THAT ORDER OF ASSESSING OFFICER IN ESTIMATING GP AT 12.5% IS F AIR AND REASONABLE. THE LD. DEPARTMENTAL REPRESENTATIVE PRAYED FOR REVERSING THE FINDINGS OF CIT(A) AND RESTORING THE ADDITION MADE IN ASSESSMENT ORDER. 5. BOTH SIDES HEARD. ORDERS OF AUTHORITIES BELOW P ERUSED. THE SOLITARY ISSUE IN THIS APPEAL BY THE REVENUE IS AGAINST ESTIMATION OF GP O N BOGUS PURCHASES AT REDUCED RATE. THE ASSESSING OFFICER ESTIMATED GP @ 12.5% ON THE ALLEG ED BOGUS PURCHASES, THE FIRST APPELLATE AUTHORITY RESTRICTED THE ADDITION TO 8% OF THE BOGU S PURCHASES. AFTER EXAMINING THE FACTS, WE FIND THE ORDER OF CIT(A) REASONABLE. WE SEE NO INFIRMITY IN THE IMPUGNED ORDER, HENCE, THE SAME IS UPHELD. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D BEING DEVOID OF ANY MERIT. ORDER PRONOUNCED IN THE OPEN COURT ON FRIDAY THE 14 TH DAY OF FEBRUARY, 2020. SD/- SD/- (MANOJ KUMAR AGGARWAL) (VIKAS AWASTHY) ACCOUNTANT MEMBER JUD ICIAL MEMBER MUMBAI, DATED 14 /02/2020 VM , SR. PS(O/S) 3 ITA NO.5620/MUM/2018(A.Y.2011-12) 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./ASSTT. REGISTRAR) ITAT, MUMBAI