M/S. PACIFIC HARISH INDUSTRIES LTD., MUMBAI V. ASST. COMM. OF INCOME TAX - 10(3)(2), MUMBAI

ITA 5628/MUM/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9281 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 04-09-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ABHI RAMA KARTIKEYANLD
• Assessee Lawyers: AKSHAY B FURIA LD
• Keywords: Bogus purchase; Reassessment proceedings
• Section: 143(3); 147; 148

Judgement Text

ITA NO.5628/MUM/2017 M/S. PACIFIC HARISH INDUSTRIES LTD. ASSESSMENT YEAR :2009-10 1 IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.5628/MUM/2017 ( / ASSESSMENT YEAR:2009-10) M/S. PACIFIC HARISH INDUSTRIES LTD. 19, PARSI PANCHAYAT ROAD ANDHERI (E), MUMBAI-400 069. / VS. A CIT - 10(3)(2) MUMBAI. ./ ./PAN/GIR NO. AABCF-7264-P ( ! /APPELLANT ) : ( '#! / RESPONDENT ) APPELLANT BY : AKSHAY B. FURIA- LD. AR RESPONDENT BY : ABHI RAMA KARTIKEYAN - LD.DR / DATE OF HEARING : 20/03/2019 / DATE OF PRONOUNCEMENT : 03/04/2019 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2009-10 CONTEST THE ORDER OF L D. COMMISSIONER OF INCOME-TAX (APPEALS)-17, MUMBAI, [IN SHORT REFERRED TO AS CIT(A)], APPEAL NO. CIT(A)-17/IT-31/15-16 DATED 15/06/2017 QUA CONFIRMATION OF CERTAIN ADDITIONS ON ACCOUNT OF ALLEGED BOGUS PURCHASES. 2.1 BRIEF FACTS ARE THAT THE ASSESSEE BEING RESIDENT CORPORATE ENTITY STATED TO BE ENGAGED IN MANUFACTURING OF FABRICS WAS SUBJECTED TO ITA NO.5628/MUM/2017 M/S. PACIFIC HARISH INDUSTRIES LTD. ASSESSMENT YEAR :2009-10 2 REASSESSMENT PROCEEDINGS FOR IMPUGNED AY U/S 143(3) READ WITH SECTION 147 ON 20/02/2015 BY LD. ASSISTANT COMMISSIONER OF INCOME TAX-10(3)(2), MUMBAI [AO]. THE REASSESSMENT PROCEEDINGS GOT TRIGGERED PURSUANT TO RECEIPT OF CERTAIN INFORMATIO N FROM SALES TAX DEPARTMENT, MAHARASHTRA & INVESTIGATION WING THAT THE ASSESSEE STOOD BENEFICIARY OF ACCOMMODATION BILLS TO THE TUNE OF R S.18.03 LACS FROM 4 PARTIES, THE DETAILS OF WHICH HAVE BEEN EXTRACTED I N PARA 5.1 OF THE QUANTUM ASSESSMENT ORDER. ACCORDINGLY, NOTICE U/S 1 48 DATED 04/03/2014 WAS ISSUED TO THE ASSESSEE. THE ORIGINAL RETURN OF INCOME FILED BY THE ASSESSEE ON 30/09/2009 WAS PROCESSED U /S 143(1). 2.2 ALTHOUGH THE ASSESSEE FILED COPIES OF INVOICES, LEDGER EXTRACTS, BANK STATEMENTS ETC. IN SUPPORT OF THE TRANSACTIONS BUT FAILED TO PRODUCE ANY OF THE SUPPLIER TO CONFIRM THE TRANSACTIONS. DI SREGARDING THE ASSESSEES SUBMISSIONS, LD. AO DISALLOWED THE SAME AND ADDED THE SAME TO THE INCOME OF THE ASSESSEE. THE STAND OF LD . AO, UPON CONFIRMATION BY FIRST APPELLATE AUTHORITY IS UNDER APPEAL BEFORE US. 3. THE LD. AUTHORIZED REPRESENTATIVE FOR ASSESSEE [ AR], ON THE STRENGTH OF DOCUMENTS PLACED IN THE PAPER-BOOK PLEADED FOR REASONABLE ESTIMATION AGAINST THE SAME WHICH HAS BEEN OPPOSED BY LD. DR. 4. UPON CAREFUL CONSIDERATION, WE FIND THAT THE ASS ESSEE WAS IN POSSESSION OF PRIMARY PURCHASE DOCUMENTS AND THE BO OKS OF ACCOUNTS WERE SUBJECTED TO AUDIT. THERE COULD BE NO SALE WIT HOUT ACTUAL PURCHASE / CONSUMPTION OF MATERIAL KEEPING IN VIEW THE ASSES SEES NATURE OF BUSINESS. FURTHER, THE PAYMENTS TO THE SUPPLIERS WE RE THROUGH BANKING CHANNELS. AT THE SAME TIME, THE ASSESSEE COULD NOT SUPPLY THE ITA NO.5628/MUM/2017 M/S. PACIFIC HARISH INDUSTRIES LTD. ASSESSMENT YEAR :2009-10 3 WHEREABOUTS OF THE SUPPLIERS AND ALSO COULD NOT PRO DUCE ANY OF THE SUPPLIER TO CONFIRM THE TRANSACTIONS. KEEPING IN VI EW THE TOTALITY OF ALL THESE FACTORS, WE RESTRICT THE IMPUGNED ADDITIONS T O 12.5% OF ALLEGED BOGUS PURCHASE OF RS.18,03,072/- WHICH COMES TO RS.2,25,384/-. THE BALANCE ADDITION STANDS DELETED 5. THE APPEAL STANDS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 03 RD APRIL, 2019. SD/- SD/- (MAHAVIR SINGH) ( MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 03/04/2019 SR.PS, JAISY VARGHESE !'#$ # / COPY OF THE ORDER FORWARDED TO : 1. ! / THE APPELLANT 2. '#! / THE RESPONDENT 3. * ( ) / THE CIT(A) 4. * / CIT CONCERNED 5. +, '%- , - , / DR, ITAT, MUMBAI 6. ,./0 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.