INCOME TAX OFFICER-20(3)(1), MUMBAI V. SHRI RAJIV KIRAN MEHTA, MUMBAI

ITA 5647/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3775 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 30-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bogus purchase
• Section: 143(3); 147; 6

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI , BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 5647 //2019 (. . 2009-10 ) ITA NO.5647/MUM/2019 (A.Y.2009-10) ITO-20(3)(1), R. NO. 622, 6 ST FLOOR, PIRAMAL CHAMBERS, LALBAUG, PAREL, MUMBAI-400012 ...... ) / APPELLANT VS. SHRI RAJIV KIRAN MEHTA, 31, ANIL KUNJ, BEHIND ARORA CINEMA, MANIKRAO LOTLIKAR MARG, KINGS CIRCLE, MUMBAI-400019. PAN: AIAPM2017R ..... *,/ RESPONDENT ) -/ APPELLANT BY : SHRI SUSHIL KUMAR MISHRA *, -/ RESPONDENT BY : NONE . / DATE OF HEARING : 30/03/2021 . / DATE OF PRONOUNCEMENT : 28/05/2021 / ORDER PER VIKAS AWASTHY, J.M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-32, MUMBAI [HEREINAFTER REF ERRED TO AS THE CIT(A)] ' DATED 19.06.2019 FOR THE ASSESSMENT YEAR (AY) 2009- 10. 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM TH E RECORDS ARE: THE ASSESSMENT FOR AY 2009-10 IN THE CASE OF ASSESSEE W AS RE-OPENED ON THE BASIS OF 2 . 5647 //2019 (. .2009-10 ) ITA NO.5647/MUM/2019 (A.Y.2009-10) INFORMATION RECEIVED FROM THE SALES TAX DEPARTMENT, GOVERNMENT OF MAHARASHTRA THAT THE ASSESSEE HAS OBTAINED BOGUS PU RCHASE BILLS AMOUNTING TO RS. 1,12,888/- FROM M/S MAHAVIR ENTERPRISES DURING THE PERIOD RELEVANT TO AY UNDER APPEAL. DURING ASSESSMENT PROCEEDINGS, THE AS SESSEE FAILED TO DISCHARGE HIS ONUS IN PROVING GENUINENESS OF THE PURCHASES AND AU THENTICITY OF THE DEALER. THE AO MADE ADDITION OF THE ENTIRE SUCH PURCHASES. AGAI NST THE ASSESSMENT ORDER DATED 30.11.2015 PASSED UNDER SECTION 143(3) READ W ITH SECTION 147 OF THE INCOME TAX ACT, 1961 [HEREINAFTER REFERRED TO AS T HE ACT], THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) AFTER EXAMININ G THE FACTS AND CONSIDERING THE GROSS PROFIT (GP) RATIO DECLARED BY THE ASSESSEE RE STRICTED THE ADDITION TO 6% OF THE BOGUS PURCHASES. NOW, THE REVENUE IS IN APPEAL AGAINST THE RELIEF GRANTED BY THE CIT(A). 3. SHRI SUSHIL KUAMR MISHRA REPRESENTING THE DEPART MENT VEHEMENTLY DEFENDED THE ASSESSMENT ORDER AND PRAYED FOR REVERS ING THE FINDINGS OF CIT(A). THE LD. DR SUBMITTED THAT THE ASSESSEE HAS NOT BEEN ABLE TO PROVE GENUINENESS OF THE PURCHASES AND DEALER, THEREFORE, THE AO RIGHTLY ADDED ENTIRE BOGUS PURCHASES. 4. SUBMISSIONS MADE BY LD. DR HEARD, ORDERS OF AUTH ORITIES BELOW EXAMINED. THE ASSESSEE IS ENGAGED IN TRADING OF WELDING ELECT RODES AND ALLIED PRODUCTS. THE ASSESSEE ALLEGEDLY OBTAINED BOGUS PURCHASE BILLS AM OUNTING TO RS. 1,12,588/- FROM A DEALER DECLARED AS HAWALA OPERATOR BY THE SA LES TAX DEPARTMENT, GOVERNMENT OF MAHARASHTRA. UNDISPUTEDLY, THE ASSESS EE FAILED TO DISCHARGE HIS ONUS IN PROVING GENUINENESS OF THE PURCHASES AND TH E DEALER. IT IS ALSO A MATTER OF FACT THAT THE SALES TURNOVER DECLARED BY THE ASSESS EE HAS NOT BEEN DISPUTED BY THE 3 . 5647 //2019 (. .2009-10 ) ITA NO.5647/MUM/2019 (A.Y.2009-10) AO. WITHOUT PURCHASES, THERE CANNOT BE SALES, THERE FORE, IT IS ONLY THE PROFIT ELEMENT EMBEDDED IN SUCH TRANSACTIONS, THAT HAS TO BE BROUGHT TO TAX (RE: PCIT V/S PARAMSHAKTI DISTRIBUTORS PVT. LTD., ITA NO. 413 /2017 DECIDED ON 15.07.2019). THE CIT(A) AFTER CONSIDERING GROSS PROFIT (GP) DECL ARED BY THE ASSESSEE HAS MADE ADDITION ESCAPED PROFIT ON BOGUS PURCHASES AT 6%. I CONCUR WITH THE FINDINGS OF CIT(A), HENCE, IMPUGNED ORDER IS UPHELD AND THE APP EAL OF REVENUE IS DISMISSED, SANS MERIT. ORDER PRONOUNCED IN THE OPEN COURT ON FRIDAY , THE 28 TH DAY OF MAY, 2021. SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, 3/ DATED: 28/05/2021 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