INCOME TAX OFFICER-25(3)(3), MUMBAI V. RAMESH MADHAVJI DOSHI, MUMBAI

ITA 5665/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3774 (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: 2011-2012
• Appeal Filed On: 30-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bogus purchase
• Section: 143(3); 147

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI , BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 5665 //2019 (. . 2011-12 ) ITA NO.5665/MUM/2019 (A.Y.2011-12) ITO-25(3)(3), R. NO. 233, 2 ND FLOOR, KAUTILYA BHAWAN, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI-400051 ...... ) / APPELLANT VS. RAMESH MADHAVJI DOSHI, 402, CASABLANCA, M.G.ROAD, OPP. SHAAN TALKIES, VILE PARLE (E), MUMBAI-400059. PAN: AABPD8633M ..... *,/ 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)-53, MUMBAI [HEREINAFTER REF ERRED TO AS THE CIT(A)] ' DATED 14.06.2019 FOR THE ASSESSMENT YEAR (AY) 2011- 12. 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM RE CORDS ARE: THE ASSESSEE IS ENGAGED IN MANUFACTURING AND TRADING IN IRON & STEE L. ON THE BASIS OF INFORMATION 2 . 5665 //2019 (. .2011-12 ) ITA NO.5665/MUM/2019 (A.Y.2011-12) RECEIVED FROM THE SALES TAX DEPARTMENT, GOVERNMENT OF MAHARASHTRA, THE ASSESSMENT IN THE CASE OF ASSESSEE FOR AY 2011-12 W AS RE-OPENED. AS PER INFORMATION RECEIVED, THE ASSESSEE HAD OBTAINED BOG US PURCHASE BILLS AMOUNTING TO RS. 39,69,888/- FROM M/S JINDUTT STEEL, A DECLAR ED HAWALA OPERATOR BY THE SALES TAX DEPARTMENT, GOVERNMENT OF MAHARASHTRA. DURING A SSESSMENT PROCEEDINGS, THE ASSESSEE COULD NOT PROVE GENUINENESS OF THE DEA LERS AND THE TRAIL OF GOODS. NO STOCK REGISTER, LORRY RECEIPT, ETC. WERE FURNISH ED BY THE ASSESSEE. THE AO ACCEPTED THE SALES AND ESTIMATED GROSS PROFIT (GP) ON BOGUS PURCHASES @ 25%. THUS, THE AO MADE ADDITION OF RS. 9,92,472/- ON ACC OUNT OF BOGUS PURCHASE TRANSACTIONS. AGGRIEVED BY THE ASSESSMENT ORDER DATED 17.03.2016 PASSED UNDER SECTION 143(3) READ WITH SECTION 147 OF THE INCOME TAX ACT, 1961 [HEREINAFTER REFERRED TO AS THE ACT], THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). IN FIRST APPELLATE PROCEEDINGS, THE CIT(A) RESTRICTED THE DISALLOWANCE ON BOGUS PURCHASE BY ESTIMATING GP AT 12.5%. HENCE, THE PRESENT APPEAL B Y THE REVENUE. 3. SHRI SUSHIL KUAMR MISHRA REPRESENTING THE DEPART MENT VEHEMENTLY DEFENDED THE ASSESSMENT ORDER AND PRAYED FOR REVERS ING THE FINDINGS OF CIT(A). 4. SUBMISSIONS MADE BY LD. DR HEARD, ORDERS OF AUTH ORITIES BELOW EXAMINED. UNDISPUTEDLY, THE ASSESSEE FAILED TO PROVE GENUINEN ESS OF THE PURCHASES AND THE DEALERS. AT THE SAME TIME, THE AO ACCEPTED THE SALE S DECLARED BY THE ASSESSEE. THE AO ESTIMATED GP ON BOGUS PURCHASES AT 25%. IN F IRST APPEAL THE CIT(A) RESTRICTED THE SAME TO 12.5%. I AM OF CONSIDERED VI EW THAT DISALLOWANCE MADE BY THE AO IN RESPECT OF BOGUS PURCHASE WAS ON THE HIGH ER SIDE. THE GP ESTIMATED AT 12.5% BY THE CIT(A) IS REASONABLE AND THE SAME HAS BEEN ACCEPTED BY THE 3 . 5665 //2019 (. .2011-12 ) ITA NO.5665/MUM/2019 (A.Y.2011-12) ASSESSEE. I SEE NO REASON TO INTERFERE WITH THE FIN DINGS OF CIT(A). THEREFORE, THE IMPUGNED ORDER IS UPHELD AND THE APPEAL OF REVENUE IS DISMISSED. 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