M/S SIMONI GEMS, Mumbai V. DY. CIT CC 2 (1), Mumbai

ITA 5686/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3068 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 03-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RASESH SHAH
• Keywords: Bogus purchase; Search and seizure; Accommodation entries; Reassessment proceedings
• Section: 13

Judgement Text

, , !'# IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 5686 / / 2019 ( '. 2011-12 ) ITA NO. 5686/MUM/2019 (A.Y 2011-12) M/S. SIMONI GEMS, 36, SHREEJI ARCADE, TATA ROAD NO.1 & 2, OPERA HOUSE, MUMBAI 400 004. PAN: AAKFS 8874J ...... ) / APPELLANT ' VS. DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(1), PRATISHTHA BHAVAN, OLD CGO BLDG., MK ROAD, MUMUBAI 400 020. ..... * +!/ RESPONDENT ),/ APPELLANT BY : SHRI RASESH SHAH * +!,/ RESPONDENT BY : SHRI SUSHIL KUMAR MISHRA '- + / DATE OF HEARING : 31/03/2021 ./0 - + / DATE OF PRONOUNCEMENT : 10/06/2021 / ORDER THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) -48, MUMBAI [IN SHORT THE CIT(A)] DATED 27/06/2019 FOR THE ASSESSMENT YEAR 2011-12. 2. SHRI RASESH SHAH APPEARING ON BEHALF OF THE ASS ESSEE SUBMITTED THAT THE ASSESSEE IS A TRADER/EXPORTER OF DIAMONDS. THE ASS ESSMENT IN THE CASE OF ASSESSEE FOR ASSESSMENT YEAR 2011-12 WAS REOPENED ON THE GRO UND THAT THE ASSESSEE HAS 2 ITA NO.5686/MUM/2019 (A.Y 2011-12) OBTAINED ACCOMMODATION ENTRIES AMOUNTING TO RS.79,1 9,339/- FROM M/S. PRIME STAR. TO PROVE GENUINENESS OF PURCHASES, THE ASSESSEE FUR NISHED VARIOUS DOCUMENTS INCLUDING AFFIDAVIT FROM M/S. PRIME STAR CONFIRMING THE TRANSACTIONS. THE ASSESSING OFFICER AND CIT(A) DISBELIEVED THE SAME. THE ASSES SING OFFICER MADE ADDITION OF RS.6,33,547/- BY ESTIMATING G.P @ 8% ON ALLEGED BOG US PURCHASES. THE CIT(A) HAS UPHELD THE SAME. THE LD. AUTHORIZED REPRESENTATIVE OF THE ASSESSEE FURTHER CONTENDED THAT ADDITIONS OF SIMILAR REASONS WERE MA DE IN ASSESSMENT YEARS 2007-08 TO 2010-11 AND IN THE SUBSEQUENT ASSESSMENT YEARS I.E. AY 2012 -13 TO 2014-15. THE MATTER TRAVELLED TO THE TRIBUNAL. THE TRIBUNAL IN I TA NOS. 747 TO 752/MUM/2018 FOR ASSESSMENT YEARS 2007-08 TO 2010-11, 2012-13 AND 20 13-14 DECIDED ON 13/03/2019, AFTER EXAMINING THE FACTS AND PLACING RELIANCE ON T HE DECISION OF TRIBUNAL IN THE CASE OF M/S. SEJAL EXPORTS (INDIA) VS DCIT IN ITA NO.385 4/MUM/2017 DECIDED ON 04/7/2018 DELETED THE ENTIRE ADDITION MADE ON ACCOU NT OF NON-GENUINE PURCHASES. THE FACTS IN THE IMPUGNED ASSESSMENT YEAR ARE IDENT ICAL. 3. ON THE CONTRARY, SHRI SUSHIL KUMAR MISHRA REPRES ENTING THE DEPARTMENT VEHEMENTLY DEFENDED THE IMPUGNED ORDER AND PRAYED F OR DISMISSING THE APPEAL OF ASSESSEE. THE LD. DEPARTMENTAL REPRESENTATIVE SUBMI TTED THAT THE ASSESSEE HAD OBTAINED ACCOMMODATION ENTRIES FROM M/S. PRIME STAR , BELONGING TO BHANWARLAL JAIN GROUP A LEADING ENTRY PROVIDER OF MUMBAI. DURING S EARCH AND SEIZURE ACTION ON BHANWARLAL JAIN GROUP IT WAS FOUND THAT HE IS OPERA TING BENAMI FIRMS FOR THE SOLE PURPOSE OF PROVIDING ACCOMMODATION ENTRIES. THE NA ME OF ASSESSEE HAD FIGURED IN THE DATA COMPILED DURING SEARCH AND SEIZURE ACTION. THE ASSESSEE IS ONE OF THE BENEFICIARIES OF BOGUS ENTRIES. HOWEVER, THE LD. D EPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT ADDITIONS FOR SIMILAR REASONS MADE IN ASSESSEES CASE IN THE PRECEDING AND SUCCEEDING ASSESSMENT YEARS WERE DELETED BY THE TRIBUNAL. 4. BOTH SIDES HEARD, ORDERS OF AUTHORITIES BELOW EX AMINED. REASSESSMENT PROCEEDINGS WERE INITIATED IN THE CASE OF ASSESSEE ON THE GROUND THAT THE ASSESSEE 3 ITA NO.5686/MUM/2019 (A.Y 2011-12) HAS ALLEGEDLY OBTAINED ACCOMMODATION ENTRIES FROM M /S. PRIME STAR A FIRM BELONGING TO BHANWARLAL JAIN GROUP. DURING ASSESSMENT PROCEED INGS THE ASSESSEE HAD FURNISHED DOCUMENTARY EVIDENCE TO PROVE GENUINENESS OF PURCHA SES, INCLUDING CONFIRMATION FROM M/S. PRIME STAR. ON IDENTICAL SET OF FACTS ADD ITIONS WERE MADE IN THE HANDS OF ASSESSEE BEING ONE OF THE BENEFICIARY OF ACCOMMODAT ION ENTRIES PROVIDED BY BHANWARLAL JAIN GROUP OF FIRMS IN PRECEDING ASSESSM ENT YEARS STARTING FROM ASSESSMENT YEAR 2007-08 TO 2010-11 AND SUCCEEDING A SSESSMENT YEARS I.E. AY 2012- 13 TO 2014-15. THE ADDITIONS WERE CONFIRMED BY THE CIT(A). THE ASSESSEE CARRIED THE ISSUE IN APPEAL BEFORE THE TRIBUNAL. THE TRIBUNAL DELETED THE ENTIRE ADDITION VIDE ORDER DATED 13/3/2019 (SUPRA). 5. BOTH SIDES ARE UNANIMOUS IN STATING THAT THE FA CTS IN THE IMPUGNED ASSESSMENT YEAR ARE IDENTICAL TO THE FACTS IN APPEALS DECIDED BY THE TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO.747 TO 752/MUM/2018 (SUPRA). I FIND NO REASON TO TAKE A DIFFERENT VIEW. FOLLOWING THE DECISION OF CO-ORDINATE BENCH I N ASSESSEES OWN CASE, THE ADDITION ON ACCOUNT OF BOGUS PURCHASES IS DELETED A ND APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THURSDAY, TH E 10 TH DAY OF JUNE, 2021 SD/- (VIKAS AWASTHY) ! / JUDICIAL MEMBER / MUMBAI, 1!'/ DATED: 10/06/2021 VM , SR. PS (O/S) 4 ITA NO.5686/MUM/2019 (A.Y 2011-12) COPY OF THE ORDER FORWARDED TO : 1. ) / THE APPELLANT , 2. * +! / THE RESPONDENT. 3. 2+ ( )/ THE CIT(A)- 4. 2+ CIT 5. 34* + ' , . . . , / DR, ITAT, MUMBAI 6. 45678 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI