ACIT - 19 (3), MUMBAI V. RISHABH STEEL HOUSE, MUMBAI

ITA 5700/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6975 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 05-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RUTUJA PAWAR LD
• Keywords: Bogus purchase; Reassessment proceedings
• Section: 143(3)

Judgement Text

ITA NO.5700/MUM/2018 RISHABH STEEL HOUSE ASSESSMENT YEAR :2011-12 1 IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, VP AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO 5700/MUM/2018 ( / ASSESSMENT YEAR : 2011-12 ) AC I T 19(3) MATRU MANDIR TARDEO ROAD MUMBAI / VS. M/S RISHAB STEEL HOUSE 101-102, RISHABH HOUSE 301, DUNCAN ROAD M.A.ROAD, MUMBAI 400 004 %& ./ ./PAN/GIR NO. AACFR-2807-C ( &( /APPELLANT ) : ( )*&( / RESPONDENT ) ASSESSEE BY : MS. RUTUJA PAWAR-LD. AR REVENUE BY : MS. JOTHILAKSHMI NAYAK-LD. DR / DATE OF HEARING : 04/02/2020 / DATE OF PRONOUNCEMENT : 05/02/2020 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2011-12 CONTEST THE ORDER OF LD. COMMIS SIONER OF INCOME- TAX (APPEALS)-30, MUMBAI, [IN SHORT REFERRED TO AS CIT(A)] DATED 16/07/2018 WHICH IS COMMON ORDER FOR AY 2007-08 & 2 011-12. THE GROUNDS RAISED BY REVENUE READ AS UNDER: - ITA NO.5700/MUM/2018 RISHABH STEEL HOUSE ASSESSMENT YEAR :2011-12 2 WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN RESTRICTING THE ADDITION MADE BY THE AO ON THE B ASIS OF INFORMATION RECEIVED FROM EXTERNAL SOURCES IN THE NATURE OF LAW ENFORCEMENT A GENCIES? AS EVIDENT, THE SOLE SUBJECT MATTER OF DISPUTE THAT ARISES FOR OUR CONSIDERATION IS ESTIMATED ADDITIONS ON ACCOUNT OF ALLEGED BOGUS PURCHASES. 2. IT HAS BEEN BROUGHT TO OUR NOTICE THAT THE REVEN UE ASSAILED THE SAME ORDER FOR AY 2007-08, IN SIMILAR MANNER, BEFOR E THIS TRIBUNAL VIDE ITA NO.5699/MUM/2018 ORDER DATED 25/10/2019 WHEREIN THE APPEAL WAS DISMISSED, CONFIRMING THE ADDITION OF 5% AS ESTIMAT ED BY LD. CIT(A). FACTS ARE STATED TO BE PARI-MATERIA THE SAME IN THI S YEAR. 3. FACTS ON RECORD WOULD REVEAL THAT THE ASSESSEE B EING RESIDENT FIRM WAS SUBJECT TO REASSESSMENT PROCEEDINGS FOR THE SEC OND TIME VIDE ORDER U/S 143(3) R.W.S. 147 ON 03/03/2016. THE EARLIER RE ASSESSMENT PROCEEDINGS WERE ALREADY COMPLETED VIDE ORDER DATED 04/03/2014. THE SECOND REASSESSMENT PROCEEDINGS WERE INITIATED SINC E IT TRANSPIRED THAT THE ASSESSEE HAD MADE BOGUS PURCHASES FROM 10 ENTIT IES. HOWEVER, IN THE ORIGINAL REASSESSMENT PROCEEDINGS, THE PURCHASE S MADE FROM 3 ENTITIES AGGREGATING TO RS.190.83 LACS WERE NOT DIS ALLOWED AND HENCE, THE SECOND REASSESSMENT PROCEEDINGS. THE DETAILS OF THESE 3 ENTITIES HAVE ALREADY BEEN EXTRACTED AT PARA 6.4 OF THE QUAN TUM ASSESSMENT ORDER. THE LD. AO ESTIMATED AN ADDITION OF 12.5% AG AINST THESE PURCHASES AND MADE FURTHER ADDITION OF RS.23.85 LAC S. 4. UPON FURTHER APPEAL, LD. CIT(A), FOLLOWING THE D ECISION OF THIS TRIBUNAL IN ASSESSEES OWN CASE FOR AYS 2006-07, 20 09-10, 2010-11 & ITA NO.5700/MUM/2018 RISHABH STEEL HOUSE ASSESSMENT YEAR :2011-12 3 2011-12 ORDER DATED 29/12/2017 REDUCED THE ESTIMATI ON TO 5%. AGGRIEVED, THE REVENUE IS UNDER FURTHER APPEAL BEFO RE US. 5. UPON DUE CONSIDERATION, WE FIND THAT LD. CIT(A) HAS MERELY FOLLOWED THE DECISION OF THIS TRIBUNAL IN ASSESSEE S OWN CASE FOR VARIOUS YEARS AS STATED IN PARA 4. FURTHER, THE IMPUGNED OR DER IS COMMON ORDER FOR AYS 2007-08 & 2011-12. THE REVENUE ASSAILED THE ESTIMATION OF 5% FOR AY 2007-08 BEFORE THIS TRIBUNAL VIDE ITA NO.569 9/MUM/2018 BUT THE SAME WAS DISMISSED BY SMC BENCH OF THE TRIBUNAL VID E ORDER DATED 25/10/2019. FACTS BEING PARI-MATERIA THE SAME, RESP ECTFULLY FOLLOWING THE CONSISTENT STAND OF TRIBUNAL, WE DISMISS THE APPEAL , CONFIRMING THE ESTIMATION OF 5% AS MADE BY LD. CIT(A). 6. THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 05 TH FEBRUARY, 2020. SD/- SD/- (MAHAVIR SINGH) (MA NOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI; DATED : 05/02/2020 SR.PS. JAISY VARGHESE !'#' / COPY OF THE ORDER FORWARDED TO : 1. &( / THE APPELLANT 2. )*&( / THE RESPONDENT 3. 1 ( ) / THE CIT(A) 4. 1 / CIT CONCERNED 5. 23),4 , 4 , / DR, ITAT, MUMBAI 6. 356 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.