ITO 22 (1)(5), Mumbai V. M/S GOLD COIN FASHION, Mumbai

ITA 5706/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2100 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 05-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SMITA VERMA
• Keywords: Bogus purchase
• Section: 22

Judgement Text

, , ! IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC , MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 5706 / / 2019 (%. 2011-12 ) ITA NO.5706/MUM/2019(A.Y 2011-12 ) INCOME TAX OFFICER-22(1)(5), ROOM NO.323, 3 RD FLOOR, PIRAMAL CHAMBERS, LAL BAUG, PAREL, MUMBAI 400 012 ...... ' / APPELLANT % VS. M/S. GOLD COIN FASHION, 2, KUDKAR CHAWL, KHOTWADI, NEAR SAIBABA MANDIR, P.M ROAD, SANTACRUZ(W), MUMBAI 400 052 PAN: AAAFG-4041-R ..... ()/ RESPONDENT '*/ APPELLANT BY : MS. SMITA VERMA ()*/ RESPONDENT BY : NONE %+) / DATE OF HEARING : 05/04/2021 ,-. +) / DATE OF PRONOUNCEMENT : 22/06/2021 / ORDER THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX(APPEALS) MUMBAI-34 [IN SHORT 'THE CIT(A)] DATED 14/05/2019 FOR THE ASSESSMENT YEAR 2011-12. 2. THE ASSESSEE IS A MANUFACTURER AND TRADER OF RE ADYMADE GARMENTS. THE ASSESSMENT FOR ASSESSMENT YEAR 2011-12 IN THE CASE OF ASSESSEE WAS REOPENED ON THE GROUND THAT THE ASSESSEE HAS INDULGED IN OBT AINING BOGUS PURCHASE BILLS AMOUNTING TO RS.21,956/- FROM M/S. SOMNATH INTERNAT IONAL, A DECLARED HAWALA OPERATOR BY THE SALES TAX DEPARTMENT, GOVERNMENT O F MAHARASHTRA. THE 2 ITA NO.5706/MUM/2019(A.Y 2011-12) ASSESSING OFFICER MADE ESTIMATED DISALLOWANCE OF 25 % ON ALLEGED BOGUS PURCHASES. THE ASSESSEE CARRIED THE ISSUE IN APPEA L BEFORE CIT(A). THE CIT(A) RESTRICTED THE DISALLOWANCE ON BOGUS PURCHASES TO 1 2.5%, HENCE, THE PRESENT APPEAL BY THE REVENUE. 3. MS. SMITA VERMA REPRESENTING THE DEPARTMENT SUBM ITTED THAT THE ASSESSEE HAS FAILED TO ESTABLISH GENUINENESS OF PUR CHASES MADE FROM HAWALA DEALER. THE ASSESSING OFFICER WAS QUITE CONSIDERAT E IN DISALLOWING 25% OF THE BOGUS PURCHASES. THE CIT(A) ERRED IN REDUCING THE ADDITION TO 12.5%. THE LD.DEPARTMENTAL REPRESENTATIVE PRAYED FOR RESTORING THE FINDINGS OF ASSESSING OFFICER. 4. SUBMISSIONS MADE BY LD.DEPARTMENTAL REPRESENTATI VE HEARD, ORDERS OF AUTHORITIES BELOW EXAMINED. TAKING INTO CONSIDERAT ION ENTIRETY OF FACTS I AM OF CONSIDERED VIEW THAT ESTIMATION OF 25% PROFIT MARG IN ON BOGUS PURCHASES BY THE ASSESSING OFFICER IS ON HIGHER SIDE. I FIN D NO INFIRMITY IN THE IMPUGNED ORDER. HENCE, THE SAME IS UPHELD AND APPEAL OF T HE REVENUE IS DISMISSED, SANS MERIT. ORDER PRONOUNCED IN THE OPEN COURT ON TUESDAY, TH E 22 ND DAY OF JUNE, 2021 SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, 0%/ DATED 22/06/2021 VM , SR. PS (O/S) 3 ITA NO.5706/MUM/2019(A.Y 2011-12) COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT , 2. () / THE RESPONDENT. 3. 1) ( )/ THE CIT(A)- 4. 1) CIT 5. 23()% , . . . , / DR, ITAT, MUMBAI 6. 34567 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI