ITO 22 (2)(4), Mumbai V. SHRI. NIRMAL KUMAR PARASMAL JAIN, Mumbai

ITA 5710/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3077 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2021
• 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
• Keywords: Bogus purchase; Accommodation entries
• Section: 143(3); 147

Judgement Text

, , !'# IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 5710 / / 2019 ( '. 2011-12 ) ITA NO.5710/MUM/2019 (A.Y 2011-12) INCOME TAX OFFICER-22(2)(4), 310, 3 RD FLOOR, PIRAMAL CHAMBERS, LAL BAUG, PAREL, MUMBAI 400 012 ...... ) / APPELLANT ' VS. SHRI NIRMAL KUMAR PARASMAL JAIN, SHOP NO.02, DUNHIL APARTMENT, GOLIBAR ROAD, SANTACRUZ (EAST) MUMBAI 400 056 PAN: AAAJP 8506G ..... * +!/ RESPONDENT ),/ APPELLANT BY : SHRI SUSHIL KUMAR MISHRA * +!,/ RESPONDENT BY : NONE '- + / DATE OF HEARING : 31/03/2021 ./0 - + / DATE OF PRONOUNCEMENT : 10/06/2021 !'/ ORDER THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) -34, MUMBAI [IN SHORT THE CIT (A)] DATED 13/05/2019 FOR THE ASSESSMENT YEAR 2011-12. 2 ITA NO.5710/MUM/2019(A.Y 2011-12) 2. SUBMISSIONS MADE BY LD. DEPARTMENTAL REPRESENTA TIVE HEARD, ORDERS OF THE AUTHORITIES BELOW EXAMINED. THE ASSESSEE IS A R ETAIL TRADER OF ALUMINIUM AND OTHER HARDWARE GOODS. IN ASSESSMENT PROCEEDINGS UNDER SECTION 147 R.W.S. 148 OF THE INCOME TAX ACT,1961 ( IN SHORT 'THE ACT' ), THE ASSESSING OFFICER HELD THAT DURING THE PERIOD RELEVANT TO THE ASSESSMENT Y EAR UNDER APPEAL, THE ASSESSEE HAD OBTAINED ACCOMMODATION ENTRIES AMOUNTI NG TO RS.5,87,933/- FROM VASUNDHARA ENTERPRISES. THE ASSESSEE FAILED T O PROVE GENUINENESS OF THE PURCHASES AND THE SAID DEALER. THUS, THE ASSESSING OFFICER MADE ADDITION OF RS.1,46,983/- BY ESTIMATING PROFIT MARGIN ON BOGUS PURCHASES @ 25%. 3. AGAINST THE ASSESSMENT ORDER DATED 27/2/2016 PAS SED UNDER SECTION 143(3) R.W.S. 147 OF THE ACT, THE ASSESSEE FILED AP PEAL BEFORE THE CIT(A). THE CIT(A) AFTER EXAMINING THE FACTS OF CASE AND CONSID ERING VARIOUS DECISIONS RENDERED BY THE HON'BLE HIGH COURTS AND VARIOUS BEN CHES OF THE TRIBUNAL, RESTRICTED THE ADDITION TO 12.5% OF BOGUS PURCHASES . I FIND NO INFIRMITY IN THE IMPUGNED ORDER, THE SAME IS UPHELD AND THE APPEAL O F REVENUE IS DISMISSED, SANS MERIT. ORDER PRONOUNCED IN THE OPEN COURT ON THURSDAY, TH E 10 TH DAY OF JUNE, 2021 SD/- (VIKAS AWASTHY) ! / JUDICIAL MEMBER / MUMBAI, 2!'/ DATED: 10/06/2021 VM , SR. PS (O/S) 3 ITA NO.5710/MUM/2019(A.Y 2011-12) COPY OF THE ORDER FORWARDED TO : 1. ) / THE APPELLANT , 2. * +! / THE RESPONDENT. 3. 3+ ( )/ THE CIT(A)- 4. 3+ CIT 5. 45* + ' , . . . , / DR, ITAT, MUMBAI 6. 56789 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI