ITO 6 (1)(1), Mumbai V. M/S A J COAL PVT LTD., Mumbai

ITA 5718/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3071 (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: 2009-2010
• Appeal Filed On: 05-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bogus purchase; Peak credit; Accommodation entries
• Section: 143(3)

Judgement Text

, , !'# IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 5718 / / 2019 ( '. 2009-10 ) ITA NO.5718/MUM/2019 (A.Y 2009-10) INCOME TAX OFFICER-6(1)(1), ROOM NO.503, 5 TH FLOOR, AAYKAR BHAVAN, M.K. ROAD, MUMBAI 400 020 ...... ) / APPELLANT ' VS. M/S. A.J. COAL PVT. LTD., 24A, COAL DEPOT, SEWRI (EAST), MUMBAI 400 015. PAN: AABCA 0386M ..... * +!/ 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) -12, MUMBAI [IN SHORT THE CIT(A)] DATED 08/05/2019 FOR THE ASSESSMENT YEAR 2009-10. 2. THE ASSESSEE IS A TRADER IN COKE AND COAL. DURI NG ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAS OB TAINED ACCOMMODATION ENTRIES AGGREGATING TO RS.49,98,475/- FROM M/S. STHAPNA TRA DE IMPEX PVT. LTD. DURING THE 2 ITA NO.5718/MUM/2019 (A.Y 2009-10) PERIOD RELEVANT TO THE ASSESSMENT YEAR UNDER APPEAL . THE ASSESSING OFFICER AFTER EXAMINING THE TRANSACTION WITH ALLEGED HAWALA OPERA TOR MADE ADDITION OF RS.17,28,507/- BASED ON PEAK CREDIT. AGGRIEVED BY THE ASSESSMENT ORDER DATED 28/11/2016 PASSED UNDER SECTION 143(3) R.W.S. 147 O F THE INCOME TAX ACT, 1961 (IN SHORT THE ACT), THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) RESTRICTED THE ADDITION TO RS.6,26,809/- BY ESTIMATING PROFIT MARG IN ON BOGUS PURCHASES AT 12.5%. HENCE, THE PRESENT APPEAL BY THE REVENUE. 3. SUBMISSIONS MADE BY LD. DEPARTMENTAL REPRESENTAT IVE HEARD, ORDERS OF AUTHORITIES BELOW EXAMINED. UNDISPUTEDLY, THE ASSES SEE FAILED TO DISCHARGE ITS ONUS IN PROVING GENUINENESS OF PURCHASES AND THE DEALER. AT THE SAME TIME, THE ASSESSING OFFICER HAS NOT DISPUTED THE SALE TURNOVER DECLARED BY THE ASSESSEE. THEREFORE, IN SUCH LIKE BOGUS TRANSACTIONS IT IS ONLY THE PROFIT ELEMENT EMBEDDED IN SUCH TRANSACTIONS THAT CAN BE TAXED. THE ASSESSEE HAS FU RNISHED A CHART BEFORE THE FIRST APPELLATE AUTHORITY TABULATING G.P DECLARED DURING THE ASSESSMENT YEARS 2006-07 TO 2010-11. IN THE IMPUGNED ASSESSMENT YEAR, THE G.P DECLARED BY THE ASSESSEE IS 4.175%. TAKING INTO CONSIDERATION ENTIRE FACTS OF THE CASE, I AM OF CONSIDERED VIEW THAT THE ADDITION MADE BY ASSESSING OFFICER ON ACCO UNT OF BOGUS PURCHASES WAS VERY MUCH ON THE HIGHER SIDE. I CONCUR WITH THE FINDING S OF CIT(A), HENCE, THE IMPUGNED ORDER WARRANTS NO INTERFERENCE. THE APPEAL OF REVEN UE IS DEVOID OF ANY MERIT, HENCE, DISMISSED. 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.5718/MUM/2019 (A.Y 2009-10) 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