ITO-20(1)(4), Mumbai V. SHRI. DENESH AJMERA, Mumbai

ITA 5719/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1770 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2021
• 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
• Section: 133(6)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI , BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 5719 //2019 (. . 2011-12 ) ITA NO.5719/MUM/2019 (A.Y.2011-12) ITO-20(1)(4), ROOM NO. 112, PIRAMAL CHAMBERS, LALBAUG, PAREL, MUMBAI-400012. ...... ) / APPELLANT VS. SHRI DINESH AJMERA 211/A, KOLSA BUNDER, DARUKHANA, REAY ROAD, MUMBAI-400010. PAN: AABPA5070F ..... *,/ RESPONDENT ) -/ APPELLANT BY : SH. SUSHIL KUMAR MISHRA *, -/ RESPONDENT BY : NONE . / DATE OF HEARING : 01/04/2021 . / DATE OF PRONOUNCEMENT : 15/06/2021 / ORDER PER VIKAS AWASTHY, J.M: THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-32, MUMBAI [HEREINAFTER REFERR ED TO AS THE CIT(A)] DATED 14.06.2019 FOR THE ASSESSMENT YEAR (AY) 2011- 12. 2 . 5719 //2019 (. .2011-12 ) ITA NO.5719/MUM/2019 (A.Y.2011-12) 2. SHRU SUSHIL KUMAR MISHRA REPRESENTING THE DEPART MENT SUBMITTED THAT THE ASSESSEE HAD OBTAINED BOGUS PURCHASE BILLS AMOU NTING TO RS. 3,42,186/- FROM M/S SHREE DURGA STEEL. DURING ASSESSMENT PROCE EDINGS, THE ASSESSEE FAILED TO DISCHARGE ITS ONUS IN PROVING AUTHENTICIT Y OF THE DEALER AND GENUINENESS OF THE PURCHASES MADE FROM SAID DEALER. NO CONFIRMATIONS FROM THE DEALER OR ANY DOCUMENTS TO PROVE TRAIL OF GOODS VIZ. DELIVERY CHALLAN, STOCK REGISTER, ETC. WERE FILED BY THE ASSESSEE. THE NOTI CE ISSUED UNDER SECTION 133(6) OF THE INCOME TAX ACT, 1961 [HEREINAFTER REFERRED T O AS THE ACT] BY THE AO TO THE DEALER WAS RECEIVED BACK UNSERVED FROM THE POST AL AUTHORITIES WITH REMARKS NOT KNOWN/LEFT. THE AO IN A VERY REASONED AND FAIR MANNER MADE DISALLOWANCE OF 12.5% OF BOGUS PURCHASES. THE CIT(A ) HAS FURTHER REDUCED THE DISALLOWANCE ON BOGUS PURCHASES TO 5%. THE LD. DR P RAYED FOR REVERSING THE FINDINGS OF CIT(A) AND UPHOLD THE ASSESSMENT ORDER. 3. SUBMISSIONS MADE BY LD. DR HEARD, ORDERS OF AUTH ORITIES BELOW EXAMINED. THE ASSESSEE IS A DEALER IN IRON & STEEL AND ALLIED PRODUCTS. THE ASSESSEE HAS ALLEGEDLY OBTAINED ACCOMMODATION ENTRI ES AMOUNTING TO RS. 3,42,186/- FROM A DEALER DECLARED AS HAWALA OPERATO R BY THE SALES TAX DEPARTMENT, GOVERNMENT OF MAHARASHTRA. UNDISPUTEDLY , THE ASSESSEE FAILED TO SUBSTANTIATE GENUINENESS OF THE DEALER AND THE PURC HASES MADE FROM THE SAID DEALER. SINCE, THE AO ACCEPTED THE SALES TURNOVER D ECLARED BY THE ASSESSEE, THE AO MADE DISALLOWANCE IN RESPECT OF BOGUS PURCHASES BY ESTIMATING GROSS PROFIT (GP) @ 12.5% ON BOGUS PURCHASES. THE CIT(A) REDUCED IT TO 5%. GENERALLY, IN TRADING OF FERROUS AND NON-FERROUS ME TALS, THE GP RANGES BETWEEN 5% TO 8%. ESTIMATION OF GP BY AO IS VERY MUCH ON HI GHER SIDE, THE CIT(A) HAS MADE ESTIMATION OF 5% TAKING INTO CONSIDERATION THE SAVINGS MADE BY ASSESSEE 3 . 5719 //2019 (. .2011-12 ) ITA NO.5719/MUM/2019 (A.Y.2011-12) ON ACCOUNT OF VAT CHARGES. I FIND NO REASON TO INTE RFERE WITH THE IMPUGNED ORDER. HENCE, THE SAME IS UPHELD AND APPEAL OF THE REVENUE IS DISMISSED, SANS MERIT. ORDER PRONOUNCED IN THE OPEN COURT ON THURSDAY , THE 15 TH DAY OF JUNE, 2021. SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, 3/ DATED: 15/06/2021 SK, PS * 4 * 4 * 4 * 4 COPY OF THE ORDER FORWARDED TO : 1. ) / THE APPELLANT , 2. *, / THE RESPONDENT. 3. 5 ( )/ THE CIT(A)- 4. 5 CIT 5. * , . . . , / DR, ITAT, MUMBAI 6. 9 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI