ITO 20 (1)(1), Mumbai V. SHRI. ABDUL HALIM KIFAITULLA KHAN, Mumbai

ITA 5726/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2978 (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: 2009-2010
• Appeal Filed On: 05-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bogus purchase

Judgement Text

, , !'# IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 5726 / / 2019 ( '. 2009-10 ) ITA NO.5726/MUM/2019 (A.Y 2009- 10) INCOME TAX OFFICER-20(1)(1) ROOM NO.124, 1ST FLOOR, PIRAMAL CHAMBERS, LAL BAUG, PAREL, MUMBAI 400 012 ...... ) / APPELLANT ' VS. SHRI ABDUL HALIM KIFAITULLA KHAN, PLOT NO.241, KOLSA BUNDER, REAY ROAD, DARUKHANA, MUMBAI 400 010. PAN: ATCPK-8331M ..... * +!/ RESPONDENT ),/ APPELLANT BY : SHRI SUSHIL KUMAR MISHRA * +!,/ RESPONDENT BY : SHRI VIMAL PUNMIYA '- + / DATE OF HEARING : 01/04/2021 ./0 - + / DATE OF PRONOUNCEMENT : 15/06/2021 !'/ ORDER THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) MUMBA-32 [IN SHORT 'THE CIT(A)] DATED 26/06/2019 FOR THE ASSESSMENT YEAR 2009-10. 2. SHRI VIMAL PUNMIYA APPEARING ON BEHALF OF THE AS SESSEE SUBMITTED THAT THE ASSESSEE IS A TRADER IN MS PIPES AND TUBES. THE ASSESSMENT IN THE CASE OF 2 ITA NO.5726/MUM/2019 (A.Y 2009-10) ASSESSEE FOR ASSESSMENT YEAR 2009-10 WAS REOPENED O N THE BASIS OF INFORMATION RECEIVED FROM THE SALES TAX DEPARTMENT, GOVERNMENT OF MAHARASHTRA. AS PER INFORMATION, THE ASSESSEE HAD A LLEGEDLY OBTAINED BOGUS PURCHASE BILLS AGGREGATING TO RS.56,36,627/- FROM F OUR DEALERS. THE ASSESSEE FURNISHED RELEVANT DOCUMENTS TO PROVE GENUINENESS O F PURCHASES, HOWEVER, THE ASSESSING OFFICER REJECTED THE SAME AND DISALLO WED 12.5% OF ALLEGED BOGUS PURCHASES AND THUS, MADE ADDITION OF RS.7,04,578/-. THE ASSESSEE FILED APPEAL AGAINST ASSESSMENT ORDER DATED 18/02/2015. THE CIT( A) RESTRICTED THE ADDITION TO 5% OF SUCH PURCHASES. THE G.P. RATIO DECLARED BY THE ASSESSEE DURING THE RELEVANT PERIOD IS 4.10%. THE ASSESSEE HAS ACCEPTED THE ADDITION MADE BY CIT(A). THE LD. AUTHORIZED REPRESENTATIVE OF ASSESS EE PRAYED FOR UPHOLDING THE IMPUGNED ORDER AND PRAYED FOR DISMISSING THE APPEAL OF REVENUE. 3. ON THE OTHER HAND, SHRI SUSHIL KUMAR MISHRA REPR ESENTING THE DEPARTMENT STRONGLY SUPPORTED THE ASSESSMENT ORDER AND PRAYED FOR REVERSING THE FINDINGS OF CIT(A) AND UPHOLDING ADDITION MADE BY THE ASSESSING OFFICER. THE LD. DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE ASSESSEE FAILED TO DISCHARGE HIS ONUS IN PROVING GENUINENESS OF PURCHA SES AND THE DEALERS. 4. BOTH SIDES HEARD, ORDERS OF AUTHORITIES BELOW EX AMINED. UNDISPUTEDLY, THE ASSESSEE FAILED TO SUBSTANTIATE GENUINENESS OF PURCHASES MADE FROM DEALERS, DECLARED AS HAWALA OPERATORS BY THE SALES TAX DEPARTMENT, GOVERNMENT OF MAHARASHTRA. THE G.P DECLARED BY ASSE SSEE ON REGULAR TRANSACTIONS IS 4.10% AND THE SAME HAS BEEN ACCEPTE D BY THE REVENUE. TAKING INTO CONSIDERATION ENTIRETY OF FACTS, ESTIMATED ADD ITION OF 12.5% BY THE ASSESSING OFFICER IS ON HIGHER SIDE. I CONCUR WITH THE FINDINGS OF CIT(A) IN 3 ITA NO.5726/MUM/2019 (A.Y 2009-10) RESTRICTING ADDITION ON BOGUS PURCHASES TO 5%. THE APPEAL OF REVENUE IS WITHOUT ANY MERIT, HENCE, DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON TUESDAY, THE 15 TH DAY OF JUNE, 2021. SD/- (VIKAS AWASTHY) ! / JUDICIAL MEMBER / MUMBAI, 2!'/ DATED: 15/06/2021 VM , SR. PS (O/S) 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