ITO-20(2)(1), MUMBAI, MUMBAI V. MUKESH KUMAR KISHOREMAL DOSHI, MUMBAI

ITA 5743/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0781 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 06-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SMITA VERMA
• Keywords: Bogus purchase

Judgement Text

, , ! IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC , MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 5743 / / 2019 (%. 2009-10 ) ITA NO.5743/MUM/2019(A.Y 2009-10 ) ITO-20(2)(1), ROOM NO.216, 2 ND FLOOR, PIRAMAL CHAMBER, LALBAUG, MUMBAI 400 012 ...... ' / APPELLANT % VS. MUKESHKUMAR KISHOREMAL DOSHI, 212, SHAYMSUNDER CO-OP HS. SOCIETY NO.3, 2 ND FLOOR, K.K.MARG MUMBAI 400 018. PAN: AACPD-1669-C ..... ()/ RESPONDENT '*/ APPELLANT BY : MS.SMITA VERMA ()*/ RESPONDENT BY : NONE %+) / DATE OF HEARING : 06/04/2021 ,-. +) / DATE OF PRONOUNCEMENT : 01/07/2021 / ORDER THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER COMMISSIONER OF INCOME TAX(APPEALS)-32, MUMBAI [IN SHORT 'THE CIT(A)] DATED 12/06/2019 FOR THE ASSESSMENT YEAR 2009-10. 2. MS. SMITA VERMA REPRESENTING THE DEPARTMENT SUB MITTED THAT THE ASSESSEE IS A DEALER IN ALUMINIUM EXTRUSIONS AND G LASS. THE ASSESSMENT IN THE CASE OF THE ASSESSEE FOR ASSESSMENT YEAR 2009-10 WA S REOPENED ON THE GROUND THAT THE ASSESSEE HAS OBTAINED BOGUS PURCHASE BILLS AMOUNTING TO RS.1,02,19,926/- FROM SIX HAWALA DEALERS DURING THE PERIOD RELEVANT TO THE ASSESSMENT YEAR UNDER APPEAL. DURING ASSESSMENT PR OCEEDINGS THE ASSESSEE 2 ITA NO.5743/MUM/2019(A.Y 2009-10) COULD NEITHER PROVE GENUINENESS OF THE DEALERS NO R PURCHASES MADE FROM THEM. THUS, THE ASSESSING OFFICER MADE ADDITION OF RS.12,77,491/- BY ESTIMATING PROFIT MARGIN OF 12.5% ON BOGUS PURCHAS ES. IN FIRST APPELLATE PROCEEDINGS THE CIT(A) RESTRICTED THE ADDITION TO R S.5,10,996/- BY ESTIMATING PROFIT AT 5% OF THE BOGUS PURCHASES. THE LD.DEPART MENTAL REPRESENTATIVE PRAYED FOR RESTORING DISALLOWANCE ON BOGUS PURCHAS ES MADE BY THE ASSESSING OFFICER . 3. SUBMISSIONS MADE BY LD.DEPARTMENTAL REPRESENTATI VE HEARD, ORDERS OF AUTHORITIES BELOW EXAMINED. UNDISPUTEDLY, THE ASSE SSEE FAILED TO DISCHARGE HIS ONUS IN PROVING GENUINENESS OF THE DEALERS AND THE PURCHASES MADE FROM THEM. AT THE SAME TIME IT IS OBSERVED THAT THE ASS ESSING OFFICER HAS NOT DISPUTED THE SALES TURNOVER DECLARED BY THE ASSESSE E. THE ASSESSEE HAS DECLARED G.P RATE OF 3.67%. THE SAME HAS BEEN ACCE PTED BY THE ASSESSING OFFICER. ESTIMATION OF G.P @ 12.5% ON ALLEGED BOGU S PURCHASES BY THE ASSESSING OFFICER IS ON HIGHER SIDE. THE CIT(A) HA S ESTIMATED THE PROFIT MARGIN OF 5%. I CONCUR WITH THE FINDINGS OF CIT(A). HENCE , THE IMPUGNED ORDER WARRANTS NO INTERFERENCE, THE SAME IS UPHELD AND TH E APPEAL OF REVENUE IS DISMISSED BEING DEVOID OF ANY MERIT. 4. IN THE RESULT, APPEAL BY THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON THURSDAY, T HE 1 ST DAY OF JULY, 2021 SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, 0%/ DATED 01/07/2021 VM , SR. PS (O/S) 3 ITA NO.5743/MUM/2019(A.Y 2009-10) 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