ITO,W-27(2)(1), MUMBAI, MUMBAI V. SHRI KRISHNAKANT TULSIDAS MEHTA (HUF), MUMBAI

ITA 5746/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0779 (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: 2010-2011
• 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 . 5746 / / 2019 (%. 2010-11 ) ITA NO.5746/MUM/2019(A.Y 2010-11 ) ITO,WARD-27(2)(1), ROOM NO.413, 4 TH FLOOR, TOWER NO.6, VASHI RLY. STATION COMPLEX, VASHI, NAVI MUMBAI 400 703 ...... ' / APPELLANT % VS. SHRI KRISHNAKANT TULSIDAS MEHTA(HUF), 6, KANJI MISTRY RAMBHUVAN, TILAK ROAD, GHATKOPAR (EAST) MUMBAI 400 077 PAN: AAAHK-4555Q ..... ()/ 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)-25, MUMBAI [IN SHORT 'THE CIT(A )] DATED 06/06/2019 FOR THE ASSESSMENT YEAR 2010-11. 2. MS. SMITA VERMA REPRESENTING THE DEPARTMENT SUB MITTED THAT THE ASSESSEE IS ENGAGED IN TRADING OF RUBBER AND CHEMICALS. THE A SSESSMENT IN THE CASE OF ASSESSEE FOR ASSESSMENT YEAR 2010-11 WAS REOPENED O N THE GROUND THAT THE ASSESSEE HAS OBTAINED BOGUS PURCHASE BILLS AMOUNTING TO RS. 4,57,100/- FROM M/S. GIRIRAJ ENTERPRISES DURING THE PERIOD RELEVANT TO THE ASSES SMENT YEAR UNDER APPEAL. DURING ASSESSMENT PROCEEDINGS THE ASSESSEE COULD NEITHER P ROVE GENUINENESS OF THE 2 ITA NO.5746/MUM/2019(A.Y 2010-11) DEALERS NOR PURCHASES MADE FROM THE SAID DEALER. T HUS, THE ASSESSING OFFICER MADE ADDITION OF ENTIRE BOGUS PURCHASES. IN FIRST APPEL LATE PROCEEDINGS THE CIT(A) RESTRICTED THE ADDITION TO RS.57,137/- BY ESTIMATIN G PROFIT AT 12.5% ON BOGUS PURCHASES. THE LD.DEPARTMENTAL REPRESENTATIVE PLAC ING RELIANCE ON THE DECISION RENDERED BY HONBLE SUPREME COURT IN THE CASE OF N.K. PROTEINS VS. DCIT IN SLP NO.(C) 769 OF 2017 DECIDED ON 16/01/2017 PRAYED FOR DISALLOWING ENTIRE BOGUS PURCHASES. 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 DEALER AND THE PURCH ASES MADE FROM HIM. AT THE SAME TIME IT IS OBSERVED THAT THE ASSESSING OFFICER HAS NOT DISPUTED THE SALES TURNOVER DECLARED BY THE ASSESSEE. WITHOUT PURCHAS ES THERE CANNOT BE SALES, HENCE, THE ENTIRE ALLEGED BOGUS PURCHASES CANNOT BE DISALL OWED. IT IS ONLY THE PROFIT ELEMENT EMBEDDED IN SUCH TRANSACTIONS THAT CAN BE B ROUGHT TO TAX. THE CIT(A) HAS ESTIMATED PROFIT MARGIN OF 12.5% ON UNPROVED PURC HASES. I CONCUR WITH THE FINDINGS OF CIT(A). HENCE, THE IMPUGNED ORDER WARRANTS NO IN TERFERENCE, THE SAME IS UPHELD AND THE 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.5746/MUM/2019(A.Y 2010-11) 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