ITO-32(3)(2), MUMBAI, MUMBAI V. SMT. RUPA J. SHAH, MUMBAI, MUMBAI

ITA 5770/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0320 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-07-2021
• 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 . 5770 //20 19 (. . 2010-11 ) ITA NO.5770/MUM/2019 (A.Y.2010-11) ITO-32(3)(2), ROOM NO. 734, 7 TH FLOOR, KAUTILYA BHAVAN, BKC, BANDRA (E), MUMBAI-400051. ...... ' / APPELLANT VS. SMT. RUPA J. SHAH, BLOCK NO.4, SHYAMKUNJ, 2 ND FLOOR, S.V.P. ROAD, BORIVALI (W), MUMBAI-400092. PAN: ARZPS3269F . .... (*/ RESPONDENT ' +/ APPELLANT BY : MS. SMITA VERMA (* +/ RESPONDENT BY : NONE , / DATE OF HEARING : 06/04/2021 , / DATE OF PRONOUNCEMENT : 02/07/2021 / ORDER PER VIKAS AWASTHY, J.M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-46, MUMBAI [HE REINAFTER REFERRED TO AS THE CIT(A)] DATED 11.06.2019 FOR THE ASSESSMENT Y EAR (AY) 2010-11. 2. MS. SMITA VERMA REPRESENTING THE DEPARTMENT SUBM ITTED THAT THE ASSESSEE HAS OBTAINED BOGUS PURCHASE BILLS AGGREGAT ING TO RS. 12,37,393/- FROM 2 . 5770 //20 19 (. .2010-11 ) ITA NO.5770/MUM/2019 (A.Y.2010-11) VARIOUS (NINE) DEALERS, DECLARED AS HAWALA OPERATOR S BY THE SALES TAX DEPARTMENT, GOVERNMENT OF MAHARASHTRA. THE ASSESSEE HAS FAILED TO PROVE GENUINENESS OF DEALERS AND THE PURCHASES MADE FROM THEM. NO CONFIRMATIONS WERE FILED BY THE ASSESSEE FROM THE DEALERS NOR ANY DOCUMENTARY EVIDENCE WAS FURNISHED BY THE ASSESSEE TO PROVE TRAIL OF GOO DS. THE ASSESSING OFFICER (AO) MADE DISALLOWANCE OF RS. 3,09,348/- BY ESTIMAT ING MARGIN @ 25% ON BOGUS PURCHASES. IN FIRST APPELLATE PROCEEDINGS, TH E CIT(A) HAS RESTRICTED THE DISALLOWANCE TO 12.5%. THE LD. DEPARTMENTAL REPRESE NTATIVE (DR) POINTED THAT ESTIMATION MADE BY AO IS REASONABLE AND FAIR, THERE FORE, THE SAME SHOULD BE UPHELD. 3. SUBMISSIONS MADE BY LD. DR HEARD, ORDERS OF THE AUTHORITIES BELOW EXAMINED. UNDISPUTEDLY, THE ASSESSEE FAILED TO DISC HARGE HIS ONUS IN PROVING GENUINENESS OF THE DEALERS AND THE ALLEGED PURCHASE S MADE FROM THEM. IT IS ONLY THE PROFIT ELEMENT EMBEDDED IN SUCH UNPROVED P URCHASES THAT CAN BE BROUGHT TO TAX. THE AO MADE ESTIMATED DISALLOWANCE OF 25% ON BOGUS PURCHASES. THE CIT(A) AFTER EXAMINING THE FACTS AND AFTER PLACING RELIANCE ON THE ORDER OF CIT(A) IN AY 2011-12 IN ASSESSEES OWN CASE ON IDENTICAL FACTS RESTRICTED THE ADDITION TO 12.5% OF BOGUS PURCHASES . I AM OF CONSIDERED VIEW THAT DISALLOWANCE OF 25% BY THE AO IS ON HIGHER SID E. I SEE NO REASON TO INTERFERE WITH THE ESTIMATION MADE BY CIT(A). THE A PPEAL OF REVENUE IS DISMISSED, SANS MERIT. ORDER PRONOUNCED IN THE OPEN COURT ON FRIDAY , THE 02 ND DAY OF JULY, 2021. SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, 1/ DATED: 02/07/2021 3 . 5770 //20 19 (. .2010-11 ) ITA NO.5770/MUM/2019 (A.Y.2010-11) SK, PS ( 2 ( 2 ( 2 ( 2 COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT , 2. (* / THE RESPONDENT. 3. 3 ( )/ THE CIT(A)- 4. 3 CIT 5. ( , . . . , / DR, ITAT, MUMBAI 6. 7 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI