INCOME TAX OFFICER -28 (1) (2), , MUMBAI V. SHRI BALCHANDRA GOPAL SHIROLKAR , MUMBAI

ITA 5772/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0319 (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
• Section: 143(3); 133(6); 147

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI , BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 5772 //20 19 (. . 2010-11 ) ITA NO.5772/MUM/2019 (A.Y.2010-11) ITO-28(1)(2), ROOM NO. 328, 3 RD FLOOR, TOWER NO.6, VASHI RAILWAY STATION COMPLEX, VASHI, NAVI MUMBAI-400703. ...... ' / APPELLANT VS. SHRI BALCHANDRA GOPAL SHIROLKAR FLAT NO.103, SUDAMA CHS LTD. PLOT NO. 49, SECTOR-29, VASHI, NAVI MUMBAI-400703. PAN: AACPS5913C . .... (*/ 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)-26, MUMBAI [HE REINAFTER REFERRED TO AS THE CIT(A)] DATED 17.06.2019 FOR THE ASSESSMENT Y EAR (AY) 2011-12. THE SOLITARY ISSUE RAISED BY THE REVENUE IN APPEAL IS A GAINST RESTRICTING ADDITION ON ACCOUNT OF BOGUS PURCHASES TO 12.5% BY THE CIT(A). 2 . 5772 //20 19 (. .2010-11 ) ITA NO.5772/MUM/2019 (A.Y.2010-11) 2. THE ASSESSEE IS ENGAGED IN MANUFACTURING OF FIRE TEMPLE STRUCTURE. THE ASSESSMENT FOR AY 2010-11 IN THE CASE OF ASSESSEE W AS RE-OPENED ON THE GROUND THAT THE ASSESSEE HAS OBTAINED ACCOMMODATION BILLS AMOUNTING TO RS. 5,19,478/- FROM SUSPICIOUS DEALERS. THE ASSESSING O FFICER (AO) MADE ADDITION OF THE ENTIRE ALLEGED BOGUS PURCHASES. AGGRIEVED BY THE ASSESSMENT ORDER DATED 25.01.2016 PASSED UNDER SECTION 143(3) READ W ITH SECTION 147 OF THE INCOME TAX ACT, 1961 [HEREINAFTER REFERRED TO AS T HE ACT ], THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) UPHELD THE FIN DINGS OF AO TO THE EXTENT THAT THE ASSESSEE HAS FAILED TO DISCHARGE HIS ONUS IN PROVING GENUINENESS OF THE DEALERS AND PURCHASES MADE FROM THEM. HOWEVER, THE CIT(A) RESTRICTED THE DISALLOWANCE ON BOGUS PURCHASES TO 12.5%. 3. MS. SMITA VERMA REPRESENTING THE DEPARTMENT VEHE MENTLY DEFENDED THE ASSESSMENT ORDER. THE DEPARTMENTAL REPRESENTATI VE (DR) SUBMITTED THAT THE ASSESSEE HAS FAILED TO PRODUCE DEALERS OR CONFI RMATIONS FROM THEM. THE NOTICES ISSUED UNDER SECTION 133(6) OF THE ACT TO T HE SUSPICIOUS DEALERS WERE RECEIVED BACK UNSERVED FROM THE POSTAL AUTHORITIES WITH REMARKS LEFT/NOT KNOWN/ADDRESS INCOMPLETE. THE ASSESSEE HAS NOT FUR NISHED ANY DOCUMENT SUCH AS DELIVERY CHALLANS, LORRY RECEIPTS, STOCK RE GISTER, ETC. TO PROVE TRAIL OF GOODS. THE LD. DR PRAYED FOR RESTORING THE ADDITION AS PER THE ASSESSMENT ORDER. 4. SUBMISSIONS MADE BY LD. DR HEARD, ORDERS OF THE AUTHORITIES BELOW EXAMINED. UNDISPUTEDLY, THE ASSESSEE FAILED TO DISC HARGE HIS ONUS IN PROVING AUTHENTICITY OF THE DEALERS AND THE PURCHASE MADE F ROM THEM. AT THE SAME TIME, IT IS OBSERVED THAT THE AO HAS NOT DISPUTED T HE SALES TURNOVER DECLARED 3 . 5772 //20 19 (. .2010-11 ) ITA NO.5772/MUM/2019 (A.Y.2010-11) BY THE ASSESSEE. WITHOUT PURCHASES, THERE CANNOT BE SALES, THEREFORE, IT IS ONLY THE PROFIT ELEMENT EMBEDDED IN SUCH LIKE TRANSACTIO NS THAT CAN BE BROUGHT TO TAX. (RE: PCIT VS. PARAMSHAKTI DISTRIBUTORS PVT. LT D. IN INCOME TAX APPEAL NO. 413 OF 2017 DECIDED ON 15.07.2019). THE CIT(A) AFTE R TAKING INTO CONSIDERATION ENTIRE FACTS RESTRICTED THE ADDITION ON ACCOUNT OF BOGUS PURCHASES TO 12.5%. I SEE NO INFIRMITY IN THE IMPUGNED ORDER, THEREFORE, THE SAME IS UPHELD AND APPEAL OF THE 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 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