INCOME TAX OFFICER 32 (1) (2) , Mumbai V. SHRI ASHOK C CHOWDHARY, Mumbai

ITA 5788/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0317 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 23 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: 09-09-2019
• 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 . 5788 //20 19 (. . 2010-11 ) ITA NO.5788/MUM/2019 (A.Y.2010-11) ITO-32(1)(2), ROOM NO. 734, 7 TH FLOOR, KAUTILYA BHAVAN, BKC, BANDRA (E), MUMBAI-400051. ...... ' / APPELLANT VS. ASHOK C. CHOWDHARY, GROUND FLOOR, CHOWDHARY HOUSE, S.V. ROAD, DAULAT NAGAR, BORIVALI (E), MUMBAI-400066. PAN: AATPC8483A . .... (*/ 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 13.05.2019 FOR THE ASSESSMENT Y EAR (AY) 2010-11. 2. MS. SMITA VERMA REPRESENTING THE DEPARTMENT SUBM ITTED THAT THE ASSESSEE IS ENGAGED IN TRADING OF BUILDING MATERIAL . DURING THE PERIOD RELEVANT 2 . 5788 //20 19 (. .2010-11 ) ITA NO.5788/MUM/2019 (A.Y.2010-11) TO AY UNDER APPEAL, THE ASSESSEE HAS OBTAINED BOGUS PURCHASE BILLS AGGREGATING TO RS. 68,42,066/- FROM HAWALA OPERATOR S. THE ASSESSEE COULD NEITHER PROVE GENUINENESS OF THE PARTIES NOR THE GO ODS PURCHASED FROM THEM. THE ASSESSING OFFICER (AO) AFTER CONSIDERING THE DO CUMENTS FURNISHED BY THE ASSESSEE ESTIMATED GROSS PROFIT (GP) @ 12.5% ON BOG US PURCHASES AND THUS, MADE ADDITION OF RS. 8,55,258/-. IN FIRST APPELLATE PROCEEDINGS, THE CIT(A) RESTRICTED THE ADDITION TO 6%. THE LD. DR POINTED T HAT GP DECLARED BY THE ASSESSEE ON GENUINE PURCHASES IS 10.18%, THE ESTIMA TION MADE BY AO ON BOGUS PURCHASES AT 12.5% WAS FAIR AND REASONABLE. T HE LD. DR PRAYED FOR RESTORING THE FINDINGS OF AO. 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 ALLEGED PURCHASES MA DE FROM THEM. SINCE, THE AO ACCEPTED SALES TURNOVER DECLARED BY THE ASSESSEE , THE AO ESTIMATED GP ON BOGUS PURCHASES AT 12.5%. A PERUSAL OF THE IMPUGNED ORDER SHOWS THAT THE ASSESSEE HAS ALREADY DECLARED GP @ 8.15% ON BOGUS P URCHASE AND THE GP ON GENUINE PURCHASES AT 10.18%. THE GP ESTIMATED BY TH E CIT(A) ON BOGUS PURCHASES AT 6% IS OVER AND ABOVE THE GP DECLARED B Y THE ASSESSEE. I FIND NO INFIRMITY IN THE IMPUGNED ORDER, HENCE, 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 3 . 5788 //20 19 (. .2010-11 ) ITA NO.5788/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