INCOME TAX OFFICER -20 (1) (5), MUMBAI, MUMBAI V. SHRI IMTIYAZ A CHAUDHARY, MUMBAI

ITA 5814/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2974 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2021
• 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
• Keywords: Bogus purchase

Judgement Text

, , ! IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC , MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 5814 / / 2019 (%. 2010-11 ) ITA NO.5814/MUM/2019(A.Y 2010-11) INCOME TAX OFFICER 20(1)(5) PIRAMAL CHAMBERS, LALBAUG, PAREL, MUMBAI 400 012 ...... ' / APPELLANT % VS. SHRI IMTIYAZ A. CHAUDHARY, ROOM NO.1, GROUND FLOOR, HASHIM JETHA CHAWL,ZAKARIA BUNDER ROAD, SEWRI, MUMBAI 400 015. PAN: AFYPC-8106N ..... ()/ RESPONDENT '*/ APPELLANT BY : SHRI SUSHIL KUMAR MISHRA ()*/ RESPONDENT BY : SHRI PRAMOD KUMAR PARIDA %+) / DATE OF HEARING : 01/04/2021 ,-. +) / DATE OF PRONOUNCEMENT : 15/06/2021 / ORDER THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER O F COMMISSIONER OF INCOME TAX (APPEALS) -55, MUMBAI [IN SHORT THE CIT (A)] DATED 28/06/2019 FOR THE ASSESSMENT YEAR 2010-11. 2. SHRI SUSHIL KUMAR MISHRA REPRESENTING THE DEPART MENT SUBMITTED THAT DURING THE PERIOD RELEVANT TO ASSESSMENT YEAR UND ER APPEAL THE ASSESSEE HAS INDULGED IN OBTAINING BOGUS PURCHASE BILLS AGGREGA TING TO RS.24,87,488/- FROM 2 ITA NO.5814/MUM/2019(A.Y 2010-11) VARIOUS (5) HAWALA DEALERS. DURING THE ASSESSMENT PROCEEDINGS THE ASSESSEE COULD NEITHER PROVE BONA-FIDE OF THE DEALERS NOR PURCHASES MADE FROM THEM. NO REPLY TO THE NOTICES ISSUED UNDER SECTION 133( 6) OF THE INCOME TAX ACT,1961 ( IN SHORT 'THE ACT') TO THE SUSPICIOUS DE ALERS WERE RECEIVED. THE ASSESSING OFFICER ESTIMATED PROFIT MARGIN ON BOGU S PURCHASE TRANSACTIONS AT 12.5% AND MADE ADDITION OF RS.3,10,936/- THE CIT(A ) RESTRICTED THE ADDITION TO 8% ON BOGUS PURCHASES. THE LD.DEPARTMENTAL REPR ESENTATIVE SUBMITTED THAT ESTIMATION OF PROFIT MARGIN BY ASSESSING OFFIC ER IS REASONABLE AND FAIR, THEREFORE, THE SAME SHOULD BE SUSTAINED. THE LD.DE PARTMENTAL REPRESENTATIVE PRAYED FOR REVERSING THE FINDING OF CIT(A). 3. ON THE OTHER HAND, SHRI PRAMOD KUMAR PARIDA APP EARING ON BEHALF OF THE ASSESSEE VEHEMENTLY SUPPORTED THE IMPUGNED ORD ER. THE LD.AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT THE A SSESSEE IS TRADER IN IRON AND STEEL. THE ASSESSING OFFICER MADE 12.5% DISAL LOWANCE OF BOGUS PURCHASES, WHICH IS VERY MUCH ON THE HIGHER SIDE. T HE DISALLOWANCE MADE BY CIT(A) AT 8% IS FAIR AND REASOANBLE. THE LD.AUTHOR IZED REPRESENTATIVE OF THE ASSESSEE PRAYED FOR DISMISSING APPEAL OF THE REV ENUE AND UPHOLDING THE ORDER OF CIT(A). 4. BOTH SIDES HEARD, ORDERS OF AUTHORITIES BELOW EX AMINED. UNDISPUTEDLY, THE ASSESSEE FAILED TO DISCHARGE HIS ONUS IN PROVIN G GENUINENESS OF SUSPICIOUS DEALERS AND PURCHASES MADE FROM THEM. THE CIT(A ) HAS UPHELD THE FINDING OF ASSESSING OFFICER TO THE EXTENT THAT THE ASSESSEE H AS MADE BOGUS PURCHASES FROM HAWALA DEALERS. THE ASSESSING OFFICER ESTIM ATED GROSS PROFIT MARGIN AT 3 ITA NO.5814/MUM/2019(A.Y 2010-11) 12.5% ON BOGUS PURCHASES. GENERALLY, G.P IN TRADI NG OF IRON AND STEEL RANGES BETWEEN 5% TO 8%. IN MY CONSIDERED VIEW ESTIMATION OF PROFIT MARGIN BY THE ASSESSING OFFICER IS ON THE HIGHER SIDE. I FIND TH E ORDER OF CIT(A) FAIR AND REASONABLE, HENCE, WARRANTS NO INTERFERENCE. THE I MPUGNED ORDER IS UPHELD AND APPEAL BY THE REVENUE IS DISMISSED, BEING DEVOI D OF MERIT. ORDER PRONOUNCED IN THE OPEN COURT ON TUESDAY, T HE 15 TH DAY OF JUNE, 2021 SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, 0%/ DATED 15/06/2021 VM , SR. PS (O/S) 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