INCOME TAX OFFICER , MUMBAI V. SANJAY K SHAH, MUMBAI

ITA 5818/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2977 (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 . 5818 / / 2019 (%. 2010-11 ) ITA NO.5818/MUM/2019(A.Y 2010-11) INCOME TAX OFFICER 32(3)(3), ROOM NO.735, KAUTILYA BHAVAN, BKC, BANDRA (E), MUMBAI 400 051 ...... ' / APPELLANT % VS. SANJAY K. SHAH, 502, 5 TH FLOOR, SREENATHI TOWER, 56 TH TPS ROAD, BORIVALI (W) MUMBAI 400 092 PAN: AAWFS-7410-A ..... ()/ RESPONDENT '*/ APPELLANT BY : SHRI SUSHIL KUMAR MISHRA ()*/ RESPONDENT BY : SHRI TEJAS SHAH %+) / 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) -46, MUMBAI [IN SHORT THE CIT(A)] D ATED 03/05/2019 FOR THE ASSESSMENT YEAR 2010-11. 2. SHRI SUSHIL KUMAR MISHRA REPRESENTING THE DEPAR TMENT SUBMITTED THAT THE ASSESSMENT IN THE CASE OF ASSESSEE FOR ASSESSMENT Y EAR 2010-11 WAS REOPENED ON THE BASIS OF INFORMATION RECEIVED FROM THE SALES TA X DEPARTMENT, GOVERNMENT OF MAHARASHTRA AND DGIT (INVESTIGATION), MUMBAI. AS P ER INFORMATION RECEIVED, THE ASSESSEE HAD OBTAINED BOGUS PURCHASE BILLS AMOUNTIN G TO RS.32,01,509/- FROM VARIOUS (7) HAWALA DEALERS. DURING THE COURSE ASSE SSMENT PROCEEDINGS THE ASSESSEE 2 ITA NO.5818/MUM/2019(A.Y 2010-11) FAILED TO DISCHARGE HIS ONUS IN PROVING GENUINENE SS OF DEALERS AND THE PURCHASES MADE FROM THEM. THE ASSESSING OFFICER MADE ADDITIO N OF 12.5% OF BOGUS PURCHASES. THE ASSESSEE CARRIED THE ISSUE IN APPEA L BEFORE THE CIT(A). THE CIT(A) RESTRICTED THE ADDITION TO 8%. NOW, THE REVENUE IS IN APPEAL ASSAILING THE FINDINGS OF CIT(A) IN RESTRICTING THE ADDITION TO 8% OF BOGUS P URCHASES. THE LD. DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE DISALLOWANCE MAD E BY ASSESSING OFFICER IS FAIR AND REASONABLE, HENCE, THE SAME SHOULD BE UPHELD. 3. ON THE OTHER HAND, SHRI TEJAS SHAH APPEARING ON BEHALF OF THE ASSESSEE STRONGLY SUPPORTED THE ORDER OF CIT(A) AND PRAYED F OR UPHOLDING THE SAME AND DISMISSING THE APPEAL OF REVENUE. 4. BOTH SIDES HEARD, ORDERS OF AUTHORITIES BELOW EX AMINED. UNDISPUTEDLY, THE ASSESSEE FAILED TO DISCHARGE HIS ONUS IN PROVING G ENUINENESS OF THE DEALERS AND THE PURCHASES MADE FROM THEM. THE ASSESSEE HAS NEITHER FURNISHED CONFIRMATIONS FROM SUSPICIOUS DEALERS NOR THE ASSESSEE HAS FURNISHED D OCUMENTS TO PROVE TRAIL OF GOODS. AT THE SAME TIME IT IS OBSERVED THAT THE A SSESSING OFFICER HAS ACCEPTED SALES TURNOVER DECLARED BY THE ASSESSEE. IT IS ON LY THE PROFIT ELEMENT EMBEDDED IN BOGUS PURCHASES THAT HAS TO BE BROUGHT TO TAX. IN M Y CONSIDERED VIEW ESTIMATION OF PROFIT MARGIN @ 12.5% BY THE ASSESSING OFFICER IS O N HIGHER SIDE. THE CIT(A) HAS RESTRICTED THE ADDITION TO 8%. I FIND NO REASON T O INTERFERE WITH THE FINDINGS OF CIT(A), HENCE, THE SAME ARE UPHELD AND THE APPEAL B Y REVENUE IS DISMISSED BEING DEVOID OF MERIT. 5. IN THE RESULT, APPEAL BY THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON TUESDAY, TH E 15 TH DAY OF JUNE, 2021 SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, 0%/ DATED 15/06/2021 VM , SR. PS (O/S) 3 ITA NO.5818/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