INCOME TAX OFFICER 32 (2) (4) , MUMBAI V. SHRI NILESH M JAINQ, MUMBAI

ITA 5825/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2093 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2021
• 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
• Department Lawyers: SMITA VERMA
• Keywords: Bogus purchase
• Section: 133(6); 22

Judgement Text

, , ! IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC , MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 5825 / / 2019 (%. 2010-11 ) ITA NO.5825/MUM/2019(A.Y 2010-11 ) INCOME TAX OFFICER-32(2)(4) 718, 7 TH FLOOR, KAUTILYA BHAVAN, C-41 TO C-43, G-BLOCK, BKC, BANDRA (EAST), MUMBAI 400 051 ...... ' / APPELLANT % VS. SHRI NILESH M. JAIN, B-602, TULIP BUILDING, ROYAL COMPLEX, EKSAR ROAD, BORIVALI WEST, MUMBAI 400 092 PAN: AAJPJ- 7580-P ..... ()/ RESPONDENT '*/ APPELLANT BY : MS.SMITA VERMA ()*/ RESPONDENT BY : SHRI ASHOK SHARMA %+) / DATE OF HEARING : 05/04/2021 ,-. +) / DATE OF PRONOUNCEMENT : 22/06/2021 / ORDER THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST T HE ORDER OF COMMISSIONER OF INCOME TAX(APPEALS) MUMBAI-46 [IN SHORT 'THE CIT(A )] DATED 10/06/2019 FOR THE ASSESSMENT YEAR 2010-11. 2. SHRI ASHOK SHARMA APPEARING ON BEHALF OF THE A SSESSEE SUBMITTED THAT THE ASSESSEE IS A BUILDING MATERIAL SUPPLIER. THE ASS ESSMENT IN THE CASE OF ASSESSEE FOR ASSESSMENT YEAR 2010-11 WAS REOPENED ON THE GROUND THAT THE ASSESSEE HAS OBTAINED BOGUS PURCHASE BILLS AMOUNTING TO RS.49,11,365/- FR OM VARIOUS (13) HAWALA DEALERS. THE ASSESSEE FURNISHED RELEVANT DOCUMENTS INCLUDING P URCHASE BILLS, AND DETAILS OF 2 ITA NO.5825/MUM/2019(A.Y 2010-11) PAYMENTS MADE THROUGH CHEQUE TO SUBSTANTIATE GENU INENESS OF PURCHASES. AFTER CONSIDERING THE DETAILS FURNISHED BY THE ASSESSEE, THE ASSESSING OFFICER MADE ADDITION OF RS.6,13,924/- BY ESTIMATING G.P @ 12.5% ON ALLEGED BOGUS PURCHASES. IN FIRST APPEAL, THE CIT(A) TOOK COGNISANCE OF G.P DECLARED BY TH E ASSESSEE AND RESTRICTED THE ADDITION TO 9% OF BOGUS PURCHASES. THE SAME HAS BEEN ACCEP TED BY THE ASSESSEE. THE LD.AUTHORIZED REPRESENTATIVE OF THE ASSESSEE DEFE NDED THE ORDER OF CIT(A) AND PRAYED FOR DISMISSING APPEAL OF THE REVENUE. 3. PER CONTRA, MS. SMITA VERMA REPRESENTING THE DEP ARTMENT VEHEMENTLY DEFENDED THE ASSESSMENT ORDER. THE LD.DEPARTMENTAL REPRESEN TATIVE SUBMITTED THAT THE ASSESSEE HAS FAILED TO PROVE GENUINENESS OF PURCHASES AND THE DEALERS. THE NOTICES ISSUED UNDER SECTION 133(6) OF THE INCOME TAX ACT,1961 ( IN SHOR T 'THE ACT') BY THE ASSESSING OFFICER WERE RETURNED BACK BY THE POSTAL AUTHORITIES WITH T HE REMARKS LEFT. NEITHER ANY CONFIRMATION FROM THE DEALERS WERE FILED BY THE ASS ESSEE NOR ANY DOCUMENTARY EVIDENCE TO SUBSTANTIATE TRAIL OF GOODS WAS PRODUCED BY TH E ASSESSEE. THE LD. DEPARTMENTAL REPRESENTATIVE PRAYED FOR REVERSING THE FINDINGS OF CIT(A) AND UPHOLDING THE ADDITION ON ACCOUNT OF BOGUS PURCHASES MADE BY ASSESSING OFF ICER. 4. BOTH SIDES HEARD, ORDERS OF AUTHORITIES BELOW EX AMINED. UNDISPUTEDLY, THE ASSESSEE FAILED TO PROVE GENUINENESS OF THE DEALE RS AND THE PURCHASE MADE FROM THEM. THE ASSESSING OFFICER MADE ESTIMATED ADDITION OF 1 2.5% ON ALLEGED BOGUS PURCHASES. THE CIT(A) HAS RESTRICTED THE ADDITION TO 9%. THE ASSESSEE HAS DECLARED OVER ALL G.P OF 8.11%. I FIND NO INFIRMITY IN THE IMPUGNED ORDER, THE SAME IS UPHELD AND APPEAL OF THE REVENUE IS DISMISSED, BEING DEVOID OF ANY MERIT. ORDER PRONOUNCED IN THE OPEN COURT ON TUESDAY, TH E 22 ND DAY OF JUNE, 2021 SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, 0%/ DATED /06/2021 VM , SR. PS (O/S) 3 ITA NO.5825/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