ITO 20 (3)(5), Mumbai V. ZAKIR ALI KHAN , Mumbai

ITA 5848/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3557 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 11-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY SETHILD
• Keywords: Bogus purchase
• Section: 143(3)

Judgement Text

1 - IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI , , BEFORE HONBLE SHRI VIKAS AWASTHY, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO.5848/MUM/2019 ( / ASSESSMENT YEAR: 2010-11) I TO - 20( 3 )(5) ROOM NO.205, 2 ND FLOOR PIRAMAL CHAMBERS, LALBAUG PAREL, MUMBAI-400 012 / VS. SHRI ZAKIR ALI KHAN MCO, TUBE BPT, PLOT NO.214 KOLSA BUNDER, DARUKHANA MUMBAI-400 010. ./ ./ PAN/GIR NO. AGQPK-1081-M ( + / APPELLANT ) : ( ./+ / RESPONDENT ) + 0/ APPELLANT BY : SHRI SANJAY SETHI-LD.DR ./+ / RESPONDENT BY : NONE / DATE OF HEARING : 0 9 /06/2021 / DATE OF PRONOUNCEMENT : 09 /06/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER): - 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [AY IN SHORT] 2010- 11 CONTEST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-55, MUMBAI [IN SHORT CIT(A) ] DATED 28/06/2019 WHICH HA S PROVIDED CERTAIN RELIEF TO THE ASSESSEE ON ACCOUNT OF ALLEGED BOGUS PURCHASES. 2 2. THOUGH NONE APPEARED FOR ASSESSEE, HOWEVER, MATE RIAL ON RECORD WAS SUFFICIENT FOR DISPOSAL OF THE APPEAL. THE LD. DR PLEADED FOR RESTORATION OF ASSESSMENT FRAMED BY LD. AO. 3.1 THE MATERIAL FACTS ARE THAT THE ASSESSEE BEING RESIDENT INDIVIDUAL STATED TO BE ENGAGED IN TRADING OF STEEL ITEMS WAS ASSESSED FOR THE YEAR UNDER CONSIDERATION U/S 143(3) R.W.S. 147 ON 10/02/ 2016. THE ORIGINAL RETURN FILED BY ASSESSEE WAS PROCESSED U/S 143(1). HOWEVER , PURSUANT TO RECEIPT OF CERTAIN INFORMATION FROM DGIT (INV.) / SALES TAX DEPARTMENT, MUMBAI, IT TRANSPIRED THAT THE ASSESSEE MADE ALLEGED BOGUS PUR CHASES OF RS.14 LACS FROM AN ENTITY NAMELY M/S ASIAN STEEL. ACCORDINGLY, THE CASE WAS REOPENED AS PER DUE PROCESS OF LAW AND THE ASSESSEE WAS REQU IRED TO FILE REQUISITE DETAILS TO SUBSTANTIATE THESE PURCHASES. 3.2 IN SUPPORT OF PURCHASES, THE ASSESSEE FURNISHED CERTAIN DOCUMENTS, HOWEVER, THE ASSESSEE COULD NOT PRODUCE THE SUPPLIE R FOR CONFIRMATION OF ACCOUNT. CONSEQUENTLY, LD. AO ESTIMATED AN ADDITION OF 12.5% AGAINST THESE PURCHASES. 4. THE LD. CIT(A), CONSIDERING THE NATURE OF ASSESS EES BUSINESS AS WELL AS GROSS PROFIT RATE, RESTRICTED THE ADDITIONS TO 8 %. AGGRIEVED, THE REVENUE IS IN FURTHER APPEAL BEFORE US. 5. GOING BY THE FACTUAL MATRIX AS ENUMERATED IN THE ORDERS OF LOWER AUTHORITIES, WE FIND THAT ASSESSEES SALES TURNOVER WAS NOT IN DOUBT AND THE ASSESSEE WAS IN POSSESSION OF PRIMARY PURCHASE DOCUMENTS. THE PAYMENT TO THE SUPPLIERS WAS THROUGH BANKING CHANNE LS. THERE COULD BE NO SALE WITHOUT ACTUAL PURCHASE OF MATERIAL KEEPING IN VIEW THE ASSESSEES NATURE OF BUSINESS. THE FACTS OF THE CASE MADE IT A FIT CASE TO ESTIMATE THE 3 PROFIT ELEMENT EMBEDDED IN THESE TRANSACTIONS. THE LD. CIT(A), AFTER DUE CONSIDERATION OF ASSESSEES SUBMISSIONS AS WELL AS GROSS PROFIT RATE, ESTIMATED THE ADDITIONS @ 8% WHICH IS MORE THAN ENOUGH TO TAKE CARE OF THE LEAKAGE OF REVENUE. THEREFORE, THE ESTIMATION COULD NOT BE TERMED AS UNJUSTIFIED, IN ANY MANNER. FINDING NO REASON TO IN TERFERE IN THE IMPUGNED ORDER, WE DISMISS THE APPEAL. 6. THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED ON 09 TH JUNE, 2021. SD/- SD/- (VIKAS AWASTHY) (MANOJ KUMAR AGGARWAL) HI / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; I DATED : 09/06/2021 SR.PS, JAISY VARGHESE 01234514 / COPY OF THE ORDER FORWARDED TO : 1. + / THE APPELLANT 2. ./+ / THE RESPONDENT 3. K ( ) / THE CIT(A) 4. K / CIT CONCERNED 5. I LM .I?IIN , IN , / DR, ITAT, MUMBAI 6. MOPQ / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.