ITO 24 (2)(3), Mumbai V. SHRI. KAILASH SRICHAND MAKHIJA, Mumbai

ITA 5853/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3554 (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: 2011-2012
• Appeal Filed On: 11-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY SETHILD DR
• Assessee Lawyers: M K PATEL LD
• Keywords: Bogus purchase
• Section: 143(3); 133(6)

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.5853/MUM/2019 ( / ASSESSMENT YEAR: 2011-12) I TO - 2 4 ( 2 )( 3 ) ROOM NO.609, PIRAMAL CHAMBERS JEEJEEBHOY LANE, LALBAUG PAREL, MUMBAI -400 012 / VS. SHRI KAILASH SRICHAND MAKHIJA 405/A, BASERA, LOKHANDWALA COMPLEX ANDHERI (W), MUMBAI -400 059 ./ ./ PAN/GIR NO. AACPM-4315-L ( + / APPELLANT ) : ( ./+ / RESPONDENT ) + 0/ APPELLANT BY : SHRI SANJAY SETHI-LD.DR ./+ 0 / RESPONDENT BY : M.K.PATEL - LD. AR / DATE OF HEARING : 09 /06/2021 / DATE OF PRONOUNCEMENT : 09 /06/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER): - 1. THE REVENUE CHALLENGES THE ORDER OF LD. COMMISSI ONER OF INCOME-TAX (APPEALS)-36, MUMBAI, [CIT(A)] DATED 28/06/2019 WHI CH HAS PROVIDED CERTAIN RELIEF TO THE ASSESSEE ON ACCOUNT OF ALLEGED BOGUS PURCHASES. 2. THE LD. AR DREW ATTENTION TO THE FACT THAT LD. C IT(A) FOLLOWED ORDER FOR AY 2009-10 WHICH HAS BEEN CONFIRMED BY TRIBUNAL IN ITA 2 NO.5470/MUM/2018 ORDER DATED 15/10/2019 WHEREIN REV ENUES APPEAL HAS BEEN DISMISSED. THE COPY OF THE ORDER HAS BEEN PLAC ED ON RECORD. 3.1 THE MATERIAL FACTS ARE THAT THE ASSESSEE BEING RESIDENT INDIVIDUAL STATED TO BE ENGAGED IN TRADING OF LEATHER PRODUCTS UNDER PROPRIETORSHIP CONCERN NAMELY M/S LEATHER CRAFT WAS ASSESSED FOR T HE YEAR UNDER CONSIDERATION U/S 143(3) R.W.S. 147 OF THE ACT ON 1 8/12/2018. THE ORIGINAL RETURN FILED BY THE ASSESSEE WAS PROCESSED U/S 143( 1) OF THE ACT. HOWEVER, PURSUANT TO RECEIPT OF CERTAIN INFORMATION FROM DGI T (INV.) / SALES TAX DEPARTMENT, MUMBAI, IT TRANSPIRED THAT THE ASSESSEE PROCURED ACCOMMODATION PURCHASE BILLS OF RS.11 LACS FROM THR EE ENTITIES AS DETAILED IN THE ASSESSMENT ORDER. ACCORDINGLY, THE CASE WAS REOPENED AS PER DUE PROCESS OF LAW AND THE ASSESSEE WAS REQUIRED TO FIL E REQUISITE DETAILS TO SUBSTANTIATE THE PURCHASES. 3.2 THOUGH THE ASSESSE FILED DOCUMENTS / DETAILS IN SUPPORT OF THE PURCHASES, HOWEVER, NOTICES ISSUED U/S 133(6) TO TH E SUPPLIERS DID NOT ELICIT ANY SATISFACTORY RESPONSE. CONSEQUENTLY, LD. AO EST IMATED ADDITION OF 12.5% AGAINST THESE PURCHASES. 3.3 UPON FURTHER APPEAL, LD. CIT(A), INTER-ALIA, RE LYING UPON ESTIMATION MADE IN EARLIER APPELLATE ORDER, RESTRICTED THE ADD ITIONS TO 8%. AGGRIEVED THE REVENUE IS IN FURTHER APPEAL BEFORE US. 4. WE FIND THAT APPEAL OF REVENUE FOR AY 2009-10, F ILED ON SIMILAR FACTS, HAS BEEN DISMISSED BY THE COORDINATE BENCH OF THE T RIBUNAL IN ITA NO.5470/MUM/2018 DATED 15/10/2019 WHEREIN THE BENCH HAS CONFIRMED THE ESTIMATION OF 8%. FACTS AS WELL AS ISSUE BEING PARI -MATERIA THE SAME, 3 TAKING THE SAME VIEW, WE CONFIRM THE ESTIMATION OF 8% AND DISMISS THE APPEAL. 5. THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED ON 09 TH JUNE, 2021. SD/- SD/- (VIKAS AWASTHY) (MANOJ KUMAR AGGARWAL) KL / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; L DATED : 09/06/2021 SR.PS, JAISY VARGHESE 01234514 / COPY OF THE ORDER FORWARDED TO : 1. + / THE APPELLANT 2. ./+ / THE RESPONDENT 3. N ( ) / THE CIT(A) 4. N / CIT CONCERNED 5. L OP .LBLLQ , LQ , / DR, ITAT, MUMBAI 6. PRST / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.