ITO-22(1)(5), MUMBAI, MUMBAI V. SHRI GOKUL GOVIND SANDHA, MUMBAI

ITA 5883/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3496 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 13-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY SETHILD
• 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 H ONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO. 5883/MUM/2019 ( / ASSESSMENT YEAR: 2011 - 12 ) ITO - 2 2( 1 )( 5 ) ROOM NO. 323 , 3 RD FL OOR PIRAMAL CHAMBERS, LAL BAUG PAREL, MUMBAI - 4000 12 / V S. SHRI GOKUL GOVIND SANDHA WINTER WEAR GALA 2B & 3C FR DEMELLOW CHAWL NEAR HANUMAN TEMPLE, KHOTWADI SANTACRUZ (W) , MUMBAI - 400 054 ./ ./ PAN/GIR NO. AVKPS - 0355 - D ( / APPELLANT ) : ( / RESPONDENT ) / APPEL LANT BY : SHRI SANJAY SETHI - LD.DR / RESPONDENT BY : NONE / DATE OF HEARING : 10/06/2021 / DATE OF PRONOUNCEMENT : 10/06/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER): - 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [AY IN SHORT] 20 11 - 12 CONTEST THE ORDER OF L D. COMMISSIONER OF INCOME TAX (APPEALS) - 55 , MUMBAI [IN SHORT CIT(A) ] DATED 20/06/2019 WHICH HAS PROVIDED CERTAIN RELIEF TO THE ASSESSEE ON ACCOUNT OF ALLEGED BOGUS PURCHASES. 2 2. THO UGH NONE APPEARED FOR ASSESSEE, HOWEVER, MATERIAL 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 E NGAGED IN MANUFACTURING OF GARMENTS WAS ASSESSED FOR THE YEAR UNDER CONSIDERATION U/S 143(3) R.W.S. 147 ON 30/11/2015. THE ORIGINAL RETURN FILED BY ASSESSEE WAS PROCESSED U/S 143(1). HOWEVER, PURSUANT TO RECEIPT OF CERTAIN INFORMATION FROM DGIT (INV.) / SA LES TAX DEPARTMENT, MUMBAI, IT TRANSPIRED THAT THE ASSESSEE MADE ALLEGED BOGUS PURCHASES OF RS.25,200/ - FROM AN ENTITY NAMELY M/S SHIVRAJ TRADERS. ACCORDINGLY, THE CASE WAS REOPENED AS PER DUE PROCESS OF LAW AND THE ASSESSEE WAS REQUIRED TO FILE REQUISITE DETAILS TO SUBSTANTIATE THESE PURCHASES. 3.2 IN SUPPORT OF PURCHASES, THE ASSESSEE FURNISHED CERTAIN DOCUMENTS, HOWEVER, THE NOTICE ISSUED U/S 133(6) TO THE SUPPLIER DID NOT ELICIT ANY SATISFACTORY RESPONSE. CONSEQUENTLY, LD. AO DISALLOWED THESE PURCHASES . 4. THE LD. CIT(A), CONSIDERING ASSESSEES SUBMISSIONS AS WELL AS DOCUMENTARY EVIDENCES , RESTRICTED THE ADDITIONS TO 12.5%. AGGRIEVED, THE REVENUE IS IN FURTHER APPEAL BEFORE US. 5. GOING BY THE FACTUAL MATRIX AS ENUMERATED IN THE ORDERS OF LOWER AUTHOR ITIES, WE FIND THAT ASSESSEES SALES TURNOVER WAS NOT IN DOUBT AND THE ASSESSEE WAS IN POSSESSION OF PRIMARY PURCHASE DOCUMENTS. THE PAYMENT TO THE SUPPLIER WAS THROUGH BANKING CHANNELS. 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 PROFIT ELEMENT EMBEDDED IN THESE TRANSACTIONS. THE LD. CIT(A), AFTER DUE 3 CONSIDERATION OF ASSESSEES SUBMISSIONS, ESTIMATED THE ADDITIONS @12.5% 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 INTERFERE IN THE IMPUGNED ORDER, WE DISMISS THE APPEAL. 6. THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED ON 1 0 TH JUNE, 2021. SD/ - SD/ - (VIKAS AWASTHY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 10/06/2021 SR.PS, JAISY VARGHESE / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MU MBAI.