ITO 26(2)(4), Mumbai V. M/S POPULAR DRUM SUPLIEERS, Mumbai

ITA 596/MUM/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7672 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 05-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'SMC' BENCH, MUMBAI BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER ITA NO. 596/MUM/2019 (ASSESSMENT YEAR: 2011-12) INCOME TAX OFFICER - 26(2)(4) C-11, PRATYAKSHA KAR BHAVAN BANDRA KURLA COMPLEX BANDRA (E)MUMBAI 400051 VS. M/S. POPULAR DRUM SUPPLIERS SIDDHI VINAYAK STORES OPP. CAFE NAA HOTEL KHAIRANI ROAD, SAKINAKA MUMBAI 400072 PAN AAFFP2632Q APPELLANT RESPONDENT APPELLANT BY: SHRI ANOOP HIWASE RESPONDENT BY: NONE DATE OF HEARING: 29.01.2020 DATE OF PRONOUNCEMENT: 30.01.2020 O R D E R PER R.C. SHARMA, AM THIS APPEAL FILED BY REVENUE IS DIRECTED AGAINST TH E ORDER OF THE CIT(A)-38, MUMBAI DATED 30.05.2014 AND IT RELATES T O A.Y. 2006-07, IN THE MATTER OF ORDER PASSED BY THE AO UNDER SECTIONS 143 (3)/147 OF INCOME TAX ACT, 1961 (HEREINAFTER 'THE ACT'). 2. IN THIS APPEAL THE REVENUE IS AGGRIEVED BY THE ORDE R OF THE CIT(A) RESTRICTING THE ADDITION ON ACCOUNT OF BOGUS PURCHA SES TO THE EXTENT OF 12.5%. 3. I HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF RES ALE OF ALL TYPES OF DRUMS AND SCRAP. THE AO GOT INFORMATION REGARDING ASSESSE E TAKING BOGUS PURCHASE BILLS. THE AO REOPENED THE ASSESSMENT AND THEREAFTER MADE ADDITION OF 25% ON ALLEGED BOGUS PURCHASES. BY THE IMPUGNED ORDER THE CIT(A) RESTRICTED THE ADDITION TO THE EXTENT OF 12. 5% AFTER CONSIDERING THAT THE ASSESSEE HAS ALREADY DECLARED GROSS PROFIT AT 7 .98%. THEREAFTER HE APPLIED THE JUDICIAL PRONOUNCEMENT AS LAID DOWN BY THE HON'BLE GUJARAT ITA NO. 596/MUM/2019 POPULAR DRUM SUPPLIERS 2 HIGH COURT IN THE CASE OF CIT VS. SMIT P. SHETH 356 ITR 451. THE DETAILED FINDINGS RECORDED BY THE CIT(A) AT PARAS 7.4.1 TO 7 .4.7 HAS NOT BEEN CONTROVERTED BY THE LEARNED D.R. ACCORDINGLY I DO N OT FIND ANY REASON TO INTERFERE IN THE FINDINGS RECORDED BY THE CIT(A) FO R RESTRICTING THE ADDITION ON ACCOUNT OF BOGUS PURCHASES TO THE EXTENT OF `12.5%. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH JANUARY, 2020. SD/ - (R.C. SHARMA) ACCOUNTANT MEMBER MUMBAI, DATED: 30 TH JANUARY, 2020 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -38, MUMBAI 4. THE PR.CIT - 26, MUMBAI 5. THE DR, SMC BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.