ITO-28(1)(5), Mumbai V. M/S GANESH ENGENEERING WORKSHOP , Mumbai

ITA 600/MUM/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7671 (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: 2009-2010
• 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. 600/MUM/2019 (ASSESSMENT YEAR: 2009-10) INCOME TAX OFFICER - 28(1)(5 ) ROOM NO. 325, 3RD FLOOR TOWER NO. 6, VASHI RAILWAY STATION COMPLEX, VASHI NAVI MUMBAI 400703 VS. M/S. GANESH ENGINEERING WORKSHOP PLOT NO. 77, SECTOR-23 TURBHE, NAVI MUMBAI 400703 PAN AAAFG1982H 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 IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A) FOR A.Y. 2009-10, THE MATTER OF ORDER PASSED UNDER SECTIONS 143(3)/147 OF THE INCOME TAX ACT, 1961 (HEREINAFTER 'THE ACT'). 2. IN THIS APPEAL THE REVENUE IS AGGRIEVED FOR RESTRIC TING THE DISALLOWANCE ON ACCOUNT OF BOGUS PURCHASES TO THE E XTENT OF 12.5%. 3. I HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES B ELOW AND FOUND THAT THE ASSESSEE IS A TRADER. ON GETTING INFORMATI ON REGARDING ASSESSEE TAKING BOGUS PURCHASE BILLS, THE AO REOPENED ASSESS MENT AND THEREAFTER MADE 100% ADDITION IN RESPECT OF SUCH ALLEGED BOGUS PURCHASES. BY THE IMPUGNED ORDER THE CIT(A) RESTRICTED THE ADDITION T O THE EXTENT OF 12.5% AFTER CONSIDERING THE GROSS PROFIT DECLARED BY THE ASSESSEE AND THE PROFIT ELEMENT EMBEDDED IN THE ALLEGED BOGUS PURCHASES. TH E CIT(A) ALSO APPLIED THE JUDICIAL PRONOUNCEMENT LAID DOWN BY THE HON'BLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. SMIT P. SHETH 356 ITR 451. D ETAILED FINDING RECORDED ITA NO. 600/MUM/2019 M/S. GANESH ENGINEERING WORKSHOP 2 BY THE CIT(A) AT PARA 6.1 HAS NOT BEEN CONTROVERTED . ACCORDINGLY I DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF THE CI T(A) RESTRICTING THE ADDITION TO THE EXTENT OF 12.5% OF ALLEGED BOGUS PURCHASES. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS D ISMISSED. 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) -26, MUMBAI 4. THE PR.CIT - 28, MUMBAI 5. THE DR, SMC BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.