ITO 28 (1)(2), Mumbai V. SHRI. BECHAR HARJI RAVARIA, Mumbai

ITA 601/MUM/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7673 (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. 601/MUM/2019 (ASSESSMENT YEAR: 2009-10) INCOME TAX OFFICER - 28(1)(2) ROOM NO. 328, 3RD FLOOR TOWER NO. 6, VASHI RAILWAY STATION COMPLEX, VASHI NAVI MUMBAI 400703 VS. SHRI BECHAR HARJI RAVARIA 102, B-WING, SHIV SHAKTI APTS SECTOR-1, PLOT NO. 110, SANPADA NAVI MUMBAI 400705 PAN AGXPP5001B 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)- 26, MUMBAI, IN THE MATTER OF ORDER PASSED BY THE AO UNDER SECTION 143(3)/147 OF THE INCOME TAX ACT, 1961 (HEREINAFTER 'THE ACT'). 2. THE ONLY GRIEVANCE OF THE REVENUE IS AGAINST THE OR DER OF THE CIT(A) RESTRICTING THE DISALLOWANCE ON ACCOUNT OF BOGUS PU RCHASES TO THE EXTENT OF 12.5%. 3. I HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND THAT THE ASSESSEE IS SELLING COPIER MACHINE, TONER, PRINTER AND LAMINATION MATERIAL. ON GETTING INFORMATION THAT ASSESSEE IS E NGAGED IN TAKING BOGUS BILLS FOR PURCHASES, THE AO REOPENED ASSESSMENT AND THEREAFTER ADDED 100% OF ALLEGED BOGUS PURCHASES IN ASSESSEES INCOM E. BY THE IMPUGNED ORDER THE CIT(A) RESTRICTED THE ADDITION TO THE EXT ENT OF 12.5%, AFTER CONTROVERTING THE FINDINGS RECORDED BY THE AO. THE CIT(A) OBSERVED THAT THERE CANNOT BE SALES WITHOUT CORRESPONDING PURCHAS ES. THEREAFTER, CONSIDERING THE JUDICIAL PRONOUNCEMENT IN THE CASE OF CIT VS. SMIT P. ITA NO. 601/MUM/2019 SHRI BECHAR HARJI RAVARIA 2 SHETH 356 ITR 451 (GUJ) AND APPLYING THE PRINCIPLE LAID DOWN THEREIN TO THE FACTS OF THE PRESENT CASE, RESTRICTED THE ADDITION TO THE EXTENT OF 12.5%. NOTHING WAS PLACED BEFORE ME BY THE LEARNED D.R. SO AS TO PERSUADE ME TO DEVIATE FROM THE FINDINGS RECORDED BY THE CIT(A) IN PARAS 6.1 AND 6.2 OF THE APPELLATE ORDER. 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.