PRATIK ENTERPRISES, MUMBAI V. ITO 25(3)(2), MUMBAI

ITA 6045/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8104 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 27-09-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAM TIWARI
• Assessee Lawyers: KALPESH TURALKAR
• Keywords: Bogus purchase
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH SMC , MUMBAI BEFORE SHRI R.C. SHARMA , ACCOUNTANT MEMBER ITA NO. 60 4 5 / M/2017 ASSESSMENT YEAR: 20 1 0 - 11 M/S. PRATIK ENTERPRISES, 201, SHATRUNJAY, MAHANT ROAD, VILE PARLE (EAST), MUMBAI 400 0 57 PAN: AA JFP0010C VS. INCOME TAX OFFICER 25(3)(2), C - 10, BKC, BANDRA (E), MUMBAI - 400 051 (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI KALPESH TURALKAR, A.R. REVENUE BY : SHRI RAM TIWARI, D.R. DATE OF HE ARING : 2 3 .11 .201 7 DATE OF PRONOUNCEMENT : 18 .12 .201 7 O R D E R PER R.C. SHARMA , ACCOUNTANT MEMBER: TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) FOR THE ASSESSMENT YEAR 20 1 0 - 11, IN THE MATTER OF ORDER PASSED UNDER SECTION 14 3 (3) READ WITH SECTION 147 OF THE ACT. 2. IN THIS APPEAL ASSESSEE IS AGGRIEVED FOR UPHOLDING THE ADDITION OF 12.5% ON THE BOGUS PURCHASES. 3. AT THE OUTSET, LD. A.R. PLACED ON RECORD THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT Y EAR 2009 - 10 DATED 09.11.2017, WHEREIN ADDITION OF 6.5% BOGUS PURCHASE IS UPHELD AFTER HAVING THE FOLLOWING OBSERVATION. 6. I HAVE HEARD RIVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. FROM THE RECORD, I FOUND THAT LOWER AUTHORITIES HAVE NOT DISPUTED THE CORRESPONDING SALES MADE BY THE ASSESSEE; HOWEVER, THEY HAVE RESTRICTED THE ADDITION TO THE EXTENT OF CERTAIN PROFIT ELEMENT HAVING BEEN EMBEDDED IN SUCH PURCHASES. THE CIT(A) HAS RESTRICTED THE ADDITION TO THE EXTENT OF ITA NO.6045/M/2017 M/S. PRATIK ENTERPRISES 2 12.5% BY RELYING ON THE DECISION OF THE GUJARAT HIGH COURT IN THE CASE OF SIMIT P SETH 356 ITR 451. IT WAS CONTENDED BY LEARNED AR THAT THE DECISION RELIED ON BY CIT(A) WAS PERTAINING TO THE GUJARAT JURISDICTION WHEREIN THE RATE OF VAT IS 10%, HOWEVER WHIC H IS 4% IN MAHARASHTRA, THEREFORE, IT WAS REQUESTED THAT THE ESTIMATION OF PROFIT SHOULD BE REDUCED. 7. FROM THE RECORD, I FOUND THAT DURING THE YEAR ASSESSEE HAD SHOWN PROFIT AT 6.64%. KEEPING IN VIEW THE NATURE OF ASSESSEE'S BUSINESS WHICH IS TRADING IN IRON AND STEEL VIS - - VIS TOTALITY OF FACTS AND CIRCUMSTANCES OF THE CASE, I DIRECT AO TO RESTRICT THE ADDITION TO THE EXTENT OF 6.5% OF SUCH BOGUS PURCHASES. I DIRECT ACCORDINGLY. 4. AS THE FACTS AND CIRCUMSTANCES DURING THE YEAR UNDER CONSIDERATION ARE SAME, RESPECTFULLY FOLLOWING THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE, WE RESTRICT THE ADDITION TO THE EXTENT OF 6.5% OF BOGUS PURCHASES. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART. ORDER PRONOUNCED IN THE OPEN COURT ON 18 .1 2. 201 7 . SD/ - (R.C. SHARMA) ACCOUNTANT MEMBER MUMBAI, DATED : 18 . 12 . 201 7 . * KISHORE C OPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONC ERNED, MUMBAI THE CIT ( A) CONCERNED, MUMBAI THE DR C BENCH //TRUE COPY// [ BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI. ITA NO.6045/M/2017 M/S. PRATIK ENTERPRISES 3 DATE INITIAL WHETHER DICTATION PAD ENCLOSED WITH THE FILE : YES/ NO (AS THE ORDER HAS BEEN TYPED WITH THE HELP OF MANUSCRIPT) 1. DRAFT DICTATED ON 23.11.17 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 11 .12.17 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. DATE OF PRONOUNCEMENT SR.PS 7. FILE SENT TO THE BENCH CLERK SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER