ROYAL AIRCON PRIVATE LIMITED, MUMBAI V. INCOME TAX OFFICER WARD-15(3)(1), MUMBAI

ITA 6046/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8097 (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: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 27-09-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAM TIWARI
• Keywords: Bogus purchase; Unexplained expenditure
• Section: 6; 10; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH SMC , MUMBAI BEFORE SHRI R.C. SHARMA , ACCOUNTANT MEMBER ITA NO S . 60 4 6 & 6047/ M/2017 ASSESSMENT YEAR S : 20 1 0 - 11 & 2011 - 12 M/S. ROYAL AIRCON PVT. LTD., A - 304, SILVER BIRCH, VASANT GARDEN, MULUND (WEST) M UMBAI 400 0 8 2 PAN: AA ECR 0058A VS. INCOME TAX OFFICER WARD 15(3)(1) MUMBAI (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI RAM TIWARI, D.R. DATE OF HEARING : 2 3 .11 .201 7 DATE OF PRONOUNCEMENT : 18 .12 .201 7 O R D E R PER R.C. SHARMA , ACCOUNTANT MEMBER: TH E S E ARE THE APPEAL S FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) FOR THE ASSESSMENT YEAR S 20 1 0 - 11 & 2011 - 12, IN THE MATTER OF ORDER PASSED UNDER SECTION 143 (3) OF THE AC T. 2. IN B OTH THE APPEALS, ASSESSEE IS AGGRIEVE D FOR ADDITION OF 15% OF THE BOGUS PURCHASES. 3. NOBODY APPEARED ON BEHALF OF THE ASSESSEE IN SPITE OF GIVING THE OPPORTUNITY OF HEARING. 4. I HAVE HEARD THE LD. D.R. AND HAVE ALSO GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND THAT ASSESSEE WAS FOUND TO HAVE TAKEN BOGUS PURCHASE BILLS FROM ALLEGED BOGUS SUPPLIERS. BEFORE THE AO THE AUTHORISED ITA NOS.6046 & 6047/M/2017 M/S. ROYAL AIRCON PVT. LTD. 2 REPRESENTATIVE OF THE ASSESSEE AGGRIEVED FOR ADDITION OF 15% OF THE BOGUS PURCHASES . THE CATEGORICAL OBSERVATION OF AO IN PARA 3.2 READS AS UNDER: 3.2 THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE COMPANY FILED A LETTER DATED 2701.2016 AND VIDE THIS OFFICE ORDER SHEET NOTING DATED 27.01.2016 STATED THAT THE ASSESSEE COMPANY IS UNABLE TO PRODUCE THE ABO VE PURCHASE PARTY. FURTHER THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE COMPANY ALSO AGREED FOR ADDITION TO AN AMOUNT OF RS . 5 , 25,000 / - I.E 15% OF RS . 34,93,39 8/ - ( THE TOTAL PURCHASES MADE FROM THE ABOVE FOUR PURCHASE HAWALA PARTIES) AS AS SESSEE INCOME FROM OTHER SOURCES BEING UNEXPLAINED EXPENDITURE. 5. BY THE IMPUGNED ORDER LD. CIT(A) CONFIRMED THE ACTION OF THE AO BY OBSERVING THAT NOBODY APPEARED ON BEHALF OF THE ASSESSEE IN SPITE OF GIVING SO MANY OPPORTUNITIES. 6. I HAVE CONSIDERED THE CONTENTION O F LD. D.R. AND FOUND THAT ADDITION OF 15% OF BOGUS PURCHASES WERE MADE BY THE AO ON THE PLEA THAT A.R. OF THE ASSESSEE AGREED FOR ADDITION IN SO FAR AS ASSESSEE WAS UNABLE TO PRODUCE THE PURCHASE PARTIES. ASSESSEE WAS GIVEN OPPORTUNITY , BUT NOBODY APPEARE D BEFORE THE LD. CIT(A). SINCE THE ADDITION SO MADE HAS BEEN AGREED BY THE ASSESSEE BEFORE THE AO, THERE IS NO REASON TO INTERFERE FOR THE ADDITION OF 15% OF BOGUS PURCHASES SO MADE BY THE ASSESSEE. FACTS AND CIRCUMSTANCES IN BOTH THE YEARS ARE SAME. AC CORDINGLY, WE CONFIRM THE ACTION OF THE LD. CIT(A) IN BOTH THE YEARS UNDER CONSIDERATION. 7. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 .1 2. 201 7 . SD/ - (R.C. SHARMA) ACCOUNTANT MEMBER MUMBAI, DATED : 18 . 12 . 201 7 . ITA NOS.6046 & 6047/M/2017 M/S. ROYAL AIRCON PVT. LTD. 3 * KISHORE OPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT ( A) CONCERNED, M UMBAI THE DR C BENCH //TRUE COPY// [ BY ORDER DY/ASSTT. REGISTRAR, ITA T, MUMBAI.