MOHAMMED HUSSAIN KHAN, MUMBAI V. INCOME TAX OFFICER-26(2)(3), MUMBAI

ITA 6163/MUM/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0718 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 09-10-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: N HEMALATHA
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH SMC, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER ITA NO.6161/M/2017 ASSESSMENT YEAR: 2009-10 SHRI ANIL DADARAO GARAD, PROP M/S. SHIVJEET CHEMICALS/SHIVANI CHEMICALS, W-34, MORIVAL, MIDC, AMBERNATH-421 501 PAN: AAZPG8732G VS. INCOME TAX OFFICER, WARD 2(1), 1 ST FLOOR, MOHAN PLAZA, WAYLE NAGAR, KHADAKPADA, KALYAN 421 301 (APPELLANT) (RESPONDENT) ITA NOS.6163, 6164 & 6165/M/2017 ASSESSMENT YEARS: 2009-10, 2010-11 & 2011-12 SHRI MOHAMMED HUSSAIN KHAN, A.H. TUBE CORPORATION, GALA NO.3, MOHILI VILLAGE, NEAR BURHANI ROPE FACTORY, KHERANI ROAD, SAKI NAKA, MUMBAI 400 072 PAN: AAEPK-1108P VS. INCOME TAX OFFICE R - 2 6 ( 2 ) (3) , C-11/508, BANDRA KURLA COMPLEX, MUMBAI, MAHARASHTRA-400 051 (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI S.M. MAKHIJA, A.R., SHRI KRUNA L SUCHAK, A.R., REVENUE BY : MS. N. HEMALATHA, D.R. DATE OF HEARING : 27.11.2017 DATE OF PRONOUNCEMENT : 12.01.2018 O R D E R PER D.T. GARASIA, JUDICIAL MEMBER: THE ABOVE TITLED APPEALS HAVE BEEN PREFERRED BY TWO DIFFERENT ASSESSEES AGAINST THE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] D ATED 13.07.2017 IN ITA NO.6161/M/2017 & ORS SHRI ANIL DADARAO GARAD & ORS 2 ITA NO.6161/M/2017, DATED 30.06.2017 IN ITA NO.6163 /M/2017 AND DATED 14.07.2017 IN ITA NOS.6164 & 6165/M/2017. 2. DURING THE COURSE OF HEARING WE FIND THAT THE IT A NO.6163/M/2017 IS TIME BARRED BY 11 DAYS, ITA NOS.6 164 & 6165/M/2017 ARE TIME BARRED BY 17 DAYS. THE ASSESS EE HAS GIVEN THE AFFIDAVIT AND STATED THAT ASSESSEE WAS BUSY IN BUSI NESS WORK AND HE WAS OUT OF STATION FOR SOME TIME. THEREFORE, THERE WAS DELAY OF 11 TO 17 DAYS. THEREFORE, WE CONDONE THE DELAY. ITA NO.6161/M/2017 FOR A.Y. 2009-10 3. THE BRIEF FACTS OF THE CASE ARE THAT DURING THE YEAR UNDER CONSIDERATION THE ASSESSING OFFICER (HEREINAFTER RE FERRED TO AS THE AO) FOUND THAT ASSESSEE HAD MADE BOGUS PURCHASES FR OM FOLLOWING PARTIES: SR. NO. NAME OF THE PARTY AMOUNT OF PURCHASE (RS) 1. M/S. AMI TRADERS 3,03,909/- 2. M/S. SMARTLINK TRADEX PVT. LTD. 98,227/- 3. M/S. BHUMI ENTERPRISES 8,81,530/- 4. M/S. MAGNUM ENTERPRISES 3,24,881/- 5. M/S. LIBERTY TRADERS 3,77,541/- 6. M/S. SHAH ENTERPRISES 3,42,521/- 7. M/S. SHAH INDUSTRIES 3,47,306/- TOTAL 26,75,915/- 3. THE ASSESSEE WAS ASKED TO PRODUCE THE ABOVE PART IES FOR VERIFICATION. THERE WAS NO COMPLIANCE OF NOTICE UND ER SECTION 133(6). THEREFORE, THE AO HAS MADE THE ADDITION ON ACCOUNT OF BOGUS PURCHASES OF RS.26,75,915/-. ITA NO.6161/M/2017 & ORS SHRI ANIL DADARAO GARAD & ORS 3 4. MATTER CARRIED TO THE LD. CIT(A) AND THE LD. CIT (A) HAS PARTLY ALLOWED THE CLAIM OF THE ASSESSEE BY CONFIRMING THE ADDITION @ 15% OF THE BOGUS PURCHASES. 5. I HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE P ARTIES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE I FIND T HAT THE ASSESSEE HAS ALREADY DECLARED THE GP. HENCE, AO IS DIRECTED TO ALLOW THE CREDIT OF GP DECLARED BY THE ASSESSEE AND DEDUCT THE SAME FRO M 15% AND ESTIMATE THE GP @ 8% OF TOTAL BOGUS PURCHASES WHICH COMES TO RS.2,14,073/-. 6. IN THE RESULT, ASSESSEES APPEAL IS PARTLY ALLOW ED. ITA NO.6163/M/2017 FOR A.Y 2009-10 7. IN THIS APPEAL, DURING THE YEAR, THE AO FOUND TH AT ASSESSEE HAD MADE PURCHASES FROM FOLLOWING PARTIES: SR. NO. NAME OF THE COMPANY AMOUNT OF PURCHASE (RS) 1. M/S. SIDDHI VINAYAK STEEL 4,48,183 / - 2. M/S. CHANCHAL TUBE CORPORATION 3,58,077/- 3. M/S. SURAT TUBE CORPORATION 5,74,548/- 4. M/S. ASIAN STEEL 5,85,329/- 5. M/S. SHIV INDUSTRIES 8 , 28 , 204 / - 6. M/S. REHBAR ENTERPRISES 8,31,316/- 7. M/S. BPT TUBE CORPORATION 8,57,763/- 8 M/S. MARUTI STEEL TRADERS 17,88,660/- TOTAL 62,72,080/ - 8. I FIND THAT SIMILAR GROUNDS HAVE BEEN TAKEN IN I TA NO.6161/M/2017 FOR A.Y. 2009-10. HENCE, FOLLOWING THE SAME RATIO I DECIDE THIS APPEAL ALSO. ACCORDINGLY, THE AO IS DIRECTED TO ESTIMATE THE GP @ 8% WHICH COMES TO RS.5,01,766/-. ITA NO.6161/M/2017 & ORS SHRI ANIL DADARAO GARAD & ORS 4 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ITA NO.6164/M/2017 FOR A.Y 2010-11 10. IN THIS APPEAL, DURING THE YEAR, THE AO FOUND T HAT ASSESSEE HAD MADE PURCHASES FROM FOLLOWING PARTIES: SR. NO. NAME OF THE COMPANY AMOUNT OF PURCHASE (RS) 1. M/S. SIDDHI VINAYAK STEEL 9,18,436/- 2. M/S. CHANCHAL TUBE CORPORATION 7,87,420/- 3. M/S. SURAT TUBE CORPORATION 5,10,123/- 4. M/S. ASIAN STEEL 5,32,221/- 5. M/S. BPT TUBE CORPORATION 6,01,499 / - 6. M/S. REHBAR ENTERPRISES 6,95,666/- 7. M/S. MARUTI STEEL TRADERS 15,66,825/- 8 M/S. SHIV INDUSTRIES 19,66,896/- TOTAL 75 ,7 9 ,08 6 / - 8. I FIND THAT SIMILAR GROUNDS HAVE BEEN TAKEN IN I TA NO.6161/M/2017 FOR A.Y. 2009-10. HENCE, FOLLOWING THE SAME RATIO I DECIDE THIS APPEAL ALSO. ACCORDINGLY, THE AO IS DIRECTED TO ESTIMATE THE GP @ 8% WHICH COMES TO RS.6,06,327/-. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ITA NO.6165/M/2017 FOR A.Y 2011-12 10. IN THIS APPEAL, DURING THE YEAR, THE AO FOUND T HAT ASSESSEE HAD MADE PURCHASES FROM FOLLOWING PARTIES: SR. NO. NAME OF THE COMPANY AMOUNT OF PURCHASE (RS) 1. M/S. S.K. TRADING CO. 6,35,254/- 2. M/S. SIDDHI VINAYAK STEEL 8,40,297/- 3. M/S. CHANCHAL TUBE CORPORATION 4,00,038/- 4. M/S. SURAT TUBE CORPORATION 6,80,199/- 5. M/S. RADHIKA ENTERPRISES 5,56,131/- 6. M/S. GOLDEN ENTERPRISES 6,20,116/- 7. M/S. SHREE VINAYAK ENTERPRISES 7,12,397/- 8. M/S. REHBAR ENTERPRISES 10,04,567/- ITA NO.6161/M/2017 & ORS SHRI ANIL DADARAO GARAD & ORS 5 9. M/S. BPT TUBE CORPORATION 11,18,291/- 10. M/S. MARUTI STEEL TRADERS 21,20,851/- 11. M/S. SHIV INDUSTRIES 22,61,468/ - TOTAL 1,09,49,609/- 8. I FIND THAT SIMILAR GROUNDS HAVE BEEN TAKEN IN I TA NO.6161/M/2017 FOR A.Y. 2009-10. HENCE, FOLLOWING THE SAME RATIO I DECIDE THIS APPEAL ALSO. ACCORDINGLY, THE AO IS DIRECTED TO ESTIMATE THE GP @ 8% WHICH COMES TO RS.8,75,969/-. 9. IN THE RESULT, ALL THE FOUR APPEALS OF THE ASSES SEE ARE PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 12.01.2018. SD/- (D.T. GARASIA) JUDICIAL MEMB ER MUMBAI, DATED: 12.01.2018. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.