ITO -WARD - 3(4), KALYAN V. SATYANARAYANAN S. KOMBIL, DOMBIVALI

ITA 6185/MUM/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8687 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 30-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R BHOOPATHI
• Assessee Lawyers: RUTUJA PAWAR
• Keywords: Bogus purchase; Reassessment proceedings
• Section: 143(1); 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC , MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO.6185/MUM/2018(A.Y. 2010-11) INCOME TAX OFFICER, WARD-3(4), KALYAN, 2 ND FLOOR, RANI MANSION, MURBAD ROAD, KALYAN(W) 421 301. ...... APPELLAN T VS. SHRI SATYANARAYANAN S. KOMBIL, FLAT NO.A-6, BLDG. NO.10, SAPTASTAR CHS, STAR COLONY, MANPADA ROAD, DOMBIVILI(E)-421 201 PAN:ALEPS 3819G ..... RESPONDENT APPELLANT BY : SHRI R. BHOOPATHI RESPONDENT BY : MS. RUTUJA PAWAR DATE OF HEARING : 12/09/2019 DATE OF PRONOUNCEMENT : 12/09/2019 ORDER PER VIKAS AWASTHY, JM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF CIT(A) - 1, THANE DATED 28/08/2018 FOR THE ASSESSMENT YEAR 2 010-11. 2. THE REVENUE IN APPEAL HAS RAISED AS MANY AS SEVE N GROUNDS, ASSAILING THE FINDINGS OF CIT(A) IN RESTRICTING THE ADDITION ON ACCOUNT OF ALLEGED BOGUS PURCHASES BY THE ASSESSEE TO 25% OF TOTAL SUCH PURCHASES 3. THE BRIEF FACTS AS EMANATING FROM THE RECORDS AR E; THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRADING IN HYDRAULIC EQU IPMENTS, JACKS, HOSE 2 ITA NO.6185/MUM/2018(A.Y. 2010-11) PIPES & PROVIDING LABOUR SERVICES. ASSESSEE FILED HIS RETURN OF INCOME FOR THE IMPUGNED ASSESSMENT YEAR ON 26/09/2010 DECLARIN G TOTAL INCOME OF RS.6,63,840/-. THE RETURN OF THE ASSESSEE WAS PROC ESSED UNDER SECTION 143(1) OF THE ACT . THEREAFTER, ON THE BASIS OF IN FORMATION RECEIVED FROM MAHARASHTRA SALES TAX DEPARTMENT, THE ASSESSMENT IN THE CASE OF ASSESSEE WAS REOPENED. IN REASSESSMENT PROCEEDINGS THE ASSESSING OFFICER HELD THAT THE ASSESSEE HAS INDULGED IN BOG US PURCHASES FROM DECLARED HAWALA DEALER M/S. NEW ZONE MULTITRADE PV T. LTD. AND MADE ADDITION OF THE ENTIRE PURCHASES I.E. RS.5,18,625/- MADE FROM THE SAID PARTY. AGGRIEVED BY THE ASSESSMENT ORDER DATED 16/ 10/2014 PASSED UNDER SECTION 143(1) R.W.S.147 OF THE ACT, THE ASS ESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) AFTER CONSIDERING TH E FACTS OF THE CASE AND DOCUMENTS ON RECORD RESTRICTED THE ADDITION TO 25% OF ALLEGED BOGUS PURCHASES. AGAINST THE FINDING OF THE CIT(A), REVE NUE IS IN APPEAL BEFORE THE TRIBUNAL. 4. SHRI R.BHOOPATHI REPRESENTED THE DEPARTMENT VEHE MENTLY DEFENDED THE ASSESSMENT ORDER AND PRAYED FOR REVERS ING THE FINDING OF CIT(A). 5. ON THE OTHER HAND, MS. RUTUJA PAWAR APPEARING O N BEHALF OF THE ASSESSEE SUBMITTED THAT THE SALES MADE BY THE ASSES SEE HAVE BEEN ACCEPTED BY THE DEPARTMENT, HENCE, THE ENTIRE PURCH ASES CANNOT BE HELD TO BE BOGUS. THE ASSESSEE FURNISHED VARIOUS DOCUME NTS TO PROVE GENUINENESS OF THE PURCHASES, HOWEVER, THE ASSESSIN G OFFICER HAS NOT ACCEPTED THE SAME. THE LD. AUTHORIZED REPRESENTATI VE SUBMITTED THAT THE ASSESSEE HAS ACCEPTED THE ADDITION TO THE EXTENT C ONFIRMED BY THE CIT(A). 3 ITA NO.6185/MUM/2018(A.Y. 2010-11) 6. BOTH SIDES HEARD. ORDERS OF THE AUTHORITIES BELO W PERUSED. THE SOLITARY ISSUE RAISED IN THE APPEAL BY REVENUE IS AGAINST RESTRICTING THE ADDITION IN RESPECT OF ALLEGED BOGUS PURCHASES MADE BY THE ASSESSEE FROM SUSPICIOUS DEALER. THE ASSESSING OFFICER MADE ADDI TION OF THE ENTIRE PURCHASES OF RS.5,18,625/- MADE BY THE ASSESSEE FROM M/S. NEW ZONE MULTITRADE PVT. LTD. HOLDING THE SAME TO BE BOGUS. THE CIT(A) RESTRICTED THE ADDITION TO 25% OF THE SAID BOGUS PURCHASES I. E. RS.1,29,656/-. IT IS AN UNDISPUTED FACT THAT THE REVENUE HAS NOT RAISED ANY DOUBT OVER THE SALES MADE BY THE ASSESSEE. WITHOUT PURCHASES THERE CANN OT BE SALES. THE CIT(A) HAS ESTIMATED GP AT 25% AFTER CONSIDERING TH E GP DECLARED BY THE ASSESSEE AT 21.11%. TAKING INTO CONSIDERATION, E NTIRETY OF FACTS WE FIND THAT THE ORDER OF THE CIT(A) IS REASONABLE AND JUST IFIED. WE SEE NO REASON TO INTERFERE WITH THE SAME. CONSEQUENTLY, THE SAME IS UPHELD. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D BEING DEVOID OF ANY MERIT. ORDER PRONOUNCED IN THE OPEN COURT AFTER HEARING TH E APPEAL ON THURSDAY, THE 12 TH DAY OF SEPTEMBER 2019. SD/- SD/- (RAJESH KUMAR ) (VIKAS AWASTHY) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED 12/09/2019 VM , SR. PS(O/S) 4 ITA NO.6185/MUM/2018(A.Y. 2010-11) COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI