ITO 33 (1)(5), MUMBAI V. HARSHAD M. PADIA, MUMBAI

ITA 6218/MUM/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6379 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 01-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SMITA VERMA
• Keywords: Bogus purchase
• Section: 133(6)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI , BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 6218 //20 19 (. . 2009-10 ) ITA NO.6218/MUM/2019 (A.Y.2009-10) ITO-33(1)(5), KAUTILYA BHAVAN, 9 TH FLOOR, ROOM NO. 951, BKC, BANDRA (E), MUMBAI-400051 ...... ' / APPELLANT VS. HARSHAD M. PADIA, KHYATI HYDRAULICS, 13, GOPALKUNJ, SAROJINI NAIDU, KANDIVALI(W), MUMBAI-400067. PAN: AABPP1488Q ..... (*/ RESPONDENT ' +/ APPELLANT BY : MS. SMITA VERMA (* +/ RESPONDENT BY : NONE , / DATE OF HEARING : 03/05/2021 , / DATE OF PRONOUNCEMENT : 16/07/2021 / ORDER PER VIKAS AWASTHY, J.M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-45, MUMBAI [HE REINAFTER REFERRED TO AS THE CIT(A)] DATED 05.04.2019 FOR THE ASSESSMENT Y EAR (AY) 2009-10. 2. MS. SMITA VERMA REPRESENTING THE DEPARTMENT SUBM ITTED THAT THE ASSESSEE HAS OBTAINED BOGUS PURCHASE BILLS AGGREGAT ING TO RS. 18,85,322/- FROM 2 . 6218 //20 19 (. .2009-10 ) ITA NO.6218/MUM/2019 (A.Y.2009-10) VARIOUS (6) DEALERS, DECLARED AS HAWALA OPERATORS B Y THE SALES TAX DEPARTMENT, GOVERNMENT OF MAHARASHTRA. DURING ASSESSMENT PROCEE DINGS, THE ASSESSEE FAILED TO DISCHARGE HIS ONUS IN PROVING GENUINENESS OF THE DEALERS AND THE PURCHASES MADE FROM THEM. THE NOTICES ISSUED TO DEA LERS BY THE ASSESSING OFFICER (AO) UNDER SECTION 133(6) OF THE INCOME TAX ACT, 1961 [HEREINAFTER REFERRED TO AS THE ACT] WERE RETURNED BACK UNSERV ED BY POSTAL AUTHORITIES WITH REMARKS LEFT. ONLY ONE DEALER I.E. M/S AAYUS HI ENTERPRISES RESPONDED TO THE NOTICE, DENYING ANY TRANSACTIONS WITH THE ASSES SEE. NO CONFIRMATIONS FROM OTHER DEALERS WERE FILED BY THE ASSESSEE. NO DOCUME NT TO PROVE TRAIL OF GOODS WAS FILED BY THE ASSESEEE TO PROVE GENUINENESS OF T HE TRANSACTIONS. THE AO DISALLOWED ENTIRE PURCHASES MADE FROM M/S AAYUSHI E NTERPRISES I.E. RS. 69,750/- AND IN RESPECT OF REMAINING UNPROVED PURCH ASES, THE AO MADE ESTIMATED DISALLOWANCE OF 20%. THUS, THE AO MADE DI SALLOWANCE OF RS. 4,32,864/- ON NON-GENUINE PURCHASES. IN FIRST APPEL LATE PROCEEDINGS, THE CIT(A) RESTRICTED DISALLOWANCE OF 12.5% OF TOTAL UNPROVED PURCHASES. THE LD. DR PRAYED FOR REVERSING THE FINDINGS OF CIT(A) AND UPH OLDING THE ADDITION MADE BY AO. 3. SUBMISSIONS MADE BY LD. DR HEARD, ORDERS OF AUTH ORITIES BELOW EXAMINED. UNDISPUTEDLY, THE ASSESSEE FAILED TO DISC HARGE HIS ONUS IN PROVING AUTHENTICITY OF SUSPICIOUS DEALERS AND PURCHASES MA DE FROM THEM. SINCE, THE AO ACCEPTED SALES TURNOVER DECLARED BY ASSESSEE, TH E AO ESTIMATED PROFIT MARGIN ON ALLEGED BOGUS PURCHASES AT 20%. THE AO MA DE ENTIRE ADDITION ON ALLEGED BOGUS PURCHASE IN RESPECT OF M/S AAYUSHI EN TERPRISES AS THE SAID VENDOR HAD DENIED ANY BUSINESS DEALINGS WITH THE AS SESSEE. IN FIRST APPELLATE PROCEEDINGS, THE CIT(A) UPHELD THE FINDINGS OF AO T O THE EXTENT THAT THE 3 . 6218 //20 19 (. .2009-10 ) ITA NO.6218/MUM/2019 (A.Y.2009-10) ASSESSEE HAS INDULGED IN OBTAINING BOGUS PURCHASE B ILLS, HOWEVER, THE CIT(A) RESTRICTED THE ADDITION TO 12.5% OF TOTAL UNPROVED PURCHASES INCLUDING PURCHASES FROM AAYUSHI ENTERPRISES. I CONCUR WITH T HE FINDINGS OF CIT(A), THEREFORE, THE IMPUGNED ORDER IS UPHELD AND APPEAL OF THE REVENUE IS DISMISSED, SANS MERIT. ORDER PRONOUNCED IN THE OPEN COURT ON FRIDAY , THE 16 TH DAY OF JULY, 2021. SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, 1/ DATED: 16/07/2021 SK, PS ( 2 ( 2 ( 2 ( 2 COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT , 2. (* / THE RESPONDENT. 3. 3 ( )/ THE CIT(A)- 4. 3 CIT 5. ( , . . . , / DR, ITAT, MUMBAI 6. 7 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI