ITO - 12 (1)(2), MUMBAI V. ANMOL TOYS PVT. LTD., MUMBAI

ITA 6263/MUM/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3187 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 01-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R BHOOPATHILD
• Assessee Lawyers: MANISH J SHETHLD
• Keywords: Bogus purchase
• Section: 142(1); 133(6); 143(2); 148

Judgement Text

ITA NO.6263/MUM/2018 M/S. ANMOL TOYS P.LTD. ASSESSMENT YEAR :2010-11 1 - IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI . . , , BEFORE HONBLE SHRI C.N. PRASAD, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.6263/MUM/2018 ( / ASSESSMENT YEAR: 2010-11 ) INCOME TAX OFFICER - 13 (1) (2) ROOM NO.146A,1 ST FLOOR, AAYKAR BHAVAN M.K. ROAD, MUMBAI-400 020. / VS. M/S. ANMOL TO Y S PVT.LTD. 117 AB GOVT. INDUSTRIAL ESTATE CHARKOP, KANDIVALI (W) MUMBAI-400 647 ! ./ ./PAN/GIR NO. AAACA-5068-R ( !# /APPELLANT ) : ( $!# / RESPONDENT ) REVENUE BY : SHRI R. BHOOPATHI LD. DR ASSESSEE BY : SHRI MANISH J. SHETH-LD.AR / DATE OF HEARING : 02/12/2019 / DATE OF PRONOUNCEMENT : 02/12/2019 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2010-11 CONTEST THE ORDER OF LD. COMMIS SIONER OF INCOME- TAX (APPEALS)-20, MUMBAI, [IN SHORT REFERRED TO AS CIT(A)], APPEAL NO. CIT(A)-20/IT-10139/17-18 DATED 08/06/2018. IT IS EV IDENT FROM GROUNDS ITA NO.6263/MUM/2018 M/S. ANMOL TOYS P.LTD. ASSESSMENT YEAR :2010-11 2 OF APPEAL THAT THE SOLE ISSUE THAT ARISES FOR OUR C ONSIDERATION IS ADDITION ON ACCOUNT OF ALLEGED BOGUS PURCHASES. 2. WE HAVE CAREFULLY HEARD THE RIVAL SUBMISSIONS, P ERUSED RELEVANT MATERIAL ON RECORD AND DELIBERATED ON ARGUMENTS ADV ANCED BEFORE US. 3.1 FACTS ON RECORD WOULD REVEAL THAT THE ASSESSEE BEING RESIDENT CORPORATE ASSESSEE STATED TO BE ENGAGED IN MANUFACT URING OF PLASTIC GUNS AND TOYS, WAS ASSESSED FOR IMPUGNED AY U/S. 14 3(3) R.W.S. 147 ON 27/11/2017 WHEREIN THE INCOME OF THE ASSESSEE WAS D ETERMINED AT RS.14.67 LACS AFTER SOLE ADDITION OF ALLEGED BOGUS PURCHASES FOR RS.3.20 LACS AS AGAINST RETURNED INCOME OF RS.11.46 LACS FI LED BY THE ASSESSEE ON 26/09/2010 WHICH WAS PROCESSED U/S.143(1). 3.2 PURSUANT TO RECEIPT OF CERTAIN INFORMATION FROM DGIT (INVESTIGATION), MUMBAI, IT TRANSPIRED THAT THE ASSESSEE OBTAINED BO GUS PURCHASES BILLS AGGREGATING TO RS.12.83 LACS FROM 5 ENTITIES, THE D ETAILS OF WHICH HAVE ALREADY BEEN EXTRACTED IN PARA-3 OF THE QUANTUM ASS ESSMENT ORDER. ACCORDINGLY, THE CASE WAS REOPENED AS PER DUE PROCE SS OF LAW VIDE ISSUANCE OF NOTICE U/S 148 ON 22/03/2017 WHICH WAS FOLLOWED BY STATUTORY NOTICES U/S 143(2) & 142(1) WHEREIN THE A SSESSEE WAS DIRECTED TO SUBSTANTIATE THE PURCHASE TRANSACTIONS. 3.3 THE ASSESSEE DEFENDED THE PURCHASES BY FILING C OPIES OF PURCHASE BILLS, LEDGER EXTRACTS, BANK STATEMENTS EVIDENCING PAYMENTS THROUGH BANKING CHANNELS. HOWEVER, THE ASSESSEE EXPRESSED I NABILITY TO PRODUCE ANY OF THE SUPPLIER TO CONFIRM THE TRANSACTIONS. TH E NOTICES ISSUED U/S 133(6) TO CONFIRM THE TRANSACTIONS, DID NOT ELICIT SATISFACTORY RESPONSE. THE FACTUAL MATRIX LED LD. AO TO DISBELIEVE THE SAI D TRANSACTIONS AND ITA NO.6263/MUM/2018 M/S. ANMOL TOYS P.LTD. ASSESSMENT YEAR :2010-11 3 ACCORDINGLY, THE ASSESSEE WAS SADDLED WITH ESTIMATE D ADDITIONS TO THE EXTENT OF 25% OF THESE PURCHASES. 4. UPON FURTHER APPEAL, LEARNED FIRST APPELLATE AUT HORITY, FINDING THE ESTIMATION OF 25% TO BE ON THE HIGHER SIDE, REDUCED THE ESTIMATION TO 12.5%. AGGRIEVED, THE REVENUE IS UNDER FURTHER APPE AL BEFORE US. 5. AFTER CAREFUL CONSIDERATION, WE ARE OF THE CONSI DERED OPINION THAT THERE COULD BE NO SALE WITHOUT ACTUAL PURCHASE OF M ATERIAL KEEPING IN VIEW THE ASSESSEES NATURE OF BUSINESS. UNDISPUTEDL Y THE ASSESSEE WAS IN POSSESSION OF PRIMARY PURCHASE DOCUMENTS AND THE PAYMENTS TO THE SUPPLIERS WERE THROUGH BANKING CHANNELS. HOWEVER, A T THE SAME TIME, THE ASSESSEE MISERABLY FAILED TO SUBSTANTIATE THE D ELIVERY OF MATERIAL AND ALSO FAILED TO PRODUCE ANY OF THE SUPPLIERS TO CONF IRM THE TRANSACTIONS. THE ONUS CASTED UPON ASSESSEE, IN THIS REGARD, REMA INED UNDISCHARGED. THEREFORE, THE SAID FACTUAL MATRIX WAS A FIT CASE F OR ESTIMATION OF INCOME AGAINST SUSPICIOUS PURCHASES MADE BY THE ASSESSEE. KEEPING IN VIEW THE FACT THAT THE ASSESSEE WAS ENGAGED IN MANUFACTU RING AND DEALING IN PLASTIC ITEMS, THE ESTIMATION OF 12.5% AS MADE BY L D. CIT(A) COULD NOT BE SAID TO BE UNREASONABLE FROM ANY ANGLE. THEREFOR E, BY CONFIRMING THE SAME, WE DISMISS THE APPEAL. 6. RESULTANTLY, THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 02 ND DECEMBER, 2019. SD/- SD/- (C.N. PRASAD) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 02/12/2019 SR.PS, JAISY VARGHESE ITA NO.6263/MUM/2018 M/S. ANMOL TOYS P.LTD. ASSESSMENT YEAR :2010-11 4 6789:69 / COPY OF THE ORDER FORWARDED TO : 1. !# / THE APPELLANT 2. $!# / THE RESPONDENT 3. F ( ) / THE CIT(A) 4. F / CIT CONCERNED 5. < , , / DR, ITAT, MUMBAI 6. JKL / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.