ITO 27 (1)(4), MUMBAI V. FGB MANUFACTURING CO. , MUMBAI

ITA 6314/MUM/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0292 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 02-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JYOTHILAKSHMI NAYAK
• Section: 133(6); 201; 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY , JUDICIAL MEMBER AND SHRI N.K. PRADHAN , ACCOUNTANT MEMBER ITA NO. 6314 / MUM ./201 8 ( ASSESSMENT YEAR : 20 10 11 ) INCOME TAX OFFICER WARD 27 ( 1 )( 4 ), MUMBAI . APPELLANT V/S M/S. FGB MANUFACTURING CO. 209 C, GHATKOPAR INDUSTRIAL ESTATE AMRUT NAGER, LBS MARG GHATKOPAR (W), MUMBAI 400 086 PAN : AAAFF5076D . RESPONDENT REVENUE BY : SMT. JYOTHI LAKSHMI NAYAK ASSESSEE BY : SHRI RAJESH S. SHAH DATE OF HEARING 2 7 . 11 .2019 DATE OF ORDER 19.12.2019 O R D E R PER SAKTIJIT DEY, J.M. THE CAPTION APPEAL ARISE S OUT OF ORDER DATED 12 TH JULY 201 8 , PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 24 , MUMBAI, PERTAINING TO THE ASSESSMENT YEAR 20 1 0 11 . 2. BRIEF FACTS ARE, THE ASSESSEE COMPANY IS A MANUFACTURER OF PRESSURE GAUGES. FOR THE ASSESSMENT YEAR UNDER CONSIDERATION, THE ASSESSEE FILED ITS RETURN OF INCOME ON 6 TH JULY 2010, DECLARING TOTAL 2 M/S. FGB MANUFACTURING CO. INCOME OF ` 2,14,799. ON THE BASIS OF INFORMATION RECE IVED FROM THE INVESTIGATION WING OF THE DEPARTMENT AS WELL AS THE SALES TAX DEPARTMENT, GOVERNMENT OF MAHARASHTRA, INDICATING THAT PURCHASES WORTH ` 11,15,571, CLAIMED TO HAVE BEEN MADE DURING THE YEAR ARE NON GENUINE, THE ASSESSING OFFICER RE OPENED THE ASSESSMENT UNDER SECTION 147 OF THE ACT. DURING THE ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER CALLED UPON THE ASSESSEE TO PROVE THE GENUINENESS O F SUCH PURCHASES THROUGH PROPER DOCUMENTARY EVIDENCES. FURTHER, TO INDEPENDENTLY VERIFY SUCH PURCHASES, THE ASSESSING OFFICER ISSUED NOTICE S UNDER SECTION 133(6) OF THE ACT TO THE CONCERNED SELLING DEALER S . AS OBSERVED BY THE ASSESSING OFFICER , ALL SUCH NO TICES RETURNED BACK UN SERVED BY THE POSTAL AUTHORITIES. THUS, HOLDING THAT THE ASSESSEE WAS UNABLE TO PROVE THE PURCHASES, THE ASSESSING OFFICER TREATED THEM AS NON GENUINE AND ADDED BACK TO THE INCOME OF THE AS SESSEE. THE ASSESSEE CHALLENGED THE ADDITION BEFORE THE FIRST APPELLATE AUTHORITY. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE IN THE CONTEXT OF FACTS AND MATERIAL ON RECORD, LEARNED COMMISSIONER (APPEALS) RESTRICTED THE ADDITION TO 12.5% OF THE PURCHASES. 3. THE LEARNED DEPARTMENTAL REPRESENTAT IVE SUBMITTED , SINCE THE ASSESSEE HAS FAILED TO PROVE THE PURCHASES THROUGH PROPER DOCUMENTARY EVIDENCES, THE ASSESSING OFFICER WAS JUSTIFIED IN MAKING 100% ADDITION . 3 M/S. FGB MANUFACTURING CO. 4. THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED , WHILE DECIDING ASSESSEES APPEAL ON THE IDENTICAL ISSUE FOR THE VERY SAME ASSESSMENT YEAR, THE TRIBUNAL HAS RESTRICTED THE ADDITION TO 12.5% OF THE NON GENUINE PURCHASES. THUS, HE SUBMITTED , REVENUES APPEAL IN EFFECT HAS BECOME INFRUCTUOUS. 5. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. AS COULD BE SEEN FROM THE FACTS ON RECORD , AGAINST THE DECISION OF LEARNED COMMISSIONER (APPEALS) IN RESTRICTING THE ADDITION ON ACCOUNT OF NON GENUINE PURCHASES TO THE GROSS PROFIT RATE OF 27.32% , BOTH , THE ASSESSEE AS WELL AS REVENUE CAME IN APPEAL BEFORE THE TRIBUNAL. HOWEVER, ASSESSEES APPEAL BEING ITA NO.4994/MUM./2018, CAME UP FOR HEARING BEFORE THE TRIBUNAL EARLIER AND VIDE ORDER DATED 11 TH SEPTEMBER 2019, THE TRIBUNAL HAS DISPOSED OFF THE SAID APPEAL BY RESTRICTING THE ADDITION TO 12.5% OF THE NON GENUINE PURCHASES. SINCE , THE PRESENT APPEAL OF THE REVENUE ON IDENTICAL ISSUE ARISE S OUT OF THE VERY SAME ORDER OF LEARNED COMMISSIONER (APPEALS) AND THE TRIBUNAL WHILE DECIDING THE ISSUE IN ASSESSEES APPEAL , REFERRED TO ABOVE , HAS R ESTRICTED THE ADDITION TO 12.5% OF THE NON GENUINE PURCHASES , REVENUES APPEAL, IN OUR CONSIDERE D OPINION, HAS BECOME REDUNDANT. ACCORDINGLY, GROUNDS RAISED ARE DISMISSED. 4 M/S. FGB MANUFACTURING CO. 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19.12.2019 SD/ - N.K.PRADHAN ACCOUNTANT MEMBER SD/ - SAKTIJIT DEY JUDICIAL MEMBER MUMBAI, DATED: 19.12.2019 COPY OF THE ORDER FORWARDED TO : (1) THE ASSESSEE; (2) THE REVENUE; (3) THE CIT(A); (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, ITAT, MUMBAI; (6) GUARD FILE . TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETARY ASSISTANT REGISTRAR ITAT, MUMBAI