GIRISH J. JAIN, MUMBAI V. INCOME TAX OFFICER -19(1)(3), MUMBAI

ITA 6474/MUM/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0513 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 03-11-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N HEMALATHA
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC , MUMBAI BE F ORE SHRI G.S.PANNU, ACCOUNTANT MEMBER AND SHRI RAVISH SOOD , JUDICIAL MEMBER ITA NO. 6474 /MUM/2017 (AY. 20 0 9 - 1 0 ) SHRI GIRISH JAIN B - 402, TULSI TOWER CHS HV COMPOUND, BEHIND CITY CENTRE S.V.ROAD, GOREGAON MUMBAI - 400062 PAN: AEXPJ5667D ...... APPELLANT VS. THE ITO WARD 19 (1) (3) , MATRU MANDIR, 2 ND FLOOR MUMBAI 400 007 .... RESPONDENT A PP ELLANT BY : NONE RESPONDENT BY : MS. N. HEMALATHA DATE OF HEARING : 30/01/2018 DATE OF PRONOUNCEMENT : 31 / 01 /2018 O RDER PER G.S.PANNU,A.M: THIS CAPTIONED APPEAL BY THE ASSESSEE IS DIRECTED AGAI NST AN ORDER PASSED BY CIT(A) - 3 0 , MUMBAI DATED 16/06 /201 7 FOR THE A.Y.2009 - 10 , WHICH IN TURN, ARISES OUT OF AN ORDER PASSED BY THE A SSESSING OFFICER UNDER SECTION 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) . 2 ITA NO.6 474 /MUM/2017 SHRI GIRISH J JAIN 2. AT THE TIME OF HEARING IT WAS NOTICED THAT INSPITE OF ISSUANCE OF NOTICE BY RPAD, NONE HA S APPEARED BY THE ASSESSEE NOR ANY ADJOURNMENT APPLICATION WAS MOVED, THEREFORE, CONSIDERING THE RULE 25 OF THE APPELLATE TRIBUNAL RULES, 1963, THE APPEAL OF THE ASSESSEE IS BEING DISPOSED OFF EXPARTE QUA THE APPELLANT AND AFTER HEARING RESPONDENT ON MERITS. 3 . THE ONLY ISSUE IN THIS APPEAL RELATES TO THE ADDITIO N ASSESSING TO THE RETURNED INCOME ON ACCOUNT OF TREATING THE PURCHASES MADE FROM CERTAIN PARTIES AS BOGUS. 4. IN BRIEF, THE RELEVANT FACTS ARE THAT ASSESSING OFFICER NOTED THAT ASSESSEE HAD EFFECTED PURCHASES OF RS.1,10,40,769/ - FROM FOUR PARTIES AS BOG US ON THE GROUND THAT THEY WERE LISTED AS HAWALA DEALERS BY MAHARASHTRA SALES TAX DEPARTMENT, MEANING THEREBY THE SAID PARTIES WERE ONLY ISSUING ACCOMMODATION BILLS AND NOT EFFECTING ACTUAL SALES / PURCHASES. THE ASSESSING OFFICER HOWEVER, DID NOT ASSESS T HE TOTAL INCOME OF PURCHASES AS INCOME BUT RESTRICT ED THE ADDITION TO 12.5% OF THE PURCHASES BEING PROFIT ELEMENT INVOLVED ON ACCOUNT OF NON - GENUINE PURCHASES THEREBY RESULTING IN ADDITION OF RS.13,80,097/ - TO THE RETURNED INCOME. NOTABLY, THE CIT(A) HAS A LLOWED FURTHER RELIEF IN THE SENSE THAT HE ALLOWED CREDIT FOR THE GROSS PROFIT ALREADY DECLARED WITH RESPECT TO THE IMPUGNED PURCHASE AS PER THE BOOKS OF ACCOUNTS . FOR THE BALANCE OF THE ADDITION SUSTAINED BY THE CIT(A) ASSESSEE IS IN FURTHER APPEAL BEFOR E US. 5. AFTER HAVING HEARD THE LEARNED DR AND PERUSING THE ORDER OF THE LOWER AUTHORITIES, WE FIND NO REASONS TO INTERFERE WITH THE DECISION OF THE CIT(A) 3 ITA NO.6 474 /MUM/2017 SHRI GIRISH J JAIN WHICH IS REASONABLE AND CONSIDERING THAT THE SAME IS BASED ON A PLAUSIBLE REASONING LAID DOWN BY TH E HONBLE GUJARAT HIGH COURT IN THE CASE OF SUMIT SHETH (2013) 38 TAXMANN.COM 385 (GUJ). THUS, THE ASSESSEE FAILS IN THIS APPEAL. 6. RESULTANTLY, THE APPEAL FILED BY ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 / 01 /20 1 8 S D/ - S D/ - ( RAVISH SOOD ) (G.S. PANNU) JUDICIAL MEMBER ACCOCUNTANT MEMBER MUMBAI , DATED 31 / 01 /2018 KARUNA , SR.PS CO PY 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