SHIBSHANKAR GHOSH, THANE V. ACIT CIR. 3, THANE, THANE

ITA 6487/MUM/2016

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6538 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: J
• Assessment Year: 2010-2011
• Appeal Filed On: 04-11-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: CHAUDHARY ARUN KUMAR SINGH
• Assessee Lawyers: SUBODH RATNAPARKHI
• Keywords: Reopening of assessment; Bogus purchase
• Section: 69C; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL G , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI RAM LAL NEGI , JM ITA NO. 6487/ MUM/20 1 6 & 6488/MUM/2016 ( ASSESSMENT YEAR : 2010 - 11 & 2011 - 12 ) SHRI SHIBSHANKAR GHOSH PROP. SIDDHARTH TRADING CO., 603, SANSKRI TI B COSMOS HERITAGE TIKUJINI WADI ROAD, THANE (W) 400 610 VS. ACIT, CIRCLE - 3 THANE PAN/GIR NO. AEDPG7709K ( APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY SHRI SUBODH RATNAPARKHI REVENUE BY SHRI CHAUDHARY ARUN KUMAR SINGH DATE OF HEARING 22 / 10 /201 8 DATE OF PRONOUNCEMENT 18 / 01 /201 9 / O R D E R PER R.C.SHARMA (A.M) : THESE ARE THE APPEALS FILED BY ASSESSEE AGAINST THE ORDER OF CIT(A) - 2 THANE, DATED 31/08/2016 FOR THE A.Y.2010 - 11 AND 2011 - 12 IN THE MATTER OF ORDER PASSED U/S.143(3) R.W. S.147 OF THE IT ACT. 2. IN THESE APPEALS, ASSESSEE IS AGGRIEVED FOR REOPENING OF ASSESSMENT AS WELL AS MERIT OF THE ADDITION UPHELD IN RESPECT OF BOGUS PURCHASES. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. ITA NO. 6487/MUM/2016 & 6488/MUM/2016 SHRI SHIBSHANKAR GHOSH 2 4. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE ASSESSEE IS PROPRIETOR OF M/S. SIDDHARTH TRADING CO., ENGAGED IN THE BUSINESS OF DISTRIBUTOR AND DEALER IN ENGINEERING GOODS. THE RETURN OF INCOME, DECLARING TOTAL INCOME AT RS.73,30,653/ - AND RS.1,00,48,153/ - WERE FILED ON 03.08.2010 AND 12. 08.2011, RESPECTIVELY. DURING THE YEARS UNDER CONSIDERATION, TH E ASSESSEE HAD DECLARED THE GP/NP OF RS. 2,23,98,261 / - AND RS. 75,63,093 / - , AGAINST GROSS RECEIPTS OF RS . 9,87,00,276 / - AND RS. 2,77,71,681 / - AND RS.1,01,63,153/ - ON GROSS RECEIPTS OF RS . 13,58,30,7 90 / - . THE RE - ASSESSMENT ORDERS U/S 143(3) R.W.S. 147 OF THE ACT, WERE COMPLETED ON 1 7.03.2015, AT TOTAL INCOME OF RS. 95,33,710 / - AND RS. 1,33,08,900 / - , AFTER MAKING DISALLOWANCES OF RS. 22,03,061 / - AND RS. 32,60,750 / - , ON ACCOUNT OF BOGUS PURCHASES, AS PER PR OVISIONS OF SEC 69C OF THE ACT. AGGRIEVED WITH THE ABOVE ORDERS, THE ASSESSEE PREFERRED THE APPEALS BEFORE THE CIT(A). 5. BY THE IMPUGNED ORDER, CIT(A) RESTRICTED THE ADDITION IN THE A.Y.2010 - 11 TO THE EXTENT OF RS.9,87,002/ - BY ESTIMATING GP @ 24% AND RS. 32,60,750/ - BY ESTIMATING GP OF 2 4% IN THE A.Y.2011 - 12. 6. ASSESSEE IS IN FURTHER APPEAL BEFORE US AGAINST THE ABOVE ORDER OF THE CIT(A). 7. WE HAVE CONSIDERED RIVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE GROUND RA ISED WITH REGARD TO REOPENING WAS NOT PRESSED BY LD. AR, THE SAME IS THEREFORE, DISMISSED IN LIMINI. IN SO FAR AS MERIT OF THE DISALLOWANCE IS CONCERNED, WE FOUND THAT ITA NO. 6487/MUM/2016 & 6488/MUM/2016 SHRI SHIBSHANKAR GHOSH 3 ASSESSEE HAS ALREADY DISCLOSED GP OF 23%, 20% IN THE A.Y.2010 - 11 AND 2011 - 12 UNDER CONSI DERATION. ASSESSEE HAD ALSO FILED QUANTITATIVE DETAILS OF PURCHASES AND SALES BEFORE THE LOWER AUTHORITIES. CONSIDERING THE VARIOUS JUDICIAL PRONOUNCEMENTS PLACED ON RECORD, VIS - - VIS GP RATE DECLARED BY THE ASSESSEE, WE DIRECT THE AO TO RESTRICT THE DISAL LOWANCE TO THE EXTENT OF 5% OF ALLEGED BOGUS PURCHASES. WE DIRECT ACCORDINGLY. 8 . IN THE RESULT, APPEALS ARE ALLOWED IN PART. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 18 / 01 /201 9 SD/ - ( RAM LAL NEGI ) SD/ - (R.C .SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 18 / 01 /201 9 KARUNA SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBA I 6. GUARD FILE. //TRUE COPY//