ASST. CIT CIRCLE-9 (3)(1), MUMBAI V. M/S DEVU TOOLS PVT LTD., MUMBAI

ITA 6511/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0091 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 15-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHARAT ANDHLESR
• Keywords: Bogus purchase
• Section: 143(3); 133(6); 22; 148

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, VP AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO.6511/MUM/2019 ( / ASSESSMENT YEAR : 2010-11) A CIT CIRCLE - 9(3)(1) ROOM NO.215, 2 ND FLOOR AAYKAR BHAVAN, M.K. ROAD MUMBAI-400 020 VS. M/S. DEVU TOOLS PVT.LTD. A/44, 2 ND FLOOR, NANDJYOT INDL. ESTATE KURLA ANDHERI ROAD, SAFED POOL SAKINAKA, MUMBAI-400 072 )* ./ ./PAN/GIR NO. AAACD-8770-H ( *, /APPELLANT ) : ( -.*, / RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : SHRI BHARAT ANDHLE-SR. DR / DATE OF HEARING : 22/07/2021 / DATE OF PRONOUNCEMENT : 22/07/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY REVENUE FOR AY 2010-11 CONTE ST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-16 MUMBAI [CIT(A)] DATED 30/07/2019 WHICH HAS GRANTED PARTIAL RELIEF TO THE ASSESSEE ON ACCOUNT OF ALLEGED BOGUS PURCHASES. 2. AT THE TIME OF HEARING, NONE APPEARED FOR ASSESS EE. HOWEVER, THE MATERIAL ON RECORD WAS SUFFICIENT FOR DISPOSAL OF T HE APPEAL. THE LD. DR PLEADED FOR RESTORATION OF ASSESSMENT AS FRAMED BY LD. AO U/S 143(3) 2 R.W.S. 147 ON 30/03/2016. THE ASSESSEE BEING RESIDE NT CORPORATE ASSESSEE IS STATED TO BE ENGAGED AS MANUFACTURER AN D EXPORTER OF MOLDS & DYES. 3. THE ORIGINAL RETURN OF INCOME FILED BY THE ASSES SEE WAS SCRUTINIZED U/S 143(3) ON 31/12/2012. HOWEVER, THE CASE WAS REO PENED PURSUANT TO RECEIPT OF CERTAIN INFORMATION FROM SALES TAX DEPAR TMENT, MAHARASHTRA, WHEREIN IT TRANSPIRED THAT THE ASSESSEE MADE SUSPIC IOUS PURCHASES OF RS.638.05 LACS FROM 9 ENTITIES AS DETAILED IN THE A SSESSMENT ORDER. ACCORDINGLY, NOTICE U/S 148 WAS ISSUED ON 20/03/201 5. DURING ASSESSMENT PROCEEDINGS, THE ASSESSEE WAS DIRECTED T O SUBSTANTIATE THESE PURCHASES. 4. THE ASSESSEE COULD NOT PRODUCE ANY OF THE PARTIE S NOR COULD IT FILE ANY CONFIRMATION LETTERS FROM THE SUPPLIERS. THE AS SESSEE WAS UNABLE TO PRODUCE VARIOUS DOCUMENTS LIKE PURCHASE ORDERS, TRA NSPORT RECEIPTS, INSPECTION REPORT, COPIES OF INVOICE, DELIVERY CHAL LAN, LEDGER ACCOUNT, PAYMENT DETAILS AND RECONCILIATION OF THE SAME WITH THE BANK STATEMENTS. NOTICES ISSUED U/S 133(6) TO ALL THE SUPPLIERS DID NOT ELICIT ANY SATISFACTORY RESPONSE. THEREFORE, AFORESAID PURCHAS ES WERE DISALLOWED AND ADDED BACK TO THE INCOME OF THE ASSESSEE. 5. THE LD. CIT(A), AFTER CONSIDERING ASSESSEES SUB MISSIONS AND RELYING UPON TRIBUNALS ORDER IN ASSESSEES OWN CAS E FOR AY 2008-09, ESTIMATED THE ADDITIONS @10%. IT WAS NOTED THAT LD. AO HAD NOT DOUBTED THE CONSUMPTION / SALES AND THEREFORE, THE MOTIVE BEHIND OBTAINING BOGUS PURCHASE BILLS WAS TO SUPPRESS TRUE PROFITS. AGGRIEVED, THE REVENUE IS IN FURTHER APPEAL BEFORE US. 6. AFTER GOING IMPUGNED ORDER, WE FIND THAT LD. CIT (A) HAS CLINCHED THE ISSUE IN THE RIGHT PERSPECTIVE. THE SALES / CON SUMPTION OF MATERIAL 3 WAS NOT DOUBTED BY LD. AO AND THEREFORE, THE MOTIVE TO OBTAIN THE BOGUS BILLS WAS TO SUPPRESS THE PROFITS. THE ESTIMATION M ADE BY LD. CIT(A) WAS IN ACCORDANCE WITH ESTIMATION MADE BY TRIBUNAL IN E ARLIER YEARS. THEREFORE, FACTS BEING PARI-MATERIA THE SAME, NO FA ULT COULD BE FOUND IN THE IMPUGNED ORDER. 7. IN THE RESULT, THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED ON 22 ND JULY, 2021. SD/- SD/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI; DATED : 22/07/2021 SR.PS, JAISY VARGHESE !'#' / COPY OF THE ORDER FORWARDED TO : 1. *, / THE APPELLANT 2. -.*, / THE RESPONDENT 3. 5 ( ) / THE CIT(A) 4. 5 / CIT CONCERNED 5. 67-08 , 8 , / DR, ITAT, MUMBAI 6. 79:; / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.