HYDRAULIC TUBES & VALVES CO, Mumbai V. ITO 17 (1)(5), Mumbai

ITA 653/MUM/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6658 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 06-02-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R K GUBGOTRA
• Assessee Lawyers: SAMIR SHAIKH
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, ACCOUNTANT MEMBER ITA NO. 537/MUM/2019 ( ASSESSMENT YEAR: 2009-10) I.T.O.-17(1)(5), ROOM NO. 117, 1 ST FLOOR, AAYAKAR BHAVAN MUMBAI-400020. VS. M/S HYDRAULIC TUBES & VALVES CO., UNIQUE HOUSE, 72/74, NAGDEVI STREET, GROUND FLOOR, MUMBAI-400003. PAN/GIR NO.AACFH 7282 D (APPELLANT ) .. (RESPONDENT ) ITA NO. 652 & 653/MUM/2019 ( ASSESSMENT YEAR: 2009-10 & 2010-11) M/S HYDRAULIC TUBES & VALVES CO., UNIQUE HOUSE, 72/74, NAGDEVI STREET, GROUND FLOOR, MUMBAI-400003. VS. I.T.O.-17(1)(5), ROOM NO. 117, 1 ST FLOOR, AAYAKAR BHAVAN MUMBAI-400020. PAN/GIR NO.AACFH 7282 D (APPELLANT ) .. (RESPONDENT ) REVENUE BY SHRI R.K. GUBGOTRA (DR) ASSESSEE BY SHRI SAMIR SHAIKH (AR) DATE OF HEARING 03/02/2020 DATE OF PRONOUNCEMENT 04/02/2020 / O R D E R PER: R.C. SHARMA, A.M. THESE ARE THE CROSS APPEALS FILED BY THE ASSESSEE AND REVENUE AGAINST THE SEPARATE ORDERS OF THE LD. CIT(A)-56, M UMBAI DATED ITA NO. 537, 652 & 653/MUM/2019 ITO VS M/S HYDRAULIC TUBES & VALVES CO. 2 20/11/2018 AND 26/11/2018 FOR THE A.Y. 2009-10 AND 2010-11 RESPECTIVELY IN THE MATTER OF ORDER PASSED U/S 143( 3) R.W.S. 147 OF THE INCOME TAX ACT, 1961 (IN SHORT, THE ACT). 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PER USED. FACTS IN BRIEF ARE THAT THE ASSESSEE IS ENGAGED IN BUSINESS OF TRADING OF PIPES AND HARDWARE. THE ASSESSMENT WAS REOPENED ON THE BA SIS OF INFORMATION FROM THE SALES TAX DEPARTMENT, THEREAFT ER THE A.O. ADDED 12.5% OF THE ALLEGED BOGUS PURCHASES AS PROFIT IN T HE ASSESSEES INCOME. BY THE IMPUGNED ORDER, THE LD. CIT(A) AFTER GIVING DETAILED FINDING, RESTRICTED THE ADDITION TO THE EXTENT OF 8 .5%. IT WAS BROUGHT TO OUR NOTICE THAT THE BUSINESS OF THE ASSESSEE HAS BEEN CLOSED SINCE LAST 7-8 YEARS AND THE ASSESSEE IS CONFINED TO BED BECAUSE OF VARIOUS DISEASES. MEDICAL CERTIFICATES WERE ALSO PLACED ON RECORD. 3. FROM THE RECORD I FOUND THAT BEFORE THE A.O., TH E ASSESSEE HAS PRODUCED PURCHASES BILLS, DELIVERY CHALLAN, COPY OF BANK STATEMENT ETC. KEEPING IN VIEW THE GROSS PROFIT DECLARED BY THE AS SESSEE, FURTHER ADDITION AT 8.5% WILL BE EXCESSIVE, THEREFORE, KEEP ING IN VIEW THE ENTIRETY OF FACTS AND CIRCUMSTANCES OF THE CASE, WE DIRECT THE A.O. TO RESTRICT THE ADDITION TO THE EXTENT OF 6% IN BOTH T HE YEARS UNDER CONSIDERATION. I DIRECT ACCORDINGLY. ITA NO. 537, 652 & 653/MUM/2019 ITO VS M/S HYDRAULIC TUBES & VALVES CO. 3 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D AND APPEALS OF THE ASSESSEE ARE ALLOWED IN PART. ORDER PRONOUNCED IN THE OPEN COURT ON 04 TH FEBRUARY, 2020. SD/- (R.C.SHARMA) ACCOUNTANT MEMBER MUMBAI; DATED 04/02/2020 *RANJAN 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, MUMBAI 6. GUARD FILE. //TRUE COPY//