VISHAL RAM KHAKAL, THANE V. ASST CIT CIR 3, THANE

ITA 6562/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0943 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2017
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 09-11-2016
• Court: TRIBUNAL
• Department Lawyers: BEENA SANTOSH
• Assessee Lawyers: M SUBRAMANIAN
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM ITA NO. 65 62 / MUM/20 1 6 & ITA NO.6563/MUM/2016 ( ASSESSMENT YEAR : 2009 - 10 & 2010 - 11 ) VISHAL RAM KHAKAL, 303, MAHAVIR MILESTONE, OPP. VIKAS COMPLEX, KOLBAD, THANE 400 601 VS. ACIT CC, 3, THANE PAN/GIR NO. APIPK0822M APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI M. SUBRAMANIAN REVENUE BY MS. BEENA SANTOSH DATE OF HEARING 19 / 04 /201 7 DATE OF PRONOUNCEME NT 19 / 04 /201 7 / O R D E R PER R.C.SHARMA (A.M) : THESE ARE THE APPEALS FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 2, THANE DATED 29/08/2016, IN THE MATTER OF ORDER PASSED U/S.143(3) R.W.S.147 OF THE IT ACT. 2. GRIEVANCE OF ASSESSEE IN BOTH THE YEARS PERTA INS TO UPHOLDING DISALLOWANCE OF ALLEGED BOGUS PURCHASES. 3. I HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND THAT ON THE BASIS OF INFORMATION RECEIVED FROM SALES TAX DEPARTMENT THAT ASSESSEE HAD EFFECTED PURCHASES FROM VARIOUS PARTIES WHO HAVE BEEN DECLARED AS S USPICION . THE AO REOPENED THE ASSESSMENT AND ADDED THE ENTIRE AMOUNT OF SUCH PURCHASE S IN ASSESSEES INCOME. ITA NO. 6562/MUM/2016 & 6563/MUM/2016 VISHAL RAM KHAKAL 2 4. BY THE IMPUGNED ORDER, CIT(A) CONFIRMED THE ORDER OF THE AO AGAINST WHICH ASSESSEE IS IN FURTHER APPEAL BEFORE US. 5. I HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND THAT ASSESSEE IS A CIVIL CONTRACTOR MAINLY UNDERTAKING WORK RELATING TO SH ELTER SUPPLY PROJECTS, ROAD PROJECTS AND CIVIL INFRASTRUCTURE PROJECTS. IN THE A.Y. 2009 - 10, ASSESSEES PURCHASES OF RS.3,67,173/ - AND IN THE A.Y. 2010 - 11 RS. 13,65,410 WERE FOUND TO BE FROM BOGUS SUPPLIERS. DURING THE COURSE OF ASSESSMENT, ASSESSEE HAS FILED LEDGER COPIES AND BILLS OF ALL THESE SUPPLIERS. PAYMENT WAS PAID TO THESE SUPPLIERS BY ACCOUNT PAYEE CHEQUE. MAT ERIAL SO PURCHASED WAS EXTENSIVELY USED BY ASSESSEE IN HIS CIVIL WORK CONTRACTS . S INCE THE ASSESSEE UNDERTAKES GOVERNMENT CIVIL ACTIVITIES , THE MATERIALS RECEIVED AT SITE WAS INSPECTED BY GOVERNMENT AGENCIES, WHO ARE STATIONED AT SITE AND THEN ONLY USED IN THE CONSTRUCTION ACTIVITIES. IT IS ONLY AFTER USING SUCH MATERIAL ON THE WORK CONTRACT ACTIVITIES, THAT THE SALES BILLS WAS TO BE MADE BY THE ASSESSEE. THE SALES SO MADE HAS BEEN ACCEPTED BY THE AO. UNDER THESE FACTS AND CIRCUMSTANCES, THERE IS NO JUSTIFI CATION FOR ADDING THE ENTIRE AMOUNT OF PURCHASES IN ASSESSEES INCOME. 6. KEEPING IN VIEW THE FACTS AND CIRCUMSTANCES OF THE CASE VIS - A - VIS NATURE OF ASSESSEES BUSINESS, PROFIT RATE DECLARED IN EARLIER YEARS AND THE JUDICIAL PRONOUNCEMENTS OF TRIBUNAL IN SIMILAR CASES , I RESTRICT THE ADDITION TO THE EXTENT OF 12.5%. ITA NO. 6562/MUM/2016 & 6563/MUM/2016 VISHAL RAM KHAKAL 3 7. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED IN PART. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 19 / 04 /2017 S D/ - ( R.C.SHARMA ) ACCOUNTANT MEMBER MUMBAI ; DATED 2 1 / 04 /201 7 KARUNA SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) IT AT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY //