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

ITA 6564/MUM/2016

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9831 (ITAT-MUMBAI)
• Duration Of Justice: 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 09-11-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUMAN KUMAR LD
• Assessee Lawyers: M SUBRAMANIAN LD
• Keywords: Bogus purchase; Reassessment proceedings
• Section: 133(6); 147; 148

Judgement Text

ITA NO 6564/MUM/2016 VISHAL RAM KHAKAL ASSESSMENT YEAR 2011-12 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI . . , , BEFORE SHRI D.T. GARASIA, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO. 6564/MUM/2016 ( / ASSESSMENT YEAR: 2011-12) VISHAL RAM KHAKAL 303 MAHAVIR MILESTONE OPP. VIKAS COMPLEX KOLBAD, THANE 400 601 / VS. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 3,ASHAR IT PARK WAGLE INDUSTRIAL ESTATE THANE -400 604 ! ./ ./PAN/GIR NO. APIPK-0822-M ( !# /APPELLANT ) : ( $%!# / RESPONDENT ) ASSESSEE BY : M. SUBRAMANIAN, LD. AR REVENUE BY : SUMAN KUMAR, LD. DR / DATE OF HEARING : 16/08/2017 / DATE OF PRONOUNCEMENT : 23/08/2017 ITA NO 6564/MUM/2016 VISHAL RAM KHAKAL ASSESSMENT YEAR 2011-12 2 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE CAPTIONED APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2011-12 ASSAILS THE ORDER OF LD. COMMISSIONER OF IN COME TAX (APPEALS)-2 [CIT(A)], THANE DATED 29/08/2016 QUA CONFIRMATION OF CERTAIN ADDITIONS AGAINST BOGUS PURCHASES. 2.1 BRIEFLY STATED, THE ASSESSEE BEING RESIDENT INDIVIDUAL ENGAGED AS CIVIL & LABOR CONTRACTOR WAS SUBJECTED TO AN ASSESSMENT U/S 147 READ WITH SECTION 147 FOR IMPUGNED AY ON 20/03/2015 WHERE THE INCOME OF THE ASSESSEE WAS DETERMINED AT RS.57,14,200/- AFTER ADDITION OF RS.30,00,019/- ON ACCOUNT OF CERTAIN BOGUS PURCHASES. THE ORIGINAL RETURN OF INCOME WAS FILED BY THE ASSESSEE ON 24/09 /2011 DECLARING TOTAL INCOME OF RS.27,14,180/- WHICH WAS PROCESSED U/S 14 3(1). 2.2 THE REASSESSMENT PROCEEDINGS WERE INITIATED UPO N RECEIPT OF CERTAIN INFORMATION FROM SALES TAX DEPARTMENT, MAHARASHTRA REGARDING DEALERS INDULGING IN BOGUS PURCHASES BILLS AND IT WAS NOTED THAT THE ASSESSEE STOOD BENEFICIARY OF SUCH BOGUS PURCHASE BILLS TO THE TUNE OF RS.30,00,019/- FROM 4 PARTIES. CONSEQUENTLY, NOTICE U/S 148 WAS ISSUED WHICH WAS FOLLOWED BY STATUTORY NOTICES U/S 142(1)/ 143(2). 2.3 TO CONFIRM THE PURCHASE TRANSACTIONS, NOTICES U /S 133(6) WERE ISSUED TO THE ALLEGED BOGUS SUPPLIERS, HOWEVER, THE SAME WERE RETURNED BACK UN-SERVED AND PHYSICAL VERIFICATION BY INSPECTOR AT THE GIVEN ADDRESSES REVEALED THAT NONE OF THE PARTY WAS AVAIL ABLE AT THE GIVEN ITA NO 6564/MUM/2016 VISHAL RAM KHAKAL ASSESSMENT YEAR 2011-12 3 ADDRESS WHICH LED THE LD. AO TO TREAT THESE PURCHAS ES AS NON-GENUINE AND ACCORDINGLY, ASSESSMENT WAS COMPLETED AFTER DIS ALLOWING THE SAME. 3. AGGRIEVED, THE ASSESSEE CONTESTED THE SAME WITH PARTIAL SUCCESS BEFORE LD. CIT(A) VIDE IMPUGNED ORDER DATED 29/08/2 016 WHO CONFIRMED THE ADDITION TO THE EXTENT OF RS.19,78,877/-, BEING ESTIMATED SUPPRESSED GP . AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFO RE US. 4. THE LD. REPRESENTATIVE FOR ASSESSEE [AR] DREW OU R ATTENTION TO THE FACT THAT THE ASSESSEE SUFFERED SIMILAR ADDITIONS I N AY 2009-10 & 2010- 11 WHICH WAS CONTESTED UP-TO THE LEVEL OF THIS TRIB UNAL VIDE ITA NO. 6562-63/MUM/2016 ORDER DATED 19/04/2017 WHERE THE A DDITION HAS FURTHER BEEN RESTRICTED TO 12.5% AND THEREFORE, THE SAME VIEW MAY BE TAKEN IN THE PRESENT CASE. THE LD. DR FAIRLY CONCED ED THE SAME. THE COPY OF TRIBUNALS ORDER HAS BEEN PLACED BEFORE US. 5. HEARD AND PERUSED THE CITED ORDER OF THE TRIBUNA L IN ASSESSEES OWN CASE. WE FIND THAT THE IMPUGNED ORDER IS COMMON ORDER FOR AY 2009-10, 2010-11 & 2011-12. IN THE PRECEDING TWO YE ARS, THE TRIBUNAL HAS RESTRICTED THE ADDITIONS TO 12.5%. THERE BEING NO CHANGE IN FACTS OR CIRCUMSTANCES, TAKING THE SAME STAND, WE RESTRICT T HE ADDITIONS TO 12.5% OF ALLEGED BOGUS PURCHASES WHICH COMES TO RS.3,75,003/-. 6. RESULTANTLY, THE ASSESSEES APPEAL STANDS PARTL Y ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD AUGUST, 2017. SD/- SD/- (D.T. GARASIA) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 23. 08.2017 SR.PS:- THIRUMALESH ITA NO 6564/MUM/2016 VISHAL RAM KHAKAL ASSESSMENT YEAR 2011-12 4 ! / COPY OF THE ORDER FORWARDED TO : 1. !# / THE APPELLANT 2. $%!# / THE RESPONDENT 3. , ( ) / THE CIT(A) 4. , / CIT CONCERNED 5. $'. , . , / DR, ITAT, MUMBAI 6. / / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI