ITO WARD 19(3)(5), MUMBAI V. M/S.VALSONS METAL, MUMBAI

ITA 6591/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4542 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 20-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KUMAR PADMAPANI BORA
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI R.C.SHARMA, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO.6591/MUM/2018(A.Y.2010-11) ITA NO.6592/MUM/2018(A.Y.2011-12) INCOME TAX OFFICER -19(3)(2) MATRU MANDIR,TARDEO ROAD, MUMBAI 400 007 ... ... APPELLANT VS. VALSONS METAL, 1-19,BHARAJA BHAVAN, 110-GULALWADI, MUMBAI 400 004 PAN: AAAFV3006B ..... RE SPONDENT APPELLANT BY : SHRI KUMAR PADMAPANI BORA RESPONDENT BY : SHRI VIMAL PUNMIY A DATE OF HEARING : 09/12/2019 DATE OF PRONOUNCEMENT : 11/02/2020 ORDER PER VIKAS AWASTHY, JM: THESE TWO APPEALS BY THE REVENUE FOR ASSESSMENT YE ARS 2010-11 AND 2011-12 ARE DIRECTED AGAINST THE ORDER OF COMMISSIO NER OF INCOME TAX(APPEALS)-29, MUMBAI ( IN SHORT THE CIT(A) ) FO R THE RESPECTIVE ASSESSMENT YEARS. BOTH THE IMPUGNED ORDERS ARE OF EVEN DATE I .E. 01/08/2018. SINCE THE ISSUES INVOLVED IN BOTH APPEALS ARE IDENTICAL, THES E APPEALS ARE ARE TAKEN UP TOGETHER FOR ADJUDICATION AND ARE DISPOSED OF BY TH IS COMMON ORDER. 2 ITA NO.6591/MUM/2018(A.Y.2010-11) ITA NO.6592/MUM/2018(A.Y.2011-12) 2. SHRI VIMAL PUNMIYA, APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED AT T HE OUTSET THAT THE CROSS APPEALS OF THE ASSESSEE I.E.I TA NO.5831/MUM/2018 FOR ASSESSMENT YEAR 2010-11 AND ITA NO.5832/MUM/2018 FOR ASSESSMENT YEAR 2011-12 ON THE ISSUE OF BOGUS PURCHASES HAVE BEEN A DJUDICATED BY CO- ORDINATE BENCH OF THE TRIBUNAL VIDE ORDER DATED 30/ 10/2019. THE TRIBUNAL HAS MODIFIED THE ORDER OF CIT(A) BY RESTRICTING THE ADD ITION TO 6.5% OF THE TOTAL BOGUS PURCHASES DETERMINED BY THE ASSESSING OFFICER . IN THE PRESENT SET OF APPEALS THE REVENUE HAS ASSAILED THE FINDINGS OF CI T(A) IN RESTRICTING DISALLOWANCE ON ALLEGED BOGUS PURCHASES @ 12.5%. TH US, IN THE LIGHT OF DECISION OF TRIBUNAL IN THE APPEALS BY THE ASSESS EE FOR THE SAME ASSESSMENT YEARS, THE APPEALS OF THE REVENUE ARE LIABLE TO BE DISMISSED. 3. SHRI KUMAR PADMAPANI BORA, REPRESENTING THE DEPARTMENT FAIRLY ADMITTED THAT THE CROSS APPEALS BY THE ASSESSEE FOR ASSESSME NT YEAR 2010-11 AND 2011- 12 HAVE BEEN ADJUDICATED BY THE TRIBUNAL INDEPENDEN TLY. 4. WE HAVE HEARD THE SUBMISSIONS MADE BY RIVAL SIDE S AND HAVE PERUSED THE ORDERS OF AUTHORITIES BELOW. IN ASSESSMENT PRO CEEDINGS, THE ASSESSING OFFICER HAD MADE DISALLOWANCE OF BOGUS PURCHASES @2 5%. IN FIRST APPEAL, THE CIT(A) RESTRICTED THE DISALLOWANCE TO 12.5%. THE T RIBUNAL IN APPEAL BY THE ASSESSEE GRANTED FURTHER RELIEF BY RESTRICTING DI SALLOWANCE TO 6.5% OF THE TOTAL BOGUS PURCHASES. THE REVENUE IN THE PRESENT SET OF APPEALS HAS ASSAILED THE FINDINGS OF CIT(A) IN GRANTING RELIEF TO THE ASSESS EE. SINCE, THE CO-ORDINATE BENCH OF THE TRIBUNAL HAS ALREADY ADJUDICATED THIS ISSUE BY GRANTING FURTHER 3 ITA NO.6591/MUM/2018(A.Y.2010-11) ITA NO.6592/MUM/2018(A.Y.2011-12) RELIEF TO THE ASSESSEE , THE PRESENT APPEALS BY THE REVENUE ARE LIABLE TO BE DISMISSED. WE HOLD AND DIRECT ACCORDINGLY. 5. IN THE RESULT, BOTH THESE APPEALS BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON TUESDAY, THE 11 TH DAY OF FEBRUARY, 2020. SD/- SD/- (R.C.SHARMA) (VIKAS AWASTHY) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED 11/02/2020 VM , SR. PS(O/S) COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI