SHREE GURUDEV TRADERS, BOISAR V. ITO WD 4 PALGHAR, PALGHAR

ITA 6622/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0899 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2017
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 11-11-2016
• Court: TRIBUNAL
• Department Lawyers: BEENA SANTOSH
• Assessee Lawyers: VIRAG SHAH
• Keywords: Bogus purchase; Accommodation entries

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM ITA NO. 6622 / MUM/20 1 6 TO 6624/MUM/2016 ( ASSESSMENT YEAR : 200910 TO 2011 - 12 ) SHREE GURUDEV TRADERS SHOP NO. C - 1, MAHENDRA PARK, PALGHAR ROAD BOISAR 401501 VS. ITO WD 4 PALGHAR PAN/GIR NO. AAXFS8270M APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI VIRAG SHAH REVENUE BY MS. BEENA SANTOSH DATE OF HEARING 20 / 04 /201 7 DATE OF PRONOUNCEME NT 26 / 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) 3, THANE DATED 01/07/2016 FOR THE A.Y. 2009 - 10 TO 2011 - 12 IN THE MATTER OF ORDER PASSED U/S.143(3) OF THE IT ACT. 2. IN ALL THESE APPEALS A SSESSEE IS AGGRIEVED FOR ADDITION MADE ON ACCOUNT OF BOGUS PURCHASES. IN THE ASSESSMENT ORDER AO HAS OBSERVED THAT INFORMATION WAS RECEIVED FROM HIGHER AUTHORITIES GIVING DETAILS OF CERTAIN PERSONS WHO HAVE PROVIDED ACCOMMODATION ENTRIES T O A LARGE NUMBER O F BENEFICIARIES FOR BOG US PURCHASE BILLS. THE NAME OF ASSESSEE SMT. SUBHADRA CHANDRABHAN SHUKLA , PROP SHREE GURUDEV TRADERS ALSO APPEARS IN THE LIST OF B ENEFICIARIES WHO HAVE OBTAINED BOGUS PURCHASE BILLS FROM THE ENTRY P ROVIDERS. ITA NO. 6622/MUM/2016 TO 6624/MUM/2016 SHREE GURUDEV TRADERS 2 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE A.R. OF THE ASSESSEE VIDE HIS SUBMISSION DATED 16/04/201 4 FILED FOLLOWING DETAILS. '1. THE ZEROX COPY PURCHASE BILL ALONGWITH THE RECEIPTS OF TRANSPORT (L.R.) RECEIPTS A RE ENCLOSIN G FOR YOUR RECORD. I AM ALSO REQUEST YOU TO CALLED THE PARTY OF M/S. D.N.ENTERPRISES, M/S. RELIANCE ENTERPRISES, M/S. RAJ TOOL CORPORATION ARID M/S. SHIV INDUSTRIES FOR THE CROSS EXAMINATION VERIFICATION OF TRUTH. I WILL NOT CONSIDER AFFIDAVIT MADE BY THE ABOVE PARTY. FURTHER I REQUIRED AFFIDAVIT CO PY OF ABOVE PARTY. 2. I AM ALSO ENCLOSING XEROX COPY OF THE DECISION GUJRAT HIGH COURT CIT V/SO SIMITH P. SETH (2013 ) 356 ITR 451 (GUJRAT) & ICT V/S. BHOLENATH POLYFAB PVT. LTD. (2013) 355 ITR 290 (GUJRAT) FOR YOUR RECORD.' 4. HOWEVER, AO DID NOT AGREE WITH ASSESSEES CONTENTION AND ADDED ENTIRE PURCHASES IN ASSESSEES INCOME. 5. BY THE IMPUGNED ORDER, CIT(A) CONFIRMED THE SAME. ASSESSEE IS IN FURTHER APPEAL BEFORE US. 6 . I HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND DELIBERATED ON THE J UDICIAL PRONOUNCEMENTS CITED AT BAR. FROM THE RECORD I FOUND THAT ON THE BASIS OF INFORMATION FROM SALES TAX DEPARTMENT, AO STATED THAT ASSESSEE MADE PURCHASES OF RS.1,22,233/ - DURING THE A.Y. 2009 - 10 FROM SUCH PARTY. TO PROVE ITS PURCHASES, ASSESSEE HAS F URNISHED BANK STATEMENT OF PARTYS ACCOUNT , PAYMENT MODE , LEDGER ACCOUNT, COPIES OF BILLS. THE ASSESSEE HAS ALSO FILED TRANSPORTATION BILL, COMPLETE NAME AND ADDRESS OF THE TRANSPORTERS WITH XEROX COPY OF LR, PAYMENT OF VAT , CHALLANS ETC., ITA NO. 6622/MUM/2016 TO 6624/MUM/2016 SHREE GURUDEV TRADERS 3 6. I FOUND THAT LOOKING TO THE NATURE OF BUSINESS I.E., RETAIL SELLING OF HARDWARE, PAINTS AND ELECTRICAL ETC., ASSESSEE HAS SHOWN REASONABLE GP IN TERMS OF TURN OVER DURING THE YEAR. SALES SO MADE BY THE ASSESSEE HAS BEEN ACCEPTED BY THE AO. WITHOUT PURCHASE THERE CANNO T BE SALE, THEREFORE, AOS ASSUMPTION THAT ASSESSEE HAS NOT PURCHASED ANY GOODS IS NOT CORRECT. THEREFORE, AO WAS NOT JUSTIFIED IN MAKING ADDITION OF ENTIRE AMOUNT OF PURCHASES . 7. KEEPING IN VIEW TOTALITY OF FACTS AND CIRCUMSTANCES OF THE CASE VIS - - VIS NATURE OF ASSESSEES BUSINESS AND GP RATE SHOWN IN EARLIER ORDER, I DIRECT THE AO TO RESTRICT THE ADDITION TO THE EXTENT OF 1 0 % OF SUCH BOGUS PURCHASES. I DIRECT ACCORDINGLY. 8. FACTS AND CIRCUMSTANCES IN THE A.Y. 2010 - 11 AND 2011 - 12 ARE SAME, I DIRECT TH E AO TO RESTRICT THE ADDITION TO THE EXTENT OF 10 % OF SUCH PURCHASES. 9. IN THE RESULT, APPEALS OF THE ASSESSEE ARE ALLOWED IN PART. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 26 / 04 /2017 S D/ - ( R.C.SHARMA ) ACCOUNTANT MEMBER MUMBAI ; DATED 26 / 04 /201 7 KARUNA SR. PS ITA NO. 6622/MUM/2016 TO 6624/MUM/2016 SHREE GURUDEV TRADERS 4 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//