RENIKA B SHAH, MUMBAI V. DCIT 29(3), MUMBAI

ITA 6661/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0902 (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: D C JAIN
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM ITA NO. 6661 / MUM/20 1 6 ( ASSESSMENT YEAR : 2009 - 10 ) SMT. RANUKA B. SHAH 75, BOMBAY MUTUAL BLDG., 293, DR. D.N. ROAD, FORT, MUMBAI 400 001 VS. DCIT 29 (3), MUMBAI P AN/GIR NO. ABNPS1662G APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI D.C. JAIN 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) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 40, MUMBAI DATED 19/08/2016 FOR THE A.Y.2009 - 10 IN THE MATTER OF ORDER PASSED U/S.143(3) R.W.S. 147 OF THE IT ACT. 2. IN THIS APPEAL, ASSESSEE IS AGGRIEVED FOR ADDITION MADE BY APPLYING 12.5% ON THE BOGUS PURCHASES MADE BY ASSESSEE DURING THE YEAR. 3. FACTS IN BRIEF ARE THAT THE ASSESSEE IS AN INDIVIDUAL, DERIVING INCOME FROM PROPRIETARY BUSINESS CARRIED ON UNDER THE NAME AND STYLE M/S. MUKTI GARME NTS ENGAGED IN THE BUSINESS OF TRADING IN GARMENTS, RETURN OF INCOME VOLUNTARILY FILED ON 23/09/2009 DECLARING TOTAL INCOME AT RS.7,56,870/ - . THE ASSESSMENT WAS REOPENED U/S.148 BASED ON THE INFORMATION RECEIVED FROM SALES TAX DEPARTMENT STATING THAT EXTEN SIVE INVESTIGATION ON THE VARIOUS VAT DODGERS, WHO WERE KNOW TO BE ISSUING ITA NO. 6661/MUM/2016 SMT. RENUKA B. SHAH 2 ACCOMMODATION BILLS, THE ASSESSEE IS BENEFICIARY WHO ALLEGEDLY BOOKED PURCHASES WORTH RS.1,47,44,517/ - THE ASSESSEE PRODUCED AND FILED THE DETAILS AND EXPLANATION IN RESPECT OF PURC HASES MADE. THE LEARNED ASSESSING OFFICER WITHOUT ACCEPTING THE DETAILS AND EXPLANATION OF THE ASSESSEE , MADE THE ADDITION OF RS. 1 8,43,065/ - TO THE INCOME, DETERMINED IN THE ORDER PASSED U/S.143(3) DATED 30/12/2011 . 4. BY THE IMPUGNED ORDER, CIT(A) RESTRIC T ED THE ADDITION TO 12.5% OF SUCH PURCHASES, AGAINST WHICH ASSESSEE IS IN FURTHER APPEAL BEFORE US. 5. I HAVE CONSIDERED RIVAL CONTENTIONS AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND FROM RECORD THAT ASSESSEE HAS DECLARED GP OF 12.19% DU RING THE YEAR UNDER CONSIDERATION, WHICH IS BETTER THAN GP RATE DECLARED BY ASSESSEE IN THE A.Y.2008 - 09 AT 11.19% WHICH WAS ALSO ACCEPTED BY THE DEPARTMENT IN THE SCRUTINY ASSESSMENT U/S.143(3) VIDE ORDER DATED 30/02/2011. 6. KEEPING IN VIEW THE TOTALITY O F FACTS AND CIRCUMSTANCES VIS - - VIS, GP ACCEPTED BY THE DEPARTMENT UNDER SCRUTINY ASSESSMENT, I DIRECT AO TO RESTRICT ADDITION TO THE EXTENT OF 5% OF SUCH BOGUS PURCHASES. I DIRECT ACCORDINGLY. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS 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. 6661/MUM/2016 SMT. RENUKA B. SHAH 3 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//