PREMIER REFRIGERATION LTD, THANE V. ITO 13(1)(4), MUMBAI

ITA 6796/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1151 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2017
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 18-11-2016
• Court: TRIBUNAL
• Department Lawyers: BEENA SANTOSH
• Assessee Lawyers: PRAKASH AGARWAL
• Keywords: Bogus purchase
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM ITA NO. 6 7 96 / MUM/20 1 6 ( ASSESSMENT YEAR : 2009 - 10 ) PREMIER REFRIGERATION LTD., 111, MAHESH INDUSTRIAL ESTATE, MIRA BHAYANDER ROAD, MIRA ROAD EAST, THANE 401 107 VS. ITO 13 (1)(4), MUMBAI 400 021 PAN/GIR NO. AAACP6094L APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI PRAKASH AGARWAL REVENUE BY MS. BEENA SANTOSH DATE OF HEARING 27 / 04 /201 7 DATE OF PRONOUNCEME NT 27 / 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) - 21, MUMBAI DATED 13/09/2016 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. THE ONLY GRIEVANCE OF ASSE SSEE RELATES TO ADDITION OF RS.2,29,008/ - ON ACCOUNT OF BOGUS PURCHASES. I HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND THAT AO HAS MADE ADDITION ON ACCOUNT OF PURCHASES BY OBSERVING THAT AS PER INFORMATION FROM SALES TAX DEPARTMENT, THE SUPPLIERS WERE HAWA LA DEALERS AND NOT ACTUALLY DEALING IN THE GOODS. ACCORDINGLY AO MADE AN ADDITION OF RS.2,29,008/ - ON ACCOUNT OF SUCH PURCHASES. 3. BY THE IMPUGNED ORDER, CIT(A) CONFIRMED THE ACTION OF THE AO. ITA NO. 6796/MUM/2016 PREMIER REFRIGERATION LIMITED 2 4. I HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND FROM RECORD THAT ASSESSEE HAS LINKED ENTIRE PURCHASES WITH THE SALES. THE SALES ACCOUNTED BY ASSESSEE WAS NOT DISBELIEVED BY THE AO NOR BOOKS OF ACCOUNTS WAS REJECTED. UNDER THESE CIRCUMSTANCES, IT IS NOT CORRECT TO ADD ENTIRE PURCHASES IN ASSESSEES INCOME. KEEPING IN VIEW THE TOTALITY OF FACTS AND CIRCUMSTANCES OF THE CASE VIS - - VIS, JUDICIAL PRONOUNCEMENTS CITED BY LEARNED AR I AM INCLINED TO RESTRICT ADDITION TO THE EXTENT OF 12.5% OF SUCH BOGUS PURCHASES. 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PAR T. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 27 / 04 /2017 S D/ - ( R.C.SHARMA ) ACCOUNTANT MEMBER MUMBAI ; DATED 27 / 04 /201 7 KARUNA SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELL ANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//