ITO ,WARD- 3(4), KALYAN V. SNEHAL RASIKLAL GANDHI , MUMBAI

ITA 6863/MUM/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1147 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 03-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R BHOOPATHI
• Assessee Lawyers: D C SABOO
• Keywords: Bogus purchase
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES SMC, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO. 6863/MUM/2018 ASSESSMENT YEAR : 2011-12 THE INCOME TAX OFFICER, WARD-3(4), KALYAN VS. SMT. SNEHAL RASIKLAL GANDHI, 10-B, 2 ND FLOOR, GAONDEVI PRASAD MANPADA ROAD, PANDURANG WADI, DOMBIVLI (E) [PAN : AILPG1478M] (APPELLANT) (RESPONDENT) RE VENUE BY : SHRI R.BHOOPATHI, DR ASSESSEE BY : SHRI D.C.SABOO, AR DATE OF HEARING : 1 6 - 12 - 201 9 DATE OF PRONOUNCEMENT : 17 - 12 - 201 9 O R D E R THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-1, THANE, DATED 24-09-2018 FOR THE AY.2011-12. 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM RECOR DS ARE: THE ASSESSEE IS ENGAGED IN THE BUSINESS OF DEAL ING IN NUT BOLT, BALL BERING HARDWARE TOOLS AND INSTRUMENTS ETC. O N THE BASIS OF THE INFORMATION RECEIVED FROM SALES TAX DEPA RTMENT, GOVERNMENT OF MAHARASHTRA, THE ASSESSMENT OF ASSESSEE FOR THE AY.2011-12 WAS RE-OPENED. IN RE-ASSESSMENT PROCEE DINGS, THE ASSESSING OFFICER (AO) HELD THAT THE ASSESSEE HAS INDULGED IN OBTAINING BOGUS PURCHASE BILLS FROM CERTAIN HAWALA DEALERS ITA NO. 6863/MUM/2018 : 2 : AGGREGATING TO RS.4,40,054/- AND THUS MADE AN ADDITION OF RS.4,40,054/-. AGGRIEVED AGAINST THE ASSESSMENT ORDER, THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). 3. THE CIT(A) VIDE IMPUGNED ORDER, RESTRICTED THE ADDI TION TO DIFFERENCE BETWEEN THE GP RATE DECLARED BY THE ASSE SSEE IN IMPUGNED ASSESSMENT YEAR AND THE HIGHEST GP RATE DEC LARED IN THE PROCEEDINGS THREE ASSESSMENT YEARS AND MADE ADD ITION OF RS.2,58,013/-. AGAINST THE ORDER OF CIT(A), THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. 4. SHRI R.BHOOPATHI, REPRESENTING THE DEPARTMENT, VEHEMENTLY DEFENDED THE ASSESSMENT ORDER. THE LD.DR SUBMITTED THAT THE ASSESSEE HAS FAILED TO SUBSTANTIATE GENUINENESS OF THE PURCHASES. THE ASSESSEE ALSO FAIL ED TO FURNISH COPIES OF TRANSPORT AND OCTROI BILLS, THUS, THE ASSESSEE COULD NOT ESTABLISH TRIAL OF GOODS ORIGINATING FROM SUP PLIERS TO THE GODOWN OF THE ASSESSEE. THE LD.DR PRAYED FOR MODI FYING THE ORDER OF CIT(A) AND CONFIRMING THE ENTIRE BOGUS P URCHASES AS ADDITION. 5. PER CONTRA, SHRI D.C.SABOO, APPEARING ON BEHALF O F THE ASSESSEE, VEHEMENTLY DEFENDED THE IMPUGNED ORDER AND PRAYED FOR DISMISSING THE APPEAL OF REVENUE. 6. THE SUBMISSIONS MADE BY RIVAL SIDES HEARD AND THE ORDERS OF THE AUTHORITIES BELOW PERUSED. THE SALES MAD E BY ITA NO. 6863/MUM/2018 : 3 : THE ASSESSEE HAVE NOT BEEN DISPUTED BY THE REVENUE. THEREFORE, THE ENTIRE ALLEGED BOGUS PURCHASE CANNOT BE ADDED BACK. WITHOUT PURCHASES, THERE CANNOT BE SALES. IN THE GIVEN FACTS OF THE CASE, IT APPEARS THAT THE ASSESSEE HAS MADE PURCHASES FROM GREY MARKET AND THEREAFTER, OBTAINED BILLS FROM ALLEGED HAWALA OPERATORS. THE FAA HAS RESTRICTED THE ADDITION TO THE DIFFERENCE BETWEEN GP RATIO DECLARED BY ASSESSEE IN THE IMPUGNED ASSESSMENT YEAR AND THE HIGH EST GP RATE IN THE PAST THREE ASSESSMENT YEARS. THE ASSESSE E HAS ACCEPTED THE SAME. THE ORDER OF THE FAA IS FAIR AND REASONABLE AND HENCE, NO INTERFERENCE IS WARRANTED. THE IMPUGNED ORDER IS UPHELD AND THE APPEAL OF REVENUE I S DISMISSED. 7. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON TUESDAY, THE 17 TH DAY OF DECEMBER, 2019 SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER /MUMBAI; /DATED : 17-12-2019 TNMM ITA NO. 6863/MUM/2018 : 4 : / COPY OF THE ORDER FORWARDED TO : 1. ! / THE APPELLANT 2. ' ! / THE RESPONDENT 3. # $ ( ) / THE CIT(A), MUMBAI 4. # $ / CIT, MUMBAI 5. '()*+ , #-*+#. , / DR, ITAT, MUMBAI 6. )/01 / GUARD FILE # / BY ORDER, ' //TRUE COPY// /# (DY./ASST. REGISTRAR) #-*+#., / ITAT, MUMBAI