ITO -WARD- 3 (4), KALYAN V. SATYANARAYANA C. JAKKUL, MUMBAI

ITA 6865/MUM/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1151 (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
• 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. A.Y. APPELLANT RESPONDENT 6864/MUM/18 2010-11 THE INCOME TAX OFFICER, WARD-3(4), KALYAN SATYANARAYANA C. JAKKUL, B/04-001, ASHA PARK, PANDURANGWADI, MANPADA ROAD, DOMBIVLI [PAN: ADMPJ5301L] 6865/MUM/18 2011-12 RE VENUE BY : SHRI R.BHOOPATHI, DR ASSESSEE BY : SHRI NIMESH CHOTHANI, AR DATE OF HEARING : 1 6 - 12 - 201 9 DATE OF PRONOUNCEMENT : 17 - 12 - 201 9 O R D E R THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAINS T THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)- 1, THANE, DATED 21-09-2018, COMMON FOR THE AYS.2010-11 & 2011-12. 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM RECOR DS ARE: THE ASSESSEE IS A TRADER IN IRON AND STEEL. ON TH E BASIS OF THE INFORMATION RECEIVED FROM SALES TAX DEPARTMENT, GOVERNMENT OF MAHARASHTRA, THE ASSESSMENTS OF ASSESSEE FOR THE AYS.2010-11 & 2011-12 WERE RE-OPENED. IN RE-ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER (AO) OBSERVED THAT THE ASSESSEE HAS INDULGED IN OBTAINING BO GUS PURCHASE BILLS FROM CERTAIN HAWALA DEALERS AND THUS M ADE ADDITION OF RS.7,55,588/- IN AY.2010-11 AND RS.19,79 ,437/- IN AY.2011-12. ITA NOS. 6864 & 6865/MUM/2018 : 2 : AGGRIEVED AGAINST THE ASSESSMENT ORDER FOR THE RESPECTIVE ASSESSMENT YEARS, THE ASSESSEE FILED APPEAL S BEFORE THE CIT(A). 3. THE CIT(A) VIDE IMPUGNED ORDER COMMON FOR BOTH TH E ASSESSMENT YEARS UNDER APPEAL, RESTRICTED THE ADDITION T O 25% OF THE ALLEGED BOGUS PURCHASES I.E., RS.1,88,897 /- IN AY.2010-11 AND RS.4,94,859/- IN AY.2011-12. AGAINST THE ORDER OF CIT(A), THE REVENUE IS IN APPEAL FOR BOTH THE ASSESSMENT YEARS. 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 NIMESH CHOTHANI, APPEARING ON BEH ALF OF THE ASSESSEE, VEHEMENTLY DEFENDED THE IMPUGNED ORDE R AND PRAYED FOR DISMISSING THE APPEALS OF REVENUE. DECISION OF TRIBUNAL : ITA NO.6864/MUM/2018 (AY.2010-11): 6. THE SUBMISSIONS MADE BY RIVAL SIDES HEARD AND THE ORDERS OF THE AUTHORITIES BELOW PERUSED. THE SALES MAD E BY ITA NOS. 6864 & 6865/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 EXTENT OF 25% OF THE BOGUS PURCHASES I.E ., RS.1,88,897/-. I AM OF CONSIDERED VIEW THAT THE ORDER OF CIT(A) IS FAIR AND REASONABLE, HENCE, NO INTERFERENC E IS WARRANTED. THE IMPUGNED ORDER IS UPHELD AND THE APPE AL BY REVENUE IS DISMISSED. ITA NO.6865/MUM/2018 (AY.2011-12): 7. THE FACTS IN AY.2011-12 ARE SIMILAR TO AY.2010-11. THE CIT(A) HAS RESTRICTED THE ADDITION TO 25% OF BOGUS PURC HASES I.E., RS.4,94,859/-. THE FINDINGS GIVEN WHILE ADJUD ICATING APPEAL FOR AY.2010-11 WOULD MUTATIS MUTANDIS APPLY TO AY.2011-12. HENCE, THIS APPEAL OF REVENUE IS ALSO D ISMISSED FOR SIMILAR REASONS. 8. IN THE RESULT, THE APPEALS OF REVENUE FOR BOTH THE ASSESSMENT YEARS ARE 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 NOS. 6864 & 6865/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