ITO 17 (1)(2), MUMBAI V. BHAVESH N. SHAH, MUMBAI

ITA 6905/MUM/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0914 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 04-12-2018
• 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. 6905/MUM/2018 ASSESSMENT YEAR : 2009-10 THE INCOME TAX OFFICER, -17(1)(2), MUMBAI VS. SHRI BHAVESH N.SHAH, B-11, SUPRABHAT APARTMENTS OFF. S.K.BOLE, DADAR, MUMBAI [PAN : AADPS2156G] (APPELLANT) (RESPONDENT) REVENUE BY : SHRI R.BHOOPATHI, DR ASSESSEE BY : NONE DATE OF HEARING : 1 7 - 12 - 201 9 DATE OF PRONOUNCEMENT : 20 - 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)-55, MUMBA I, DATED 28-09-2018, FOR THE AY.2009-10. 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM RECOR DS ARE: THE ASSESSEE, AN INDIVIDUAL, IS ENGAGED IN THE BUSINESS OF TRADING IN IRON & STEEL. ON THE BASIS OF THE INFORMATIO N RECEIVED FROM DGIT (INV.), MUMBAI, THE ASSESSMENT OF ASSESSEE FOR THE AY.2009-10 WAS RE-OPENED. IN THE RE-ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER (AO) HELD THAT THE ASSESSEE HAS INDULGED IN OBTAINING BOGUS PURCH ASE BILLS FROM THE FOLLOWING HAWALA DEALERS, AGGREGATING TO RS.1,44,41,696/- : ITA NO. 6905/MUM/2018 : 2 : S.NO NAME OF THE PARTY BILL AMOUNT RS. 1 DHRUV SALES CORPORATION 17,48,727 2 NAMAN ENTERPRISES 12,72,754 3 C.K.ENTERPRISES 14,31,669 4 NAVDEEP TRADING CORPN., 9,21,431 5 D.K.ENTERPRISE 26,80,351 6 GRIFTON INDIA RIDDHI ENTERPRISE 42,61,643 7 SIDDHI ENTERPRISES 21,25,121 TOTAL RS. 1,44,41,696 THE AO VIDE ORDER DT.09-02-2015 PASSED U/S.143(3) R. W.S.147 OF THE INCOME TAX ACT, 1961 (HEREIN AFTER REFERRED TO AS THE ACT) MADE AN ADDITION OF RS.18,05,212/- BY ESTIMATING GROSS PROFIT (GP) @12.5% ON NON-GENUINE PURCHASES. AGGRIEVED AGAINST THE ASSESSMENT ORDER, THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). 3. THE CIT(A) VIDE IMPUGNED ORDER, PARTLY ALLOWED THE APPEAL OF ASSESSEE, RESTRICTING THE ADDITION TO THE EXT ENT OF 8% OF THE ALLEGED BOGUS PURCHASES. AGAINST THE ORDER OF FIRST APPELLATE AUTHORITY (FAA), 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 COULD NOT ESTABLISH TRIAL OF GOODS ORIGINATING FROM SUPPLIERS TO THE GODOWN OF THE ASSESSEE. THE LD.DR PRAYED FOR MODIFYI NG THE ORDER OF CIT(A) AND CONFIRMING THE ADDITION MADE BY AO. 5. NONE APPEARED ON BEHALF OF THE ASSESSEE. ITA NO. 6905/MUM/2018 : 3 : 6. THE SUBMISSIONS MADE BY LD.DR HEARD AND THE MATER IAL AVAILABLE ON RECORD PERUSED. AFTER TAKING INTO CON SIDERATION ENTIRE FACTS AND MATERIAL AVAILABLE ON RECORD, I AM O F CONSIDERED VIEW THAT THE ORDER OF CIT(A) IS FAIR AND R EASONABLE AND HENCE, WARRANTS NO INTERFERENCE. ESTIMATION OF GP @ 8% OVER AND ABOVE THE GP DECLARED BY ASSESSEE ON ALLEGE D BOGUS PURCHASES IS JUSTIFIED. THE IMPUGNED ORDER IS UPHE LD AND THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON FRIDAY THE 20 TH DAY OF DECEMBER, 2019 SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER /MUMBAI; /DATED : 20-12-2019 TNMM / 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 ITA NO. 6905/MUM/2018 : 4 : # / BY ORDER, ' //TRUE COPY// /# (DY./ASST. REGISTRAR) #-*+#., / ITAT, MUMBAI