ITO 19 (3)(3), MUMBAI V. SHRENIK CHAMPALAL JAIN, MUMBAI

ITA 6909/MUM/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0929 (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: 2010-2011
• 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. A.Y. APPELLANT RESPONDENT 6909/MUM/18 2010-11 THE INCOME TAX OFFICER, -19(3)(3), MUMBAI SHRI SHRENIK CHAMPALAL JAIN, 50, 1 ST CARPENTER STREET, 3 RD FLOOR, MUMBAI [PAN: AAIPJ6480F] 6910/MUM/18 2011-12 RE VENUE 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 THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAINS T THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)- 30, MUMBAI, DATED 28-09-2018, COMMON FOR THE AYS.2010-11 & 2011-12. 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM RECOR DS ARE: THE ASSESSEE IS AN INDIVIDUAL, ENGAGED IN TRADI NG OF FERROUS AND NON-FERROUS METALS. ON THE BASIS OF INFOR MATION RECEIVED FROM THE DGIT (INV), MUMBAI, THE ASSESSMENTS OF ASSESSEE FOR THE AYS.2010-11 & 2011-12 WERE RE-OPENE D. IN THE 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, MADE ADDITION OF RS.20,75,932/- IN AY.2010-11 AND RS.40,4 5,421/- IN AY.2011-12 I.E., @12.5% OF THE ALLEGED BOGUS PURC HASES IN RESPECTIVE ASSESSMENT YEARS. ITA NOS. 6909 & 6910/MUM/2018 : 2 : AGGRIEVED AGAINST THE ASSESSMENT ORDERS 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 IMPUGNED ASSESSMENT YEARS, RESTRICTED THE ADDITION TO 4 % OF THE ALLEGED BOGUS PURCHASES. AGAINST THE ORDER OF CIT(A), THE REVENUE IS IN APPEAL FOR BOTH THE ASSESSMENT YEARS I.E., AYS.2010-11 & 2011-12 . THE ASSESSEE HAS ACCEPTED THE ADDITIONS CONFIRMED BY THE FI RST APPELLATE AUTHORITY (FAA). 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 DELIVERY CHALLANS, TRANSPORT, OCTRO I BILLS ETC., THUS, THE ASSESSEE COULD NOT ESTABLISH TRIAL OF GOODS ORIGINATING FROM SUPPLIERS TO THE GODOWN OF THE ASSES SEE. THE LD.DR PRAYED FOR MODIFYING THE ORDER OF CIT(A) AND CONFIRMING THE ADDITION MADE BY AO. 5. NONE APPEARED ON BEHALF OF THE ASSESSEE. FINDINGS OF TRIBUNAL: ITA NO.6909/MUM/2018 (AY.2010-11): 6. THE SUBMISSIONS MADE BY LD.DR HEARD AND THE ORDER S OF THE AUTHORITIES BELOW PERUSED. THE AO ESTIMATED GROSS PR OFIT (GP) @12.5% ON THE ALLEGED BOGUS PURCHASES. THE FA A HAS RESTRICTED THE ADDITION TO THE EXTENT OF 4% OF THE BOGUS ITA NOS. 6909 & 6910/MUM/2018 : 3 : PURCHASES. AFTER TAKING INTO CONSIDERATION ENTIRE FACTS AND THE DOCUMENTS ON RECORD, I AM OF CONSIDERED VIEW THAT THE O RDER OF CIT(A) IS FAIR AND REASONABLE, HENCE NO INTERFERE NCE IS WARRANTED. THE IMPUGNED ORDER IS UPHELD AND THE APPEA L OF REVENUE IS DISMISSED. ITA NO.6910/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 4% OF THE BOGUS PURCHASES ON SIMILAR LINES. THE SAME HAS BEEN ACCEP TED BY THE ASSESSEE. THE FINDINGS GIVEN FOR REJECTING DEPART MENTS APPEAL FOR AY.2010-11 WOULD MUTATIS MUTANDIS APPLY TO ASSESSMENT YEAR UNDER APPEAL. ACCORDINGLY, THIS APP EAL OF REVENUE IS ALSO DISMISSED. 8. IN THE RESULT, THE APPEALS OF REVENUE FOR BOTH THE IMPUGNED ASSESSMENT YEARS ARE 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 ITA NOS. 6909 & 6910/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