ITO ,WARD- 2 (3), THANE V. ASIFA IRFAN DHOLE, MUMBAI

ITA 6979/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9093 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 06-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R BHOOPATI
• Keywords: Bogus purchase
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO. 6979/MUM/2018(A.Y.2010-11) INCOME TAX OFFICER , WARD 2(3), 6 TH FLOOR, BWING, ROOM NO.13, ASHAR I.T. PARK, ROAD NO.16Z, NEAR AMBIKA NAGAR, WAGLE INDUSTRIAL ESTATE, THANE(W) 400 604 ... ... APPELLANT VS. ASIFA IRFAN DHOLE, H.NO.60, BD PATIL ROAD, OPP. JAMA MASJIT, MEERA RAOD (E), THANE 401 107 PAN: AGHPD 1752D ..... RESPONDENT APPELLANT BY : SHRI R. BHOOPATI RESPONDENT BY : NONE DATE OF HEARING : 18/12/2019 DATE OF PRONOUNCEMENT : 06/01/2020 ORDER THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)- 1 [IN SHOR T THE CIT(A) ], THANE DATED 24/09/2018 FOR THE ASSESSMENT YEAR 2010-11. 2. SHRI R. BHOOPATI REPRESENTING THE DEPARTMENT SUB MITTED THAT INFORMATION WAS RECEIVED FROM SALES TAX DEPARTMENT, MAHARASHTRA THAT THE ASSESSEE IN CONNIVANCE WITH HAWALA DEALERS HA S OBTAINED BOGUS PURCHASES BILLS. THE ASSESSMENT FOR ASSESSMENT YEA R 2010-11 WAS REOPENED. THE ASSESSING OFFICER VIDE ORDER DATED 1 7/03/2018 PASSED 2 ITA NO. 6979/MUM/2018(A.Y.2010-11) UNDER SECTION 143(3) R.W.S. 147 OF THE INCOME TAX A CT, 1961 (IN SHORT THE ACT), HELD THAT THE ASSESSEE HAS OBTAINED BOGUS PU RCHASES BILLS AGGREGATING TO RS.8,96,792/- FROM M/S. MONA ENTERPR ISES. CONSEQUENTLY, THE ASSESSING OFFICER MADE ADDITION OF THE AFORESAI D AMOUNT. IN FIRST APPELLATE PROCEEDINGS, THE CIT(A) RESTRICTED THE DI SALLOWANCE TO 25% OF THE BOGUS PURCHASES. THE LD. DEPARTMENTAL REPRESEN TATIVE SUBMITTED THAT THE ASSESSEE COULD NOT PROVE GENUINENESS OF THE PURCHASE TRANSACTIONS EITHER DURING ASSESSMENT PROCEEDINGS O RDER IN THE FIRST APPELLATE PROCEEDINGS. HENCE, THE ADDITION MADE BY ASSESSING OFFICER IS JUSTIFIED. THE LD. DEPARTMENTAL REPRESENTATIVE PRA YED FOR REVERSING THE FINDING OF CIT(A) AND UPHOLDING THE ASSESSMENT ORDE R. 3. I HAVE HEARD THE SUBMISSIONS MADE BY LD. DEPARTM ENTAL REPRESENTATIVE AND HAVE PERUSED THE ORDERS OF AUTHO RITIES BELOW. THE ASSESSING OFFICER MADE ADDITION OF RS.8,96,792/- ON ACCOUNT OF BOGUS PURCHASES. IT WAS ALLEGED THAT THE ASSESSEE HAS OB TAINED BOGUS PURCHASES BILLS FROM M/S MONA ENTERPRISES DURING THE PERIOD R ELEVANT TO THE ASSESSMENT YEAR UNDER APPEAL FOR AN AMOUNT OF RS.8 ,96,792/-. IT IS AN UNDISPUTED FACT THAT THE SALES MADE BY ASSESSEE H AVE NOT BEEN DISPUTED BY THE ASSESSING OFFICER. WITHOUT PURCHASES THERE CANNOT BE SALES. HENCE, THE ENTIRE ALLEGED BOGUS PURCHASES CANNOT BE ADDED BACK. THE CIT(A) IN FIRST APPELLATE PROCEEDINGS HAS RESTRICTE D THE ADDITION TO 25% OF ALLEGED BOGUS PURCHASES. THE SAME HAS BEEN ACCEPTE D BY ASSESSEE. TAKING INTO CONSIDERATION ENTIRETY OF FACTS AND THE MATERIAL AVAILABLE ON RECORD, I AM OF CONSIDERED VIEW THAT THE ORDER OF CIT(A) IS FAIR AND 3 ITA NO. 6979/MUM/2018(A.Y.2010-11) JUSTIFIED. HENCE, WARRANTS NO INTERFERENCE. THE S AME IS UPHELD AND THE APPEAL OF THE REVENUE IS DISMISSED BEING DEVOID OF MERIT. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY, THE 06 TH DAY OF JANUARY, 2020. SD/- (VIKAS AWASTHY) JUDICIAL MEMBER MUMBAI, DATED 06/01/2020 VM , SR. PS(O/S) COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI