ITO -WARD - 3(5), KALYAN V. RAJ CERAMICS, MUMBAI

ITA 6980/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9087 (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; Reassessment proceedings

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO. 6980/MUM/2018(A.Y.2010-11) INCOME TAX OFFICER , WARD 3(5) 2 ND FLOOR, RANI MANSION, MURBAD ROAD, KALYAN (WEST) 421 301 ...... APPEL LANT VS. M/S. RAJ CERAMICS, C/O. ADVOCATE N.A.KULKARNI, WADAL BUILDING, 1 ST FLOOR, NEAR DNS BANK, MANPADA ROAD, DOMBIVALI (EAST). PAN: AAIFR 4548Q ..... RESPONDENT APPELLANT BY : SHRI R. BHOOPATI RESPONDENT BY : SHRI NEERAJ KUMAR DATE OF HEARING : 18/12/2019 DATE OF PRONOUNCEMENT : 06/01/2020 ORDER THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST ORD ER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1, (IN SHORT THE CIT(A) ), THANE, DATED 27/09/2018 FOR THE ASSESSMENT YEAR 2010-11. 2. SHRI R. BHOOPATI REPRESENTING THE DEPARTMENT SUBMITTED THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURIN G OF P P CAPS AND LABELS. INFORMATION WAS RECEIVED FROM SALES TAX DE PARTMENT, MAHARASHTRA/DGIT(INV) WING THAT THE ASSESSEE HAS IN DULGED IN PROCURING BOGUS PURCHASES BILLS FROM VARIOUS HAWALA DEALERS I N THE PERIOD RELEVANT 2 ITA NO. 6980/MUM/2018(A.Y.2010-11) TO IN ASSESSMENT YEAR 2010-11. THE ASSESSEE HAS OB TAINED BOGUS PURCHASES BILLS TO THE TUNE OF RS.7,44,688/- FROM T WO PARTIES, NAMELY M/S.UNIVERSAL TRADING CO. RS.7,40,010/- & M/S. SHRE E ENTERPRISES RS.4,658/-. ON THE BASIS OF THE AFORESAID INFORMA TION, ASSESSMENT FOR ASSESSMENT YEAR 2010-11 WAS REOPENED. THE ASSESSI NG OFFICER IN REASSESSMENT PROCEEDINGS DISALLOWED RS.7,44,688/-. THE ASSESSEE THEREAFTER CARRIED THE MATTER IN APPEAL BEFORE CIT( A). THE CIT(A) VIDE IMPUGNED ORDER RESTRICTED THE ADDITION TO 25% OF TH E HAWALA PURCHASES I.E.1,86,172/-. THE LD. DEPARTMENTAL REPRESENTATIVE VEHEMENTLY SUPPORTED THE ASSESSMENT ORDER AND PRAYED FOR REVER SING THE FINDINGS OF THE CIT(A). 3. SHRI NEERAJ KUMAR APPEARING ON BEHALF OF THE ASS ESSEE VEHEMENTLY DEFENDED THE IMPUGNED ORDER AND PRAYED FOR DISMISSI NG THE APPEAL BY REVENUE. 4. I HAVE HEARD THE SUBMISSIONS MADE BY RIVAL SID ES AND HAVE EXAMINED THE MATERIAL AVAILABLE ON RECORD. THE AS SESSING OFFICER HAS MADE ADDITION OF ENTIRE ALLEGED BOGUS PURCHASES. IN THE FIRST APPELLATE PROCEEDINGS, THE CIT(A) HAS RESTRICTED THE ADDITIO N TO 25% OF THE HAWALA PURCHASES. THE REVENUE HAS NOT DISPUTED THE TURNOV ER DECLARED BY THE ASSESSEE. THEREFORE, THE ENTIRE ALLEGED BOGUS PURC HASES CANNOT BE ADDED. TAKING INTO CONSIDERATION, ENTIRETY OF FACTS, I F IND THE ORDER OF FIRST APPELLATE AUTHORITY REASONABLE AND HENCE, THE SAM E IS UPHELD. THE APPEAL OF THE REVENUE IS WITHOUT ANY MERIT AND THE SAME IS DISMISSED. 3 ITA NO. 6980/MUM/2018(A.Y.2010-11) 5. IN THE RESULT, THE APPEAL OF REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY, TH E 6 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