ACIT 19 (3), MUMBAI V. SHRI. RAJENDRA H SALOT, MUMBAI

ITA 7075/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1408 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 18-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY J SETHI LD
• Keywords: Bogus purchase
• Section: 143(3); 133(6)

Judgement Text

ITA NO.7075/MUM/2019 SHRI RAJENDRA H. SALOT ASSESSMENT YEAR: 2009-10 1 - IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI , , BEFORE HONBLE SHRI AMARJIT SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO.7075/MUM/2019 ( / ASSESSMENT YEAR: 2009-10) ACIT - 19(3) 2 ND FLOOR, ROOM NO.206 MATRU MANDIR BLDG. TARDEO ROAD, MUMBAI-400 007 / VS. SHRI RAJENDRA H. SALOT 18, MAHESHWAR PRAKASH BUILDING NO.1, JAIN DERASAR LANE SANTACRUZ (E), MUMBAI-400 054 '# ./ ./PAN/GIR NO. AALPS-6170 L ( !#% /APPELLANT ) : ( &'#% / RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : SHRI SANJAY J. SETHI-LD. DR / DATE OF HEARING : 06/07/2021 / DATE OF PRONOUNCEMENT : 06/07/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY REVENUE FOR AY 2009-10 CONTE ST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-5 1 MUMBAI [CIT(A)] DATED 09/08/2019 WHICH HAS GRANTED PARTIAL RELIEF TO THE ASSESSEE ON ACCOUNT OF ALLEGED BOGUS PURCHASES. 2. AT THE TIME OF HEARING, NONE APPEARED FOR ASSESS EE. HOWEVER, THE MATERIAL ON RECORD WAS SUFFICIENT FOR DISPOSAL OF THE APPEAL. THE LD. DR PLEADED FOR RESTORATION OF ASSES SMENT AS ITA NO.7075/MUM/2019 SHRI RAJENDRA H. SALOT ASSESSMENT YEAR: 2009-10 2 FRAMED BY LD. AO U/S 143(3) R.W.S. 147 ON 23/03/201 5. THE ASSESSEE BEING RESIDENT INDIVIDUAL IS STATED TO BE ENGAGED IN TRADING OF PLASTIC PRODUCTS UNDER PROPRIETORSHIP CO NCERN NAMELY M/S R.P.COMPUTECH. 3. THE MATERIAL FACTS ARE THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS, PURSUANT TO RECEIPT OF CERTAIN INFORMA TION FROM SALES TAX DEPARTMENT, MAHARASHTRA, IT TRANSPIRED THAT THE ASSESSEE MADE SUSPICIOUS PURCHASES OF RS.9.90 LACS FROM AN E NTITY NAMELY M/S DEEPALI ENTERPRISES. THE ASSESSEE PURCHASED PLA STIC PACKAGING BOXES FROM THE SAID SUPPLIER. THE NOTICE ISSUED U/S 133(6) TO THE SAID SUPPLIER DID NOT ELICIT ANY SATI SFACTORY RESPONSE AND THE SUPPLIER COULD NOT BE FOUND AT THE GIVEN AD DRESS. AFTER CONSIDERING ASSESSEES SUBMISSIONS, LD. AO FORMED A N OPINION THAT THE PURCHASES WERE MADE TO INFLATE THE EXPENSE S AND TO REDUCE THE TAXABLE PROFITS. ACCORDINGLY, THE PURCHA SES WERE DISALLOWED IN ENTIRETY AND ADDED BACK TO THE INCOME OF THE ASSESSEE. 4. THE LD. CIT(A) OBSERVED THAT THE ASSESSEE WAS MA INTAINING STOCK REGISTER FOR PLASTIC BEADS BUT DID NOT MAINTA IN STOCK RECORD FOR PACKAGING BOXES. GOING BY THE SALES MADE BY THE ASS ESSEE, THE ASSESSEE COULD HAVE ONLY CONSUMED 5000 BOXES INSTEA D OF 5500 BOXES STATED TO BE PURCHASED FROM THE SAID SUPPLIER . THE REMAINING 500 BOXES WERE NOT SHOWN IN CLOSING STOCK. ACCORDIN GLY WAS RESTRICTED TO THE EXTENT OF 40%. AGGRIEVED, THE REV ENUE IS IN FURTHER APPEAL BEFORE US. 5. AFTER GOING THROUGH THE IMPUGNED ORDER, WE FIND THAT LD. CIT(A) HAS PASSED A VERY JUDICIOUS AND REASONABLE O RDER AFTER ITA NO.7075/MUM/2019 SHRI RAJENDRA H. SALOT ASSESSMENT YEAR: 2009-10 3 CONSIDERING THE FACTUAL MATRIX. THE LD. CIT(A) WAS QUITE RIGHT IN OBSERVING THAT KEEPING IN VIEW THE SALE MADE BY THE ASSESSEE, THE ASSESSEE COULD HAVE CONSUMED ONLY 5000 BOXES OF PAC KAGING MATERIAL. THEREFORE, THE ESTIMATION OF 40% WAS QUIT E FAIR AND JUDICIOUS. FINDING NO REASON TO INTERFERE IN THE IM PUGNED ORDER, WE DISMISS THE APPEAL. 6. THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED ON 06 TH JULY, 2021. SD/- SD/- (AMARJIT SINGH) (MANOJ K UMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 06/07/2021 SR.PS, JAISY VARGHESE !'#' / COPY OF THE ORDER FORWARDED TO : 1. !#% / THE APPELLANT 2. &'#% / THE RESPONDENT 3. - ( ! ) / THE CIT(A) 4. - / CIT CONCERNED 5. ./& 0 , ! 0 , / DR, ITAT, MUMBAI 6. /123 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.