OILWELL OIL CENTRE, MUMBAI V. ITO, 27(2)(3), MUMBAI

ITA 725/MUM/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6654 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 08-02-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R K GUBGOTRA J
• Assessee Lawyers: JITENDRA SINGH
• Keywords: Bogus purchase
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, ACCOUNTANT MEMBER ITA NO.725/MUM/2019 ( ASSESSMENT YEAR: 2011-12) M/S OILWELL OIL CENTRE, SHOP NO. 1538, LOTUS COLONY, GOVANDI, MUMBAI- 400043. VS. I.T.O.-27(2)(3) 417, 4 TH FLOOR, TOWER NO. 6, VASHI STATION COMPLEX, VASHI, NAVI MUMBAI- 400703. PAN/GIR NO. AAAFO 7027 K (APPELLANT ) .. (RESPONDENT ) ASSESSEE BY SHRI JITENDRA SINGH (ADV) REVENUE BY SHRI R.K. GUBGOTRA (JCIT-DR) DATE OF HEARING 04/02/2020 DATE OF PRONOUNCEMENT 04/02/2020 / O R D E R PER: R.C. SHARMA, A.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 20/12/2018 OF LD. CIT(A)-25, MUMBAI FOR THE A.Y. 20 11-12 IN THE MATTER OF ORDER PASSED U/S 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961 (IN SHORT, THE ACT). 2. IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED FOR CO NFIRMING ADDITION OF 12.5% IN RESPECT OF BOGUS PURCHASES. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PER USED. FACTS IN BRIEF ARE THAT THE ASSESSEE IS ENGAGED IN THE BU SINESS OF TRADING OF EDIBLE OIL AND GHEE. THE A.O. GOT INFORMATION FROM THE SALES TAX ITA NO. 725/MUM/2019 M/S OILWELL OIL CENTRE VS ITO 2 DEPARTMENT REGARDING BOGUS PURCHASES BILL TAKEN BY THE ASSESSEE. THE A.O. MADE ADDITION BY ESTIMATING PROFIT AT 12.5 % ON SUCH BOGUS PURCHASES. BY THE IMPUGNED ORDER, THE LD. CIT(A) HA S CONFIRMED THE ACTION OF THE A.O. AGAINST WHICH THE ASSESSEE IS IN APPEAL BEFORE THE ITAT. 4. IT WAS CONTENDED BY THE LD AR OF THE ASSESSEE TH AT THE ASSESSEE HAS FILED DETAILS OF PURCHASES, CORRESPOND ING SALES, STOCK REGISTER AND DELIVERY CHALLAN ETC.. HOWEVER, NO DEF ECT WAS FOND IN ALL THESE DETAILS. HE FURTHER CONTENDED THAT THE ASSESS EE WAS HAVING AVERAGE G.P. OF 4% IN THE LAST THREE YEARS, THEREFO RE, FURTHER ADDITION OF 12.5% WAS NOT JUSTIFIED. 5. ON THE OTHER HAND, THE LD DR HAS CONTENDED THAT THE A.O. HAS VERY REASONABLY ESTIMATED PROFIT AT 12.5% AFTER ASC ERTAINING THAT THE ASSESSEE HAS NOT PRODUCED BILLS FROM THE SUPPLIER F ROM WHOM HE HAS ACTUALLY PURCHASED THE GOODS. 6. I HAVE CONSIDERED THE RIVAL CONTENTIONS AND CARE FULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOU ND FROM THE RECORD THAT THE ASSESSEE HAS FILED DETAILS OF PURCH ASES MADE BY HIM ALONGWITH STOCK REGISTER, DELIVERY CHALLANS, EVIDEN CE OF DISPATCH. THERE WAS ONE TO ONE TALLY OF PURCHASES AND HENCE, KEEPING IN VIEW THE G.P. SHOWN BY THE ASSESSEE, A FURTHER ADDITION OF 12.5% WILL BE ITA NO. 725/MUM/2019 M/S OILWELL OIL CENTRE VS ITO 3 EXCESSIVE. KEEPING IN VIEW THE TOTALITY OF FACTS AN D CIRCUMSTANCES AND THE NATURE OF ASSESSEES BUSINESS, I DIRECT THE A.O. TO RESTRICT ADDITION TO THE EXTENT OF 10%. I DIRECT ACCORDINGLY . 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART. ORDER PRONOUNCED IN THE OPEN COURT ON 04 TH FEBRUARY, 2020. SD/- (R.C.SHARMA) ACCOUNTANT MEMBER MUMBAI; DATED 04/02/2020 *RANJAN COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//