SAHABULLAH MOHD. SHARIF KHAN, MUMBAI V. ITO 20(3)(2), MUMBAI

ITA 7351/MUM/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6265 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 02-12-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SANJAY J SETHI LD
• Keywords: Bogus purchase
• Section: 143(3)

Judgement Text

1 - IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI , , BEFORE HONBLE SHRI C.N. PRASAD , JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) 1 . ./ I.T.A. NO. 7351 /MUM/20 1 9 ( / ASSESSMENT YEAR : 2009 - 10 ) SHAHABULLAH MOHD. SHARIF KHAN SHOP NO. 3, BPT, PLOT NO. 218, KOLSA BUNDER, DAR UKHANA MUMBAI - 400 010 / VS. ITO - 20(3)(2 ) , R . NO. 612, 6 TH FLOOR, PIRAMAL CHAMBER LALBAUG, PAREL, MUMBAI - 400 012 ./ ./ PAN/GIR NO . A MBPK - 5209 - N ( / APPELLANT ) : ( / RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : SHRI SANJAY J. SETHI - LD. SR.DR / DATE OF HEARING : 02 /09 /2021 / DATE OF PRONOUNCEMENT : 02/09/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR AY 20 09 - 10 ARISES OUT OF THE O RDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS) - 32 MUMBAI [CIT(A)] DATED 28/08/2019 IN THE MATTER OF ASSESSMENT FRAMED BY LD. ASSESSING OFFICER (AO) U/S 143(3) R.W.S. 147 ON 27/03/2015. THE SOLE SUBJECT MATTER OF APPEAL IS ESTIMATION OF ADDITION ON ACCOUN T OF ALLEGED BOGUS PURCHASES. THE ASSESSEE BEING RESIDENT INDIVIDUAL IS STATED TO BE 2 ENGAGED AS IRON AND STEEL DEALER UNDER PROPRIETORSHIP CONCERN NAMELY M/S SAGAR TUBES STEEL. 2. AT THE TIME OF HEARING, NONE APPEARED FOR ASSESSEE. HOWEVER, THE MATERIAL ON RECORD WAS SUFFICIENT FOR DISPOSAL OF THE APPEAL. THE LD. SR. DR PLEADED FOR DISMISSAL OF THE APPEAL. 3. UPON PERUSAL OF ASSESSMENT ORDER, IT COULD BE SEEN THAT THE CASE WAS REOPENED PURSUANT TO RECEIPT OF CERTAIN INFORMATION FROM SALES TAX DEPARTMENT, MA HARASHTRA ON THE BASIS OF WHICH IT WAS ALLEGED THAT THE ASSESSEE MADE SUSPICIOUS PURCHASES OF RS.117.51 LACS FROM 4 ENTITIES AS DETAILED IN PARA 3 OF THE ORDER. THOUGH THE ASSESSEE FURNISHED PURCHASE BILLS, HOWEVER, NOTICING THAT THE SUPPLIERS WERE NOT FOU ND AT THE GIVEN ADDRESSES, LD. AO ESTIMATED ADDITION OF 12.5%. 4. THE LD. CIT(A), WHILE CONFIRMING THE STAND OF LD. AO, NOTED THAT THE ASSESSEE HAD REFLECTED GROSS PROFIT RATE OF 14.62% AND CONSIDERING ASSESSEES NATURE OF BUSINESS, THE ADDITION OF 5% WOUL D BE FAIR AND REASONABLE. STILL AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 5. UPON PERUSAL OF IMPUGNED ORDER, WE FIND THAT LD. CIT(A) HAS PASSED A WELL REASONED AND SPEAKING ORDER AFTER CONSIDERING FACTUAL MATRIX OF THE CASE. THE ESTIMATION OF 5% IN STEEL BUSINESS WAS QUITE FA I R AND REASONABLE WHICH WOULD NOT REQUIRE ANY INTERFERENCE ON OUR PART. 6. THE APPEAL STAND DISMISSED. ORDER PRONOUNCED ON 02 ND SEPTEMBER, 2021. SD/ - SD/ - ( C. N. PRASAD ) (MAN OJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 02/09/2021 SR.PS, DHANANJAY 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI .