PARESH VANITLAL SHAH, MUMBAI V. ACIT 15 (1), MUMBAI

ITA 7567/MUM/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9034 (ITAT-MUMBAI)
• Duration Of Justice: 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 10-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RADHA HALBE
• Keywords: Bogus purchase; Opportunity of being heard; Accommodation entries
• Section: 143(1); 147; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT, AND SHRI SAKTIJIT DEY , JUDICIAL MEMBER ITA NO. 7567 / MUM ./201 9 ( ASSESSMENT YEAR : 20 09 10 ) ITA NO. 7568 /MUM./201 9 ( ASSESSMENT YEAR : 2011 12 ) PARESH VANITLAL SHAH 1402, 14 TH FLOOR, CENTRE POINT 90FT ROAD, MULUND (EAST) MUMBAI 400 081 PAN AAEPS6162P . APPELLANT V/S ASSTT. COMMISSIONER OF INCOME TAX CIRCLE 15(1), MUMBAI . RESPONDENT ASSE SSEE BY : MS. RADHA HALBE REVENUE BY : SHRI AVNEESH TIWARI DATE OF HEARING 03 . 0 1 .20 20 DATE OF ORDER 08.01.2020 O R D E R PER SAKTIJIT DEY, J.M. T HE AFORESAID APPEAL S HA VE BEEN FILED BY THE ASSESSEE CHALLENGING TWO SEPARATE ORDER S , BOTH DATED 11 TH OCTOBER 2019, PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 40, MUMBAI, PERTAINING TO THE ASSESSMENT YEAR S 2009 10 AND 2011 12. 2. THOUGH , THE AFORESAID APPEALS WERE FIXED TODAY FOR CONSIDERING ASSESSEES APPLICATIONS FOR FIXING AN EARLY DATE OF HEARING, HOWEVER, ON THE CONSENT OF THE LEARNED AUTHORISED REPRESENTATIVE AS WELL AS THE 2 PARESH VANITLAL SHAH LEARNED DEPARTMENTAL REPRESENTATIVE, THESE APPEALS WERE TAKE UP FOR HEARING ON SUBSTANTIVE BASIS. 3. BRIEF FACTS ARE, THE ASSESSEE , AN INDIVIDUAL , CARRIES ON B USINESS IN WHOLESALE TRADING IN FERROUS AND NON FERROUS M ETALS THROUGH ITS PROPRIETARY CONCERN M/S. PADMASHRI METAL INDUSTRIES. FOR THE ASSESSMENT YEAR UNDER CONSIDERATION, THE ASSESSEE HAD FILED ITS RETURN S OF INCOME IN REGULAR COURSE AND THE RETURNS OF INCOME SO FILED WERE PROCESSED UNDER SECTION 143(1) OF THE ACT. SUBSEQUENTLY, ON THE BASIS OF INFORMATION RECEIVED FROM THE SALES TAX DEPARTMENT, GOVERNMENT OF MAHARASHTRA, THAT THE ASSESSEE HAS AVAILED ACCOMMODATION ENTRIES FROM THE HAWALA OPERATOR S BY WAY OF BOGUS PURCHASE BILLS, T HE ASSESSING OFFICER RE OPENED THE ASSESSMENTS UNDER SECTION 147 OF THE ACT AND ULTIMATELY PASSED THE ASSESSMENT ORDERS MAKING CERTAIN ADDITIONS ON ACCOUNT OF BOGUS PURCHASE. AGAINST THE ASSESSMENT ORDERS SO PASSED, THE ASSESSEE PREFERRED APPEALS BEFORE THE FIRST APPELLATE AUTHORITY. 4. AS COULD BE SEEN FROM THE IMPUGNED ORDERS OF LEARNED COMMISSIONER (APPEALS) , THE APPEALS FILED BY THE ASSESSEE WERE DISPOSED OFF EX PARTE SUSTAINING THE ADDITIONS MADE BY THE A .O. 5. WE HAVE HEARD THE RIVAL CONTENTION S AND PERUSED THE MATERIAL ON RECORD. THE ONLY SUBMISSION MADE BY THE LEARNED AUTHORISED 3 PARESH VANITLAL SHAH REPRESENTATIVE BEFORE US IS , SINCE LEARNED COMMISSIONER (APPEALS) HAS NOT PROVIDED REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND DISPOSED OFF THE APPEALS EX PARTE, THE ISSUE MAY BE RESTORED BACK TO THE FILE OF LEARNED COMMISSIONER (APPEALS) FOR DE NOVO ADJUDICATION. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS NOT RAISED ANY SERIOUS OBJECTIONS AGAINST THE AFORESAID SUBMISSIONS OF THE ASSESSEE. KEEPING IN VIEW THE SUBMISSIONS OF THE PARTIES AND ALSO THE FACT THAT THE APPEALS FILED BY THE ASSESSEE WERE DISPOSED OFF EX PARTE BY THE LEARNED COMMISSIONER (APPEALS) WITHOUT PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE, WE ARE INCLINED TO RESTORE THE ISSUE S RAISED IN THE PRESENT APPEAL S TO THE FILE OF LEARNED COMMISSIONER (APPEALS) FOR DE NOVO ADJUDICATION AFTER DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. FURTHER, FOR ENSURING EFFECTIVE DISPOSAL OF APPEALS ON MERITS, WE DIRECT THE ASSESSEE TO APPE AR BEFORE THE LEARNED COMMISSIONER (APPEALS) WITH A COPY OF THIS ORDER TO OBTAIN A DATE OF HEARING AND APPEAR BEFORE HIM ON THE SCHEDULED DATE FOR REPRESENTING HIS CASE . WITH THE AFORESAID OBSERVATIONS, THE GROUNDS ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 08.01.2020 SD/ - PRAMOD KUMAR VICE PRESIDENT SD/ - SAKTIJIT DEY JUDICIAL MEMBER MUMB AI, D ATED: 08.01.2020 4 PARESH VANITLAL SHAH COPY OF THE ORDER FORWARDED TO : (1) THE ASSESSEE; (2) THE REVENUE; (3) THE CIT(A); (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, ITAT, MUMBAI; (6) GUARD FILE . TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETARY ASSISTANT REGISTRAR ITAT, MUMBAI