ITO 33 (1)(8), MUMBAI V. SHRI. SANDEEP PRAMODKUMAR GULATI, MUMBAI

ITA 7698/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1766 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 16-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY J SETHI
• Keywords: Bogus purchase; Accommodation entries

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI , BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 7698 //2019 (. . 2011-12 ) ITA NO.7698/MUM/2019 (A.Y.2011-12) ITO -33 (1)(8), ROOM NO. 919, 9 TH FLOOR, KAUTILYA BHAVAN, BANDRA KURLA COMPLEX, BANDRA (E)-400051 ...... ) / APPELLANT VS. SHRI SANDEEP PRAMODKUMAR GULATI 65/204,EVERSHINE MILLENIUM PARADISE, SECTOR-1, THAKUR VILLAGE, KANDIVALI (E), MUMBAI-400101. PAN: AHGPG8177P .. ... *,/ RESPONDENT ) -/ APPELLANT BY : SH. SANJAY J. SETHI *, -/ RESPONDENT BY : NONE . / DATE OF HEARING : 01/06/2021 . / DATE OF PRONOUNCEMENT : 10/06/2021 / ORDER PER VIKAS AWASTHY, J.M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-45, MUMBAI [HE REINAFTER REFERRED TO AS THE CIT(A)] ' DATED 05.09.2019 FOR THE ASSESSMENT YEAR (AY) 2011-12. 2 . 7698 //2019 (. .2011-12 ) ITA NO.7698/MUM/2019 (A.Y.2011-12) 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM RE CORDS ARE: THE ASSESSEE IS A RESELLER OF HARDWARE AND TOOLS. THE ASSESSMENT IN THE CASE OF ASSESSEE FOR AY 2011-12 WAS REOPENED ON THE BASIS OF INFORMATION RECEIVED FROM THE DGIT (INVESTIGATIONS), MUMBAI. AS PER INFORMATION RECEIV ED, THE ASSESSEE HAD OBTAINED ACCOMMODATION ENTRIES AMOUNTING TO RS. 8,6 8,015/- FROM M/S ANKIT ENTERPRISES. THE AO MADE ADDITION ON ENTIRE ALLEGED BOGUS PURCHASES. AGAINST THE ASSESSMENT ORDER DATED 21.12.2018, THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) AFTER EXAMINING THE FACTS RESTRI CTED THE ADDITION TO 12.5% OF BOGUS PURCHASES. AGAINST THE FINDINGS OF THE CIT(A) , THE REVENUE IS IN APPEAL. 3. SHRI SANJAY J. SETHI REPRESENTING THE DEPARTMENT VEHEMENTLY DEFENDED THE ASSESSMENT ORDER. IN SUPPORT OF HIS SUBMISSIONS , THE LD. DR PLACED RELIANCE ON THE DECISION RENDERED IN THE CASE OF N.K. PROTEI NS LTD. BY THE HONBLE SUPREME COURT OF INDIA. THE LD. DR SUBMITTED THAT T HE ASSESSEE HAS NOT BEEN ABLE TO PROVE GENUINENESS OF THE PURCHASES AND AUTH ENTICITY OF THE DEALER. 4. SUBMISSIONS MADE BY LD. DR HEARD AND ORDERS OF A UTHORITIES BELOW EXAMINED. UNDISPUTEDLY, THE ASSESSEE HAS FAILED TO DISCHARGE HIS ONUS IN PROVING GENUINENESS OF THE DEALER AND THE PURCHASES MADE FROM THE SAID DEALER. AT THE SAME TIME, THE AO ACCEPTED THE SALES TURNOVER DECLARED BY THE ASSESSEE. WITHOUT PURCHASES, THERE CANNOT BE SALE. IN SUCH LIKE BOGUS TRANSACTIONS, IT IS ONLY THE PROFIT ELEMENT EMBEDDE D IN THE TRANSACTION THAT CAN BE BROUGHT TO TAX. (RE: PCIT VS. PARAMSHAKTI DISTRI BUTORS PVT. LTD. IN ITA NO. 413 OF 2017 DECIDED ON 15.07.2019 BY HONBLE BOMBAY HIGH COURT). THE CIT(A) AFTER EXAMINING THE FACTS OF CASE AND CONSIDERING V ARIOUS DECISIONS RENDERED BY THE TRIBUNAL RESTRICTED THE ADDITION TO 12.5% OF BO GUS PURCHASES. I FIND NO 3 . 7698 //2019 (. .2011-12 ) ITA NO.7698/MUM/2019 (A.Y.2011-12) INFIRMITY IN THE IMPUGNED ORDER, HENCE, THE SAME IS UPHELD AND APPEAL OF THE REVENUE IS DISMISSED, BEING DEVOID OF ANY MERIT. ORDER PRONOUNCED IN THE OPEN COURT ON THURSDAY, THE 10 TH DAY OF JUNE, 2021. SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, 3/ DATED: 10/06/2021 SK, PS * 4 * 4 * 4 * 4 COPY OF THE ORDER FORWARDED TO : 1. ) / THE APPELLANT , 2. *, / THE RESPONDENT. 3. 5 ( )/ THE CIT(A)- 4. 5 CIT 5. * , . . . , / DR, ITAT, MUMBAI 6. 9 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI