ASST CIT 17 (2), MUMBAI V. SHRI. JAYANT NANDLAL SHETH , MUMBAI

ITA 8063/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3494 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 31-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY SETHILD
• Keywords: Bogus purchase
• Section: 143(3); 201; 13

Judgement Text

1 - IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI , , BEFORE HONBLE SHRI VIKAS AWASTHY, JM AND H ONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO. 8063/MUM/2019 ( / ASSESSMENT YEAR: 201 2 - 13 ) A CIT - 17(2) ROOM NO. 116 , 1 ST FL OOR KAUTILYA BHAWAN, G - BLOCK NEAR VIDESH BHAWAN, BKC MUMBAI 40 0 0 5 1 / VS. SHRI JAYANT NANDLAL SHETH 26 , M ANDVI CHAMBERS, 3 RD FLOOR 184 SAMUEL STREET MUMBAI - 400 0 09 ./ ./ PAN/GIR NO. AADPS - 7502 - E ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI SANJAY SET HI - LD.DR / RESPONDENT BY : NONE / DATE OF HEARING : 10/06/2021 / DATE OF PRONOUNCEMENT : 10/06/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER): - 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YE AR [AY IN SHORT] 20 12 - 13 CONTEST THE ORDER OF L D. COMMISSIONER OF INCOME TAX (APPEALS) - 28 , MUMBAI [IN SHORT CIT(A) ] DATED 31/10/2019 WHICH HAS PROVIDED CERTAIN RELIEF TO THE ASSESSEE ON ACCOUNT OF ALLEGED BOGUS PURCHASES. 2 2. THOUGH NONE APPEARED FOR ASS ESSEE, HOWEVER, MATERIAL ON RECORD WAS SUFFICIENT FOR DISPOSAL OF THE APPEAL. THE LD. DR PLEADED FOR RESTORATION OF ASSESSMENT FRAMED BY LD. AO. 3.1 THE MATERIAL FACTS ARE THAT THE ASSESSEE BEING RESIDENT INDIVIDUAL STATED TO BE ENGAGED AS CIVIL CONTRACTO R WAS ASSESSED FOR THE YEAR UNDER CONSIDERATION U/S 143(3) ON 09/03/2015 . P URSUANT TO RECEIPT OF CERTAIN INFORMATION FROM DGIT (INV.) / SALES TAX DEPARTMENT, MUMBAI, IT TRANSPIRED THAT THE ASSESSEE MADE ALLEGED BOGUS PURCHASES OF RS. 8.96 LACS FROM AN ENTIT Y NAMELY M/S JINDAL METAL CORPORATION . ACCORDINGLY, THE ASSESSEE WAS REQUIRED TO FILE REQUISITE DETAILS TO SUBSTANTIATE THESE PURCHASES. 3.2 IN SUPPORT OF PURCHASES, THE ASSESSEE FURNISHED COPIES OF PURCHASE BILLS, LEDGER EXTRACTS, PAYMENT DETAILS ETC. HO WEVER, THE ASSESSEE COULD NOT PRODUCE THE SUPPLIER FOR CONFIRMATION OF ACCOUNTS. CONSEQUENTLY, LD. AO ESTIMATED AN ADDITION OF 14.77% AGAINST THESE PURCHASES. THIS RATE WAS NOTHING BUT AVERAGE GROSS PROFIT RATE OF PAST THREE YEARS. 4. THE LD. CIT(A), AFTER CONSIDERING ASSESSEES SUBMISSIONS, RESTRICTED THE ADDITIONS TO 12.5%. AGGRIEVED, THE REVENUE IS IN FURTHER APPEAL BEFORE US. 5. GOING BY THE FACTUAL MATRIX AS ENUMERATED IN THE ORDERS OF LOWER AUTHORITIES, WE FIND THAT ASSESSEES SALES TURNOVER WAS NOT IN DOUBT AND THE ASSESSEE WAS IN POSSESSION OF PRIMARY PURCHASE DOCUMENTS. THE PAYMENT TO THE SUPPLIER WAS THROUGH BANKING CHANNELS. THERE COULD BE NO SALE WITHOUT ACTUAL PURCHASE OF MATERIAL KEEPING IN VIEW THE ASSESSEES NATURE OF BUSINESS. THE FACTS OF THE CASE MADE IT A FIT CASE TO ESTIMATE THE PROFIT ELEMENT EMBEDDED IN THESE TRANSACTIONS. THE LD. CIT(A), AFTER DUE 3 CONSIDERATION OF ASSESSEES SUBMISSIONS, ESTIMATED THE ADDITIONS @12.5% WHICH IS MORE THAN ENOUGH TO TAKE CARE OF THE LEAKAGE OF REVENUE. T HEREFORE, THE ESTIMATION COULD NOT BE TERMED AS UNJUSTIFIED, IN ANY MANNER. FINDING NO REASON TO INTERFERE IN THE IMPUGNED ORDER, WE DISMISS THE APPEAL. 6. THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED ON 1 0 TH JUNE, 2021. SD/ - SD/ - (VIKAS AWASTHY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 10/06/2021 SR.PS, JAISY VARGHESE / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MU MBAI.