ACIT 24 (2), Mumbai V. MOHD. RAFIQ NAVLAKHIYA, Mumbai

ITA 893/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4087 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 15-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY JAISWAL DR
• Assessee Lawyers: VIRAG SHAH
• Keywords: Bogus purchase
• Section: 143(3); 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH D, MUMBAI , , $ BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI RAJESH KUMAR, ACCOUNTANT MEMBER . 893 //201 9 (. . 2010-11 ) ITA NO. 893/MUM/2019 (A.Y.2010-11) THE ACIT 24(2), ROOM NO.613, 6 TH FLOOR, PIRAMAL CHAMBERS, LALBAUG, PAREL, MUMBAI 400012 ...... - / APPELLANT VS. MOHD. RAFIQ NAVLAKHIYA 401, JUNE APARTMENTS, GAUTAM LANE-2, ANDHERI (W), MUMBAI-400058. PAN: ACQPN5792 ..... ./ RESPONDENT - 0/ APPELLANT BY : SHRI VIJAY JAISWAL [DR (CIT)] . 0/ RESPONDENT BY : SHRI VIRAG SHAH (AR) 1 / DATE OF HEARING : 19/10/2020 1 / DATE OF PRONOUNCEMENT : 26/10/2020 / ORDER PER VIKAS AWASTHY, JM: THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER O F COMMISSIONER OF INCOME-TAX (APPEALS)-36, MUMBAI [IN SHORT (CIT(A) ] DATED 28.11.2018 FOR THE ASSESSMENT YEAR 2010-11. 2 ITA NO. 893/MUM/2019 (A.Y.2010-11) 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM RE CORDS ARE: THE ASSESSEE IS A TRADER AND DEALER OF TELECOMMUNICATION EQUIPME NTS. ON THE BASIS OF INFORMATION RECEIVED FROM MAHARASHTRA SALES TAX DEP ARTMENT THE ASSESSMENT FOR A.Y. 2010-11 WAS RE-OPENED ON THE GROUND THAT T HE ASSESSEE HAS OBTAININED BOGUS PURCHASE BILLS TO THE TUNE OF RS. 2,81,77,639/- FROM NOTIFIED HAWALA DEALERS. THE ASSESSING OFFICER ESTIMATED GRO SS PROFIT ON BOGUS PURCHASES @ 13% AND MADE ADDITION OF RS. 36,63,093/ -. AGGRIEVED AGAINST THE ASSESSMENT ORDER DATED 11.02. 2016 PASSED UNDER SECTION 143(3) R.W. SECTION 147 OF THE INCOME TAX A CT, 1961 (HEREINAFTER REFERRED THE ACT), THE ASSESSEE FILED APPEAL BEFO RE THE CIT(A). THE FIRST APPELLATE AUTHORITY AFTER EXAMINING THE FACT OF CAS E AND CONSIDERING THE AVERAGE GROSS PROFIT IN THE LINE OF ELECTRONIC TRAD E RESTRICTED THE ADDITION TO 8% GROSS PROFIT ON BOGUS PURCHASES. AGAINST THE FINDIN GS OF CIT(A), THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. 3. SHRI VIJAY JAISWAL REPRESENTING THE DEPARTMENT V EHEMENTLY DEFENDED THE ASSESSMENT ORDER AND PRAYED FOR SETTING-ASIDE T HE FINDINGS OF CIT(A) AND RESTORING THE ADDITION MADE IN ASSESSMENT ORDER. 5. PER CONTRA, SHRI VIRAG SHAH APPEARING ON BEHALF OF THE ASSESSEE VEHEMENTLY DEFENDED THE ORDER OF CIT(A). THE LD. AR SUBMITTED THAT GROSS PROFIT @ 13% ESTIMATED BY ASSESSING OFFICER WAS VER Y MUCH ON THE HIGHER SIDE. THE AR FURNISHED TRADING, PROFIT & LOSS A/C FOR THE FINANCIAL YEAR ENDED ON 31.03.2010 TO SHOW THAT THE GROSS PROFIT OF ASSESSE E FOR THE IMPUGNED ASSESSMENT YEAR WAS 8.98% AND THE CIT(A) HAS MADE A DDITION IN LINE WITH THE GROSS PROFIT OF THE ASSESSEE. 3 ITA NO. 893/MUM/2019 (A.Y.2010-11) 6. WE HAVE HEARD THE SUBMISSIONS MADE BY RIVAL SIDE S AND HAVE EXAMINED THE ORDERS OF AUTHORITIES BELOW. ADMITTEDLY, THE AS SESSEE HAD INDULGED IN OBTAINING BOGUS PURCHASE BILLS FROM HAWALA DEALERS. THE ASSESSEE COULD NOT FURNISH THE DOCUMENTS VIZ. DELIVERY CHALLANS, LORRY RECEIPTS, STOCK REGISTER ETC. TO SUBSTANTIATE TRAIL OF GOODS. THE ASSESSING OFFIC ER ESTIMATED GROSS PROFIT ON SUCH UNPROVED PURCHASES @ 13%. IN FIRST APPELLATE P ROCEEDINGS, THE CIT(A) REDUCED THE GROSS PROFIT TO 8%. THE ASSESSEE HAS FI LED COPY OF AUDITED ACCOUNTS FOR THE FINANCIAL YEAR 2009-10. AS PER THE DOCUMENTS FURNISHED BY THE ASSESSEE, THE GROSS PROFIT FOR THE PERIOD RELEV ANT TO ASSESSMENT YEAR UNDER APPEAL IS 8.98%. 7. WE ARE OF CONSIDERED VIEW THAT THE GROSS PROFIT ESTIMATED BY CIT(A) IS NEARLY THE SAME AS DECLARED BY THE ASSESSEE. WE FIN D NO REASON TO DISTURB THE ORDER OF CIT(A), HENCE, THE SAME IS UPHELD AND THE APPEAL OF REVENUE IS DISMISSED SANS MERIT. 8. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN OPEN COURT ON MONDAY THE 26 TH DAY OF OCTOBER, 2020. SD SD/- ./- SD/- SD./- (RAJESH KUMAR) (VIKAS AW ASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / MUMBAI, 5/ DATED: 26/10/2020 S.K., PS . 6 . 6 . 6 . 6 COPY OF THE ORDER FORWARDED TO : 4 ITA NO. 893/MUM/2019 (A.Y.2010-11) 1. - / THE APPELLANT , 2. . / THE RESPONDENT. 3. 7 ( )/ THE CIT(A)- 4. 7 CIT 5. . , . . . , / DR, ITAT, MUMBAI 6. : / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI