WESTERN PLASTIC & RUBBER WORKS, MUMBAI V. ITO 24(3)(4), MUMBAI

ITA 923/MUM/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0761 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2017
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 09-02-2017
• Court: TRIBUNAL
• Department Lawyers: A K KARDA M
• Assessee Lawyers: V P KOTHARI
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM ITA NO . 9 23 / MUM/20 1 7 ( ASSESSMENT YEAR : 2009 - 10 ) M/S. WESTERN PLASTIC & RUBBER WORKS, 175 - 5, AMIZARA APARTMENT, JAWHAR NAGAR, GOREGAON (W), MUMBAI 400 062 VS. ITO 24(3)(4), MUMBAI PAN/GIR NO. AAAFW0242J APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI V.P. KOTHARI REVENUE BY SHRI A.K. KARDAM DATE OF HEARING 09 / 05 /201 7 DATE OF PRONOUNCEME NT 15 / 05 /201 7 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 42, MUMBAI DATED 23/09/2016 FOR THE A.Y.2009 - 10 IN THE MATTER OF ORDER PASSED U/S.143(3) R.W.S. 147 OF THE IT ACT. 2. IN THIS APPEAL ASSESSEE IS A GGRIEVED FOR ADDITION OF RS.4,18,766/ - ALLEGED TO BE BOGUS PURCHASES. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. FACTS IN BRIEF ARE THAT THE ASSESSEE IS A PARTNERSHIP FIRM ENGAGED IN THE BUSINESS OF MANUFACTURING AND TRADING OF ELECTR ICAL GOODS. THE ASSESSEE HAD FILED ITS RETURN OF INCOME ON 25.09.2009 DECLARING A TOTAL INCOME OF RS . 5,39,514/ - . THE SAME WAS MERELY PROCESSED U/ S 143(1) OF THE ACT. SUBSEQUENTLY THE AO RECEIVED INFORMATION FROM THE OFFICE OF THE DGIT(INV), MUMBAI THAT THE ITA NO. 9 23/MUM/2017 M/S. WESTERN PLASTIC & RUBBER WORKS 2 ASSESSEE IS A BENEFICIARY OF ACCOMMODATION BILL OF PURCHASES FROM CERTAIN BOGUS HAWALA DEALERS. THE INFORMATION WAS THAT THE CONCERNED DEALERS HAD NOT SOLD ANY ACTUAL GOODS BUT HAD GIVEN BOGUS BILLS OF SALES TO THE ASSESSEE. THE AO NOTED THAT THE ASSESSEE HAS TAKEN ACCOMMODATION E NTRIES FROM TWO HAWALA DEALERS. ACCORDINGLY THE AO INITIATED ACTION UNDER SECTION 147 OF THE ACT. IN THE ASSESSMENT FRAMED U/S.143(3) R.W.S. 147, AO ADDED ENTIRE PURCHASES OF RS.4,18,7 66/ - U/S.69C. 4 . BY THE IMPUGNED ORDER CIT(A) CONFIRMED ACTION OF THE AO. 5 . I HAVE CONSIDERED RIVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND FROM RECORD THAT CORRESPONDING SALES OF SUCH ALLEGED BOGUS PURCHASES WAS NOT DENIED BY THE AO AND ON THE TOTAL SALE S SO AFFECTED, ASSESSEE HAS OFFERED GP OF 26.24%. WHEN THE CORRESPONDING SALES HAVE NOT BEEN DENIED, IT IS NOT CORRECT TO ADD THE ENTIRE AMOUNT OF SUCH PURCHASES IN ASSESSEES INCOME. 6 . KEEPING IN VIEW TOTALITY OF FACTS AND CIRCUMSTANCES OF THE CASE VIS - - VIS GP OF 26.24% DECLARED BY THE ASSESSEE AND NATURE OF ITS BUSINESS, I DEEM IT PROPER TO RESTRICT THE ADDITION TO THE EXTENT OF 5% OF SUCH PURCHASES. I DIRECT ACCORDINGLY. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 15 / 05 /2017 S D/ - ( R.C.SHARMA ) ACCOUNTANT MEMBER MUMBAI ; DATED 15 / 05 /201 7 KARUNA SR. PS ITA NO. 9 23/MUM/2017 M/S. WESTERN PLASTIC & RUBBER WORKS 3 COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//