INCOME TAX OFFICER 30(1)(2), MUMBAI V. BIPIN UMAKANT JOSHI, MUMBAI

ITA 957/MUM/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6471 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 19-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K GUBGOTRA J
• Assessee Lawyers: LAJARI OSWAL
• Keywords: Bogus purchase
• Section: 143(3)

Judgement Text

MIN THE INCOME TAX APPELLATE TRIBUNAL SMC, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, ACCOUNTANT MEMBER ITA NO. 956 & 957/MUM/2019 ( ASSESSMENT YEAR: 2010-11 & 2011-12) I.T.O.-30(1)(2), ROOM NO. 505, 5 TH FLOOR, C-13, PRATYAKSHAKAR BHAVAN, BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI-400051. VS. SHRI BIPIN UMAKANT JOSHI, GAYATRI ENTERPRISES, BLOCK-3, SITA SADAN, HAJI BAPU ROAD, MALAD (E), MUMBAI-400097. PAN/GIR NO.AACPJ 1374 N (APPELLANT ) .. (RESPONDENT ) REVENUE BY SHRI R.K. GUBGOTRA (JCIT-DR) ASSESSEE BY SHRI LAJARI OSWAL (AR) DATE OF HEARING 06/02/2020 DATE OF PRONOUNCEMENT 07/02/2020 / O R D E R PER: R.C. SHARMA, A.M. THESE ARE THE APPEALS FILED BY THE REVENUE AGAINST THE COMMON ORDER OF THE LD. CIT(A)-41, MUMBAI DATED 30/11/2018 FOR THE A.Y. 2010-11 AND 2011-12 IN THE MATTER OF ORDER PASSED U /S 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961 (IN SHORT, THE ACT) . 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PER USED. FACTS IN BRIEF ARE THE ASSESSEE IS A DEALER OF TOOLS ALLOYS STEEL. ON GETTING INFORMATION FROM SALES TAX DEPARTMENT REGARDING THE ASSESSEE TAKING BOGUS PURCHASE BILLS, THE A.O. REOPENED THE ASSESSM ENT AND ADDED ITA NO. 956 & 957/MUM/2019 ITO VS BIPIN UMAKANT JOSHI 2 100% OF THE SAME IN ASSESSEES INCOME. BY THE IMPUG NED ORDER, THE LD. CIT(A) HAS RESTRICTED THE ADDITION TO THE EXTEN T OF 2% AFTER FOLLOWING THE ORDER OF THE TRIBUNAL IN ASSESSEES O WN CASE FOR THE A.Y. 2009-10. 3. FROM THE RECORD I FOUND THAT THE TRIBUNAL HAVE D ECIDED THE APPEAL OF THE ASSESSEE FOR THE IMMEDIATE PRECEDING YEAR I.E. A.Y. 2009-10 VIDE ORDER DATED 19/02/2018 WHEREIN ADDITIO N ON ACCOUNT OF BOGUS PURCHASES WERE RESTRICTED TO THE EXTENT OF 2% AFTER HAVING THE FOLLOWING OBSERVATION: 7.1 I HAVE CONSIDERED RIVAL CONTENTIONS AND CAREFU LLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND FROM RECO RD THAT ASSESSEE IS A DEALER IN TOOLS ALLOY STEEL. DURING THE YEAR U NDER CONSIDERATION, ON THE BASIS OF INFORMATION FROM SALES TAX DEPARTME NT, AO HAS MADE ADDITION IN RESPECT OF SUSPICION SUPPLIERS, WH ICH WAS RESTRICTED BY CIT(A) TO THE EXTENT OF 30%. ASSESSEE HAD SHOWN GP OF 5.66% DURING THE YEAR UNDER CONSIDERATION. BEFORE THE AO, ASSESSEE HAS FILED QUANTITATIVE DETAILS OF PURCHASES AND SALES, CONFIRMATION OF THE SUPPLIERS. KEEPING IN VIEW TOTALITY OF FACTS AND CI RCUMSTANCES OF THE CASE, VIS A VIS, GP DISCLOSED BY ASSESSEE, I DO NOT FIND ANY MERIT FOR FURTHER ADDITION OF 30%. I DIRECT TO RESTRICT ADDIT ION TO THE EXTENT OF 2% OF THE BOGUS PURCHASES. 4. I HAVE GONE THROUGH THE ORDER OF THE TRIBUNAL, T HE FACTS AND CIRCUMSTANCES OF THE CASE ARE SAME AS ARE PREVAILIN G DURING BOTH THE YEARS UNDER CONSIDERATION. RESPECTFULLY FOLLOWING T HE ORDER OF THE TRIBUNAL DATED 19/02/2018, I DO NOT FIND ANY INFIRM ITY IN THE ORDER OF ITA NO. 956 & 957/MUM/2019 ITO VS BIPIN UMAKANT JOSHI 3 THE LD. CIT(A) FOR RESTRICTING ADDITION TO THE EXTE NT OF 2% OF ALLEGED BOGUS PURCHASES WHEN THE ASSESSEE HAD SHOWN G.P. OF 6.28% IN THE A.Y. 2010-11 AND G.P. AT 6.84% IN THE A.Y. 2011-12. 5. SINCE THE FACTS AND CIRCUMSTANCES OF BOTH THE YE ARS UNDER CONSIDERATION ARE PARI MATERIA, THEREFORE, BY FOLLO WING THE REASONING GIVEN IN THE APPEAL FOR THE A.Y. 2010-11, I ALSO UP HOLD THE ACTION OF THE LD. CIT(A) FOR THE A.Y. 2011-12. 6. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 07 TH FEBRUARY, 2020. SD/- (R.C.SHARMA) ACCOUNTANT MEMBER MUMBAI; DATED 07/02/2020 *RANJAN 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//