KETAN LALITCHAND SHAH, MUMBAI V. INCOME TAX OFFICER, WARD - 30(2)(1), MUMBAI

MA 326/MUM/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2395 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 8 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 09-11-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 01-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM MA NO.326/MUM/2018 (ARISING OUT OF ITA NO. 4481 / MUM/20 1 7) ( ASSESSMENT YEAR : 2011 - 12 ) & MA NO.327/MUM/2018 (ARISING OUT OF ITA NO. 4479 /MUM/20 17) ( ASSESSMENT YEAR : 200 9 - 10 ) SHRI KETAN LALITCHAND SHAH 1104, ANAND APARTMENT, GORAS WADI, NEAR MILAP CINEMA, MALAD (W), MUMBAI 400 064 VS. THE INCOME TAX OFFICER, WARD 20(2)(1) MUMBAI PAN/GIR NO. AMXPS9410R ( APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY SHRI HARESH P. SHAH REVENUE BY SHRI MANOJ KUMAR SINGH DATE OF HEARING 09 / 11 /201 8 DATE OF PRONOUNCEMENT 09 / 11 /201 8 / O R D E R PER R.C.SHARMA (A.M) : THESE M.A AROSE OUT OF ITA NOS.4481/MUM/2017 & 4479/MUM/2017. 2. THROUGH THESE M.AS, IT WAS CONTENDED BY LEARNED AR THAT THE TRIBUNAL WHILE DECIDING THE FINAL PERCENTAGE OF ADDITION IN RESPECT OF BOGUS PURCHASES HAS WRONGLY TAKEN THE NET PROFIT AS AGAINST THE GROSS PROFIT OF THE RESPECTIVE YEAR S UNDER CONSIDERATION. M A NO. 326/MUM/2018 SHRI KETAN LALITCHAND SHAH 2 3. I HAVE HEARD RIVAL CONTENT IONS AND FOUND THAT ADDITION OF 12.5% AS UPHELD BY CIT(A) IN RESPECT OF BOGUS PURCHASES WAS DIRECTED BY THE TRIBUNAL TO BE REDUCED BY THE NET PROFIT RATE SHOWN BY ASSESSEE IN THE A.Y.2009 - 10 AND 2011 - 12 @2.76% TO 3.95% RESPECTIVELY. HOWEVER, SINCE THE ADDI TION WAS MADE IN RESPECT OF PURCHASES, THE GP IS RELEVANT FOR THE SAME, ACCORDINGLY, WE MODIFY / CORRECT OUR ORDER AND DIRECT THE AO TO REDUCE THE GP RATE OF 5.71% FOR THE A.Y 2009 - 10 AND 8.39% IN THE A.Y.2011 - 12 , OUT OF PROFIT RATE OF 12.5% UPHELD BY THE LOWER AUTHORITIES. 4. IN THE RESULT, MISCELLANEOUS APPLICATIONS ARE ALLOWED IN PART. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 09 / 11 /201 8 SD/ - (R.C.SHARMA) ACCOUNTANT MEMBER MUMBAI ; DATED 09 / 11 /201 8 KARUNA SR. PS 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//