ITO - 17(3)(4), MUMBAI V. T. R. GEMS, MUMBAI

MA 500/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 1854 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 7 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-11-2020
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 30-08-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VERMA
• Assessee Lawyers: MAYYR R MAKADIA
• Keywords: Bogus purchase
• Section: 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT MA NOS. 500 & 501 /MUM/2019 ( ASSESSMENT YEARS: 2012-13 & 2013-14 ) ITO 17(3)(4) RM. NO. 130, KAUTILYA BHAVAN, G-BLAOCK, BKC., MUMBAI 400051 / VS. T.R. GEMS SHOPPING ARCADE, THE TAJ MAHAL PLACE, APOLLO BUNDER, MUMBAI 400001. ./ ./ PAN/GIR NO. : AAFFT7449H ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SMT. VERMA, DR / RESPONDENT BY : SHRI MAYYR R. MAKADIA, AR / DATE OF HEARING 06/11/2020 !'# / DATE OF PRONOUNCEMENT 06/11/2020 / O R D E R MAHAVIR SINGH - VP: BY WAY OF THESE MISCELLANEOUS APPLICATION THE REVE NUE HAS REQUESTED FOR RECALLING OF TRIBUNALS ORDER IN ITA NOS. 3389 & 3390/MUM/2018, DATED 06.02.2019. 2. AT THE OUTSET, LD. SR DR STATED THAT THIS A CAS E OF BOGUS PURCHASES AND EVEN NOTICES ISSUED U/S 133(6) OF THE ACT TO M/S. LAXMI ENTERPRISES AND M/S SANGHAM EXPOR TS MA NO. 500 & 501/MUM/2019 M/S. TR GEMS, MUMBAI. - 2 - EITHER NOTICES ARE COMPLIED WITH OR RETURNED UN-SER VED. ACCORDING TO HER, THE CIT(A) AND A.O HAS RIGHTLY TR EATED THE ENTIRE PURCHASES AS BOGUS AND CONSIDERING THE ENTIR E AMOUNT OF BOGUS PURCHASES FOR ADDITION. SHE STATED THAT THE TRIBUNAL HAS APPLIED A PROFIT RATE @ 12.5% WHIC H ACCORDING TO HER IS NOT AS PER LAW. 3. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSES SEE SUPPORTED THE ORDER OF THE TRIBUNAL. 4. AFTER HEARING BOTH THE SIDES AND GOING THROUGH T HE FACTS OF THE CASE, I NOTED THAT THE REVENUE COULD N OT POINT OUT ANY MISTAKE APPARENT FROM RECORD IN THE ORDER O F THE TRIBUNAL, AS THE TRIBUNAL HAS HELD THE PURCHASES AS BOGUS, BUT, SINCE THE REVENUE COULD NOT POINT OUT THAT SAL ES HAS NO EFFECTED OUT OF THESE BOGUS PURCHASES, TRIBUNAL RIG HTLY REACHED TO A CONCLUSION THAT ONLY PROFIT RATE IS TO BE APPLIED. ACCORDINGLY, A PROFIT RATE OF 12.5% WAS A PPLIED. HENCE, I FIND NO MISTAKE APPARENT IN THE ORDER OF T HE TRIBUNAL AND DISMISSED THE MISCELLANEOUS APPLICATIO N OF THE REVENUE. MA NO. 500 & 501/MUM/2019 M/S. TR GEMS, MUMBAI. - 3 - 5. IN THE RESULT, THE MA FILED BY THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 06.11.2020 SD /- (MAHAVIR SINGH ) VICE PRESIDENT MUMBAI, DATED 06/11/2020 KRK, PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. & '( ) / THE CIT(A) 4. ) ( ) / CONCERNED CIT 5. ,-. //'( , '(# , & / DR, ITAT, MUMBAI 6. .34 5 / GUARD FILE. / BY ORDER, , / //TRUE COPY// 1. / ( ASST. REGISTRAR) !' #, / ITAT, MUMBAI