Yogesh Ashok Lalwani, Pune V. Income-tax Officer, Ward - (HQ)-6(1), Pune

MA 74/PUN/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6053 (ITAT-PUNE)
• Duration Of Justice: 11 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 14-02-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 14-02-2020
• Assessment Year: 2010-2011
• Appeal Filed On: 11-03-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Bogus purchase
• Section: 254(2); 73; 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC , PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT MISCELLANEOUS APPLICATION NO S . 73 & 74/PUN /201 9 ( ARISING OUT OF ITA NO S . 2239 & 2240/PUN /201 7 ) ASSESSMENT YEAR S : 2009 - 10 & 2010 - 11 YOGESH ASHOK LALWANI PR OP. MUNIYOG PLY, A/P BHIGWAN, TAL. INDAPUR, PUNE - 413110 PAN: ABAPL1548F VS. ITO, WARD (HQ) - 6(1), PUNE (APP LICANT ) (RESPONDENT) / ORDER PER R.S.SYAL, VP : VIDE TH ESE MISCELLANEOUS APPLICATION S , THE ASSESSEE SEEK S T O AMEND THE ORDER DATED 2 0.0 2 .2019 , PASSED BY THE TRIBUNAL IN ITA NO S . 2239 & 2240 /PUN/2017 . 2. THE LD. AR CONTENDED THAT THE TRIBUNAL FELL INTO AN ERROR BY NOT ALLOWING APPROPRIATE RELIEF IN GROSS PROFIT (GP) RATE DIRECTED TO BE APPLIED. IT WAS URGED THAT THE GP RATE OUGHT TO HAVE BEEN REDUCED FURTHER. ON THE OTHER HAND, LD. DR STRONGLY OPPOSED THE CONTENTION. APP LICANT BY DR. PRAYAG JHA RESPONDENT BY SHRI ALOK MALVIYA, ADDL.CIT DATE OF HEARING 14 - 02 - 2020 D ATE OF PRONOUNCEMENT 14 - 0 2 - 2020 M A NO S . 73 & 74 /P UN/20 19 YOGESH ASHOK LALWANI 2 3. HAVING HEARD BOTH THE PARTIES AND PERUSED THE RECORD, IT IS OBSERVED THAT FOR THE ASSESSMENT YEAR 2009 - 10 THE ASSESSEE SUO MOTU OFFERED DISALLOWANCE OF RS.6,39,310/ - , BEING 20% OF THE AMOUNT OF BOGUS PURCHASES, WHICH WAS ADDED BY THE ASSESSING OFFICER (AO) AND THE TRI BUNAL , AFTER CONSIDERING THE RELEVANT DECISIONS ON THIS ISSUE , CAME TO HOLD THAT THERE WA S NO SCOPE FOR ANY FURTHER INTERFERENCE IN AS MUCH AS THE AO SIMPLY ACCEP TED THE ASSESSEES CONTENTION OF DISALLOWANCE AT 20% OF THE AMOUNT OF BOGUS PURCHASES. SIMILA R I S THE POSITION FOR THE A.Y. 2010 - 11. FOR TH IS YEAR TOO , THE ASSESSEE OFFERED 20% DISALLOWANCE OF THE AMOUNT OF BOGUS PURCHASES WHICH W AS ACCEPTED BY THE AO. THE TRIBUNAL DID NOT INTERFERE WITH THE SAME. 4. ON GOING THROUGH THE FACTUAL MATRIX OF THIS C ASE, IT IS SEEN T HAT THE TRIBUNAL, ON CONSIDERATION OF ALL THE RELEVANT FACTS AND CIRCUMSTANCES , C A ME TO A POSITIVE CONCLUSION THAT THE PERCENTAGE OF GP RATE S AS APPLIED BY THE AO FOR BOTH THE YEARS WA S JUST AND FAIR. IN SUCH CIRCUMSTANCES, THE PROVISIONS OF SECTION 254(2) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) CANNOT BE INVOKED WITH AN ATTEMPT TO PERSUADE THE TRIBUNAL FROM CHANGING THE VIEW TAKEN IN THE M A NO S . 73 & 74 /P UN/20 19 YOGESH ASHOK LALWANI 3 ORDER PASSED U/S 254(1) OF THE ACT AND DIRECT APPLICATION OF A LOWER RATE O F GROSS PROFIT. P ROCEEDINGS UNDER SUB - SECTION (2) OF SECTION 254 OF THE ACT ARE AIMED AT RECTIFYING A MISTAKE APPARENT FROM THE RECORD AND NOT TO RE - ARGUE THE MATTER. IN VIEW OF THE FOREGOING FACTS, I UPHOLD THE ORDER PASSED BY THE TRIBUNAL. 5 . IN THE RES ULT, THE MISCELLANEOUS APPLICATION S ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH FEBR UARY, 2020 . SD/ - ( R.S.SYAL ) / VICE PRESIDENT PUNE ; DATED : 14 TH FEBRUARY , 2020 GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEAL S) - 7 , PUN E 4. THE PR. CIT - 6 , PUNE 5. , , SMC / DR SMC , ITAT, PUNE; 6. / GUARD FILE . // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR P RIVATE SECRETARY , / ITAT, PUNE M A NO S . 73 & 74 /P UN/20 19 YOGESH ASHOK LALWANI 4 DATE 1. DRAFT DICTATED ON 14 - 02 - 2020 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 14 - 0 2 - 2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8 . FILE SENT TO THE BENCH CLERK SR.PS 9 . DATE ON WHICH FILE GOES TO THE HEAD CLERK 10 . DATE ON WHICH FILE GOES TO THE A.R. 1 1 . DATE OF DISPATCH OF ORDER. *