M/S SAROJ PRINTS ARTS, Mumbai v. ITO 31 (3)(3), Mumbai

ITA 1390/MUM/2019 | 2010-2011
Pronouncement Date: 18-03-2021 | Result: Partly Allowed

Appeal Details

RSA Number 139019914 RSA 2019
Assessee PAN ABLFS2539L
Bench Mumbai
Appeal Number ITA 1390/MUM/2019
Duration Of Justice 2 year(s) 11 day(s)
Appellant M/S SAROJ PRINTS ARTS, Mumbai
Respondent ITO 31 (3)(3), Mumbai
Appeal Type Income Tax Appeal
Pronouncement Date 18-03-2021
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted SMC
Tribunal Order Date 18-03-2021
Last Hearing Date 17-12-2020
First Hearing Date 17-12-2020
Assessment Year 2010-2011
Appeal Filed On 08-03-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC MUMBAI BEFORE SHRI SAKTIJIT DEY (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 1390/MUM/2019 ASSESSMENT YEAR: 2010-11 M/S SAROJ PRINTS ARTS 104-B SUMIT SAMARTH ARCADE AAREY ROAD GOREGAON (W) MUMBAI - 400 062. VS. INCOME TAX OFFICER-31(3)(3) C-13 BANDRA MUMBAI-400 051. PAN NO. ABLFS 2539 L APPELLANT RESPONDENT ASSESSEE BY : MR. PIYUSH CHHAJED AR REVENUE BY : MS. SMITA VERMA DR DATE OF HEARING : 16/02/2021 DATE OF PRONOUNCEMENT : 18/03/2021 ORDER PER N.K. PRADHAN A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE. THE RELEVA NT ASSESSMENT YEAR IS 2010-11. THE APPEAL IS DIRECTED AGAINST THE ORDER O F THE COMMISSIONER OF INCOME TAX (APPEALS)-48 MUMBAI [IN SHORT CIT(A)] AND ARISES OUT OF THE ASSESSMENT COMPLETED U/S 144 R.W.S. 147 OF THE INCO ME TAX ACT 1961 (THE ACT). 2. BEFORE US THE LD. COUNSEL FOR THE ASSESSEE SUBM ITS THAT HE WOULD NOT LIKE TO PRESS THE 2 ND AND 3 RD GROUND OF APPEAL. CONSIDERING THE MATERIALS AVAILA BLE ON RECORD AND THE ABOVE SUBMISSION OF THE LD. COUNS EL WE DISMISS THE 2 ND AND M/S SAROJ PRINTS ARTS ITA NO. 1390/M/2019 2 3 RD GROUND OF APPEAL AS NOT PRESSED. WE PROCEED TO ADJ UDICATE THE 1 ST AND 4 TH GROUNDS OF APPEAL WHICH READ AS UNDER : 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE LD. CIT(A) ERRED IN CONFIRMING ASSESSMENT ORDER PASSED U/S 144 R.W.S. 1 47 WITH PREJUDICE MIND WITHOUT CONSIDERING THE SUBMISSIONS MADE BY THE APPELLANT F IRM BEFORE LD. AO. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE LD. CIT(A) ERRED IN CONFIRMING 100% ADDITION OF PURCHASE AS THE BOGUS P URCHASES FROM M/S MAYUR PAPER. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT T HE ASSESSEE FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR (AY) 2010-11 ON 24.0 9.2010 DECLARING TOTAL INCOME OF RS.1 48 970/-. ON RECEIPT OF INFORMATION FROM THE SALES TAX DEPARTMENT GOVERNMENT OF MAHARASHTRA THAT THE ASSE SSEE HAD OBTAINED BOGUS PURCHASE BILLS OF RS.2 55 019/- FROM MAYUR PAPER T HE ASSESSING OFFICER (AO) ISSUED NOTICE U/S 148 OF THE ACT FOR REOPENING THE ASSESSMENT. IT IS MENTIONED BY THE AO THAT ON 05.11.2015 THE ASSESSEE FURNISHE D TAX AUDIT REPORT AND AUDITED FINANCIALS. LATER ON 24.11.2015 THE ASSESS EE FILED OBJECTION TO THE REOPENING OF ASSESSMENT WHICH WAS DISPOSED BY THE A O ON 07.12.2015. IN RESPONSE TO THE QUERY RAISED BY THE AO VIDE NOTICE U/S 142(1) R.W.S. 144 DATED 25.01.2016 THE ASSESSEE FILED ON 02.02.2016 COPIES OF INVOICE AND LEDGER ACCOUNT OF THE ABOVE PARTY. HOWEVER AS RECORDED BY THE AO THE ASSESSEE FAILED TO FILE THE OTHER DETAILS CALLED BY HIM. CONSIDERIN G THE FACTS AND CIRCUMSTANCES OF THE CASE THE AO MADE AN ADDITION OF THE FULL AM OUNT OF RS.2 55 018/-. 4. AGGRIEVED BY THE ORDER OF THE AO THE ASSESSEE F ILED AN APPEAL BEFORE THE LD. CIT(A). DURING THE COURSE OF HEARING BEFORE HIM THE ASSESSEE ARGUED THAT M/S SAROJ PRINTS ARTS ITA NO. 1390/M/2019 3 THE TOTAL PURCHASES FROM THE ABOVE PARTY IS RS.1 08 707/- AND NOT RS.2 55 018/- . THE LD. CIT(A) DIRECTED THE AO TO VERIFY THE ACTU AL AMOUNT OF PURCHASES FROM THE ABOVE PARTY AND ACCORDINGLY ADOPT THE CORRECT F IGURE. 5. BEFORE US THE LD. COUNSEL FOR THE ASSESSEE SUBM ITS THAT CONSIDERING THE NATURE OF THE BUSINESS OF THE ASSESSEE ONLY THE PR OFIT EMBEDDED IN THE DISPUTED PURCHASES CAN BE BROUGHT TO TAX BY ESTIMATION. ON T HE OTHER HAND THE LD. DR SUPPORTS THE ORDER PASSED BY THE LD. CIT(A). 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIALS ON RECORD. THE LD. CIT(A) HAS RIGHTLY DIRECTED THE AO TO VERIFY THE ACTUAL AMOUNT OF PURCHASES FROM M/S MAYUR PAPER AND ACCORD INGLY ADOPT THE CORRECT FIGURE. WE FIND THAT THE NATURE OF BUSINESS OF THE ASSESSEE IS PRINTING PRESS. HAVING CONSIDERED THE NATURE OF BUSINESS OF THE ASS ESSEE AND THE FACTS AND CIRCUMSTANCES OF THE CASE WE DIRECT THE AO TO VERI FY THE ACTUAL AMOUNT OF PURCHASES FROM M/S MAYUR PAPER AND ESTIMATE THE PRO FIT @ 6% ON THE DISPUTED PURCHASES TO BRING TO TAX THE PROFIT EMBED DED IN SUCH PURCHASES. 7. IN THE RESULT THE APPEAL IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 18/03/2021. SD/- SD/- (SAKTIJIT DEY) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED: 18/03/2021 RAHUL SHARMA SR. P.S. M/S SAROJ PRINTS ARTS ITA NO. 1390/M/2019 4 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR ITAT MUMBAI 6. GUARD FILE. BY ORDER //TRUE COPY// (DY./ASSISTANT REGISTRAR) ITAT MUMBAI