SHRI. LATE GUNVANTRAI C DOSHI, Mumbai v. CIT(A)-56, Mumbai

ITA 2484/MUM/2019 | 2010-2011
Pronouncement Date: 26-03-2021 | Result: Partly Allowed

Appeal Details

RSA Number 248419914 RSA 2019
Assessee PAN AABPD1054E
Bench Mumbai
Appeal Number ITA 2484/MUM/2019
Duration Of Justice 1 year(s) 11 month(s) 3 day(s)
Appellant SHRI. LATE GUNVANTRAI C DOSHI, Mumbai
Respondent CIT(A)-56, Mumbai
Appeal Type Income Tax Appeal
Pronouncement Date 26-03-2021
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted SMC
Tribunal Order Date 26-03-2021
Assessment Year 2010-2011
Appeal Filed On 22-04-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC MUMBAI BEFORE VIKAS AWASTHY JUDICIAL MEMBER . 2483 / / 20 19 ( . . 2009 - 10 ) ITA NO. 2483 /MUM/20 19 (A.Y. 2009 - 10 ) . 2484 / / 20 19 ( . . 2010 - 11 ) ITA NO. 2484 /MUM/20 19 (A.Y. 2010 - 11 ) SHRI LATE GUNVANTRAI C DOSHI B - 16 RAJ MAYUR S.L.ROAD MULUND (WEST) MUMBAI 400 080. PAN:AABPD 1054E ...... / APPELLANT VS. COMMISSIONER OF INCOME TAX (APPEALS) - 56 R.NO.3101 3 RD FLOOR B - WING MITTAL COURT NARIMAN POINT MUMBAI - 400 021. ..... / RESPONDENT A SSESSEE BY : NONE REVENUE BY : SHRI SANJAY SETHI / DATE OF HEARING : 31/12/2020 / DATE OF PRONOUNCEMENT : 26 /03/2021 / ORDER PER VIKAS AWASTHY J.M: THESE TWO APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX( APPEALS) - 56 MUMBAI *IN SHORT THE CIT(A)+ FOR ASSESSMENT YEAR 2009 - 10 AND 2010 - 11 RESPECTIVELY. BOTH THE IMPUGNED ORDERS ARE OF EVEN DATE I.E. 05/05/2015. SINCE THE GROUNDS RAISED IN BOTH THE APPEALS ARE IDENTICAL THESE APPEALS ARE TAKEN UP TOGETHER FOR ADJUDICATION AND ARE DISPOSED OF BY THIS COMBINED ORDER. 2 ITA NO.2483/MUM/2019(A.Y.2009 - 10) ITA NO.2484/MUM/2019(A.Y.2010 - 11) 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM RECORDS ARE: THE ASSESSEE IS A MANUFACTURER AND RESELLER OF MACHINERY AND MACHINERY PARTS. ON THE BASIS OF INFORMATION R ECEIVED FROM DGIT(INVN.) MUMBAI THE ASSESSMENT IN THE CASE OF ASSESSEE FOR ASSESSMENT YEAR 2009 - 10 AND 2010 - 11 WERE REOPENED. AS PER THE INFORMATION THE ASSESSEE HAD OBTAINED BOGUS PURCHASE BILLS FOR RS.8 45 983/ - IN ASSESSMENT YEAR 2009 - 10 AND FOR RS.2 98 028/ - IN ASSESSMENT YE AR 2010 - 11 FROM VARIOUS SUSPICIOUS DEALERS DECLARED AS HAWALA OPERATORS. DURING THE COURSE OF ASSESSMENT PROCEEDING THE ASSESSEE PRODUCED LEDGER ACCOUNTS AND PURCHASE BILLS. THE NOTICES ISSUED BY THE ASSESSING OFFICER UNDER SECTION 133(6) OF THE INCOME TAX ACT 1961 (IN SHORT THE ACT) ON THE ADDRESSES FURNISHED BY THE ASSESSEE WERE RECEIVED BACK UNSERVED WITH REMARKS NOT KNOWN. IN THE ABSENCE OF ANY COGENT EVIDENCE AND CONFIRMATIONS FROM THE SUPPLIERS THE ASSESSING OFFICER MADE ADDITION OF THE ENTIR E BOGUS PURCHASES IN BOTH THE IMPUGNED ASSESSMENT YEARS. AGGRIEVED AGAINST THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) R.W.S. 147 OF THE ACT THE ASSESSEE FILED APPEALS FOR THE RESPECTIVE ASSESSMENT YEARS BEFORE THE CIT(A). IN THE FIRST APPELLATE PR OCEEDINGS THE CIT(A) AFTER CONSIDERING THE FACTS OF THE CASE AND THE GROSS PROFIT (GP) DECLARED BY THE ASSESSEE RESTRICTED THE ADDITION TO 12.5% OF TOTAL BOGUS PURCHASES. IDENTICAL ORDERS HAVE BEEN PASSED BY THE CIT(A) FOR ASSESSMENT YEARS 2009 - 10 AND 20 10 - 11. STILL AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL FOR BOTH THE IMPUGNED ASSESSMENT YEARS ASSAILING THE PROFIT ESTIMATED BY THE CIT(A) ON BOGUS PURCHASES. 3. SHRI. SANJAY SETHI REPRESENTING THE DEPARTMENT VEHEMENTLY DEFENDED THE IMPUGN ED ORDERS FOR THE RESPECTIVE ASSESSMENT YEARS AND PRAYED FOR DISMISSING THE APPEALS FIELD BY THE ASSESSEE. THE LD. DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE CIT(A) HAS PASSED A VERY REASONED AND BALANCED ORDER AFTER CONSIDERING THE FACTS AND VARIOUS DECISIONS AND HENCE SHOULD BE SUSTAINED. 3 ITA NO.2483/MUM/2019(A.Y.2009 - 10) ITA NO.2484/MUM/2019(A.Y.2010 - 11) 4. SUBMISSIONS MADE BY LD. DEPARTMENTAL REPRESENTATIVE HEARD ORDERS OF AUTHORITIES BELOW EXAMINED. THE ASSESSEE HAS ALLEGEDLY OBTAINED BOGUS PURCHASE BILLS FROM SUSPICIOUS DEALERS. THE ASSESSEE HAS FAILED TO DISC HARGE HIS ONUS IN PROVING GENUINE OF THE PURCHASES AND THE DEALERS. THE ASSESSEE COULD NEITHER PRODUCE THE DEALERS NOR COULD FURNISH CONFIRMATIONS FROM THEM. EVEN THE NOTICES SENT TO THE DEALERS REMAIN UNSERVED. AT THE SAME TIME I FIND THAT ASSESSING OF FICER HAS ACCEPTED THE TURNOVER DECLARED BY THE ASSESSEE. WITHOUT PURCHASES/INPUTS THERE CANNOT BE SALES. THEREFORE ENTIRE ALLEGED BOGUS PURCHASES CANNOT BE DISALLOWED. THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF PCIT VS. PARAMSHAKTI DISTRIBUTOR S PVT. LTD. IN INCOME TAX APPEAL NO. 413 OF 2017 DECIDED ON 15/7/2019 HAS HELD THAT ONLY PROFIT ELEMENT EMBEDDED IN THE BOGUS TRANSACTIONS HAS TO BE BROUGHT TO TAX. THE CIT(A) HAS RESTRICTED THE ADDITION TO 12.5% AS AGAINST THE G.P OF 6.08% IN ASSESSMENT YE AR 2009 - 10 AND 6.14% IN ASSESSMENT YEAR 2010 - 11 DECLARED BY THE ASSESSEE. I AM OF CONSIDERED VIEW THAT GP ESTIMATED BY THE CIT(A) IS ON HIGHER SIDE. I DEEM IT JUST AND APPROPRIATE TO RESTRICT GP AT 6.5% OF THE BOGUS PURCHASES IN EACH OF THE IMPUGNED ASSE SSMENT YEARS. THE IMPUGNED ORDERS ARE ACCORDINGLY MODIFIED AND APPEALS BY THE ASSESSEE ARE PARTLY ALLOWED. 5. IN THE RESULT APPEAL BY THE ASSESSEE FOR ASSESSMENT YEAR 2009 - 10 AND 2010 - 11 ARE PARTLY ACCEPTED IN THE TERMS AFORESAID. ORDER PRONOUNCED IN THE OPEN COURT ON F RIDAY THE 2 6 TH DAY OF MARCH 2021. SD/ - (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI / DATED 2 6 /0 3 /2021 VM SR. PS (O/S) 4 ITA NO.2483/MUM/2019(A.Y.2009 - 10) ITA NO.2484/MUM/2019(A.Y.2010 - 11) 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./ASSTT. REGISTRAR) ITAT MUMBAI