ITO 20(3)(3), MUMBAI v. M/S SHARADBHAI J. SHAH, MUMBAI

ITA 5162/MUM/2019 | 2009-2010
Pronouncement Date: 08-03-2021 | Result: Dismissed

Appeal Details

RSA Number 516219914 RSA 2019
Assessee PAN AABFS3031N
Bench Mumbai
Appeal Number ITA 5162/MUM/2019
Duration Of Justice 1 year(s) 7 month(s)
Appellant ITO 20(3)(3), MUMBAI
Respondent M/S SHARADBHAI J. SHAH, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 08-03-2021
Appeal Filed By Department
Order Result Dismissed
Bench Allotted SMC
Tribunal Order Date 08-03-2021
Last Hearing Date 02-03-2021
First Hearing Date 02-03-2021
Assessment Year 2009-2010
Appeal Filed On 07-08-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC MUMBAI ! '# '$ BEFORE VIKAS AWASTHY JUDICIAL MEMBER & SHRI N.K.PRADHAN ACCOUNTANT MEMBER . 5162/ / 2019 (. . 2009-10 ) ITA NO.5162/MUM/2019(A.Y.2009-10) ITO -20(3)(3) 6 TH FLOOR ROOM NO.614 PIRAMAL CHAMBERS MUMBAI 400 012 ...... ) / APPELLANT VS. M/S. SHARADBHAI J. SHAH 149 MAULANA AZAD ROAD DUNCAN ROAD MUMBAI 400 012 PAN:AABFS3031N ..... !*/ RESPONDENT ASSESSEE BY : SHRI SHYAM SABOO REVENUE BY : SHRI SANJAY J. SETHI +* / DATE OF HEARING : 04/03/2021 -. +* / DATE OF PRONOUNCEMENT : 08/03/2021 '/ ORDER PER VIKAS AWASTHY J.M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST T HE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-32 MUMBAI ( IN SHORT THE CIT (A)) DATED 27/05/2019 FOR THE ASSESSMENT YEAR 2009-10. 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM THE RECORDS ARE: THE ASSESSEE IS A WHOLESALE TRADER OF TIN PLATES AND BLACK PLATE. THE ASSESSMENT IN THE CASE OF ASSESSEE FOR ASSESSMENT YEAR 2009-10 WAS REOPENED O N THE BASIS OF INFORMATION 2 . 5162/ / 2019 (. . 2009-10 ) ITA NO.5162/MUM/2019(A.Y.2009-10) RECEIVED BY THE DGIT (INV) MUMBAI FROM THE SALE T AX DEPARTMENT GOVERNMENT OF MAHARASHTRA THAT THE ASSESSEE HAS OBTAINED BOGUS PU RCHASE BILLS AGGREGATING TO RS.12 91 013/- FROM TWO HAWALA OPERATORS NAMELY: (I) M/S. MAIRU ENTERPRISES RS. 3 06 639/- (II) M/S. RAHUL TRADERS RS. 9 84 374/- SINCE THE ASSESSEE FAILED TO SUBSTANTIATE GENUIN ENESS OF THE PURCHASES AND THE SUPPLIERS THE ASSESSING OFFICER MADE ADDITION OF THE ENTIRE BOGUS PURCHASES. AGGRIEVED BY THE ASSESSMENT ORDER DATED 28/03/2014 THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) AFTER CONSIDERING TH E SUBMISSIONS OF THE ASSESSEE AND DOCUMENTS ON RECORD DELETED THE ENTIRE ADDITION QU A PURCHASES FROM M/S. MAIRU ENGTERPRISES AND RESTRICTED THE ADDITION TO 14% ON PURCHASES FROM M/S. RAHUL TRADERS. AGAINST THE FINDINGS OF CIT(A) THE REVEN UE IS IN APPEAL BEFORE THE TRIBUNAL. 3. SHRI SANJAY J. SETHI REPRESENTING THE DEPART MENT VEHEMENTLY SUPPORTING THE ASSESSMENT ORDER SUBMITTED THAT ASSESSING OFFICER H AD MADE ADDITION OF THE ENTIRE BOGUS PURCHASES AS THE ASSESSEE FAILED TO DISCHARGE HIS ONUS IN PROVING GENUINENESS OF THE PURCHASES FROM DECLARED HAWALA OPERATORS. T HE CIT(A) HAS ERRED IN DELETING ENTIRE ADDITION IN RESPECT OF BOGUS PURCHASES FROM M/S. MAIRU ENTERPRISES AND RESTRICTING ADDITION @ 14% FROM M/S. RAHUL TRADERS. 4. WE HAVE HEARD THE SUBMISSIONS MADE BY LD. DEPAR TMENTAL REPRESENTATIVE AND HAVE EXAMINED THE ORDERS OF AUTHORITIES BELOW. TH E ASSESSEE FURNISHED NEW ADDRESS OF ONE OF THE SUSPICIOUS DEALER I.E. M/S. MAIRU ENTERPRISES AND ALSO FURNISHED DOCUMENTS TO SUBSTANTIATE TRAIL OF GOODS. HOWEVER THE ASSESSING OFFICER FAILED TO ISSUE NOTICE TO THE SAID SUPPLIER UNDER SECTION 133 (6) OF THE ACT. AS REGARDS THE OTHER SUPPLIER THE ASSESSEE FAIRLY ADMITTED THAT NO DO CUMENT CAN BE FURNISHED TO DISCHARGE ONUS TO PROVE GENUINENESS. SINCE THE A SSESSING OFFICER HAD ACCEPTED THE TURNOVER DECLARED BY THE ASSESSEE THE THE CIT(A) ESTIMATED THE PROFIT ELEMENT EMBEDDED IN BOGUS PURCHASE TRANSACTIONS BY ESTIMATI NG PROFIT @ 14% ON BOGUS 3 . 5162/ / 2019 (. . 2009-10 ) ITA NO.5162/MUM/2019(A.Y.2009-10) PURCHASES FROM M/S.RAHUL TRADERS. WE FIND THAT TH E ORDER OF CIT(A) IS WELL REASONED AND FAIR. WE CONCUR WITH THE SAME. THE AP PEAL OF THE REVENUE IS WITHOUT ANY MERIT. HENCE THE SAME IS DISMISSED AND THE IM PUGNED ORDER IS UPHELD. 5. IN THE RESULT APPEAL BY THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY T HE 8 TH DAY OF MARCH 2021. SD/- SD/- (N.K.PRADHAN) (VIKAS AWAST HY) '# / ACCOUNTANT MEMBER / JUDICIAL MEMBER / MUMBAI 0/ DATED 08/03/2021 VM SR. PS (O/S) !*12'.* COPY OF THE ORDER FORWARDED TO : 1. ) / THE APPELLANT 2. !* / THE RESPONDENT. 3. 3* ( ) / THE CIT(A)- 4. 3* CIT 5. 45!* . . . / DR ITAT MUMBAI 6. 56789 / GUARD FILE. BY ORDER //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT MUMBAI