ITO-20(2)(1), MUMBAI v. MUKESH TIKAMCHAND JAIN, MUMBAI

ITA 5213/MUM/2019 | 2009-2010
Pronouncement Date: 08-03-2021 | Result: Dismissed

Appeal Details

RSA Number 521319914 RSA 2019
Assessee PAN AAIPJ0037E
Bench Mumbai
Appeal Number ITA 5213/MUM/2019
Duration Of Justice 1 year(s) 7 month(s)
Appellant ITO-20(2)(1), MUMBAI
Respondent MUKESH TIKAMCHAND JAIN, 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 04-03-2021
First Hearing Date 04-03-2021
Assessment Year 2009-2010
Appeal Filed On 08-08-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC MUMBAI ! '# '$ BEFORE VIKAS AWASTHY JUDICIAL MEMBER & SHRI N.K.PRADHAN ACCOUNTANT MEMBER . 5213/ / 2019 (. . 2009-10 ) ITA NO.5213/MUM/2019(A.Y.2009-10) ITO -20(2)(1) ROOM NO.216 2 ND FLOOR PIRAMAL CHAMBERS LALBAUG MUMBAI 400 012 ...... ) / APPELLANT VS. MUKESH TIKAMCHAND JAIN B/802 PRATIKSHA TOWER R.B. NIMKAR MARG MUMBAI CENTRAL MUMBAI 400 008 PAN:AAIPJ0037E ..... !*/ RESPONDENT ASSESSEE BY : NONE 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 TH E ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-32 MUMBAI (IN SHORT THE CIT( A)) DATED 31/05/2019 FOR THE ASSESSMENT YEAR 2009-10. 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM T HE RECORDS ARE: THE ASSESSEE IS A DEALER IN FERROUS AND NON-FERROUS METALS. THE AS SESSMENT IN THE CASE OF ASSESSEE FOR ASSESSMENT YEAR 2009-10 WAS REOPENED ON THE BAS IS OF INFORMATION RECEIVED BY 2 . 5213/ / 2019 (. . 2009-10 ) ITA NO.5213/MUM/2019(A.Y.2009-10) THE DGIT (INV) MUMBAI FROM SALE TAX DEPARTMENT G OVERNMENT OF MAHARASHTRA THAT THE ASSESSEE HAS OBTAINED BOGUS PURCHASE ENTRI ES AGGREGATING TO RS.82 73 833/- FROM TWO HAWALA OPERATORS. SINCE THE ASSESSEE FAI LED TO SUBSTANTIATE GENUINENESS OF THE PURCHASES AND THE SUPPLIERS THE ASSESSING O FFICER FOLLOWING THE DECISION IN THE CASE OF SIMIT P. SHETH 356 ITR 451(GUJ) MADE AN E STIMATED ADDITION OF 12.5% OF TOTAL BOGUS PURCHASES. AGGRIEVED BY THE ASSESSMENT ORDER DATED 30/03/2015 THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A ) AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE AND THE G.P DECLARED BY ASSESSEE M ODIFIED THE ASSESSMENT ORDER AND RESTRICTED THE ADDITION TO 5% OF THE BOGUS PUR CHASES. AGAINST THE FINDINGS OF CIT(A) THE REVENUE IS IN APPEAL BEFORE THE TRIBUNA L. 3. SHRI SANJAY J. SETHI REPRESENTING THE DEPART MENT VEHEMENTLY SUPPORTING THE ASSESSMENT ORDER SUBMITTED THAT ASSESSING OFFICER H AD ESTIMATED G.P AT 12.5% ON BOGUS PURCHASES IN LINE WITH THE DECISION OF HON'BL E GUJARAT HIGH COURT IN THE CASE OF SIMIT P. SHETH (SUPRA). THE CIT(A) HAS FURTHER RE DUCED THE G.P RATE ON BOGUS PURCHASES TO 5% WHICH IS VERY MUCH ON THE LOWER SI DE. THE LD. DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE ASSESSEE HAS FAIL ED TO DISCHARGE HIS ONUS IN PROVING THE GENUINENESS OF PURCHASES AND HENCE DE SERVES NO LENIENCY. THE LD. DEPARTMENTAL REPRESENTATIVE FURTHER CONTENDED THAT THOUGH THE TAX EFFECT INVOLVED IN THE APPEAL IS LESS THAN THE MONETARY LIMIT SP ECIFIED VIDE CBDT CIRCULAR NO. 17/2019 DATED 08-08-2019 BUT THE CASE OF ASSES SEE FALLS UNDER EXCEPTIONS SPECIFIED IN PARA 10(E) OF CIRCULAR NO. 03 OF 20 18 DATED 11/07/2018 AND AMENDED ON 20/08/2018 . 4. THE NOTICE OF HEARING OF APPEAL FOR TODAY WAS SENT TO THE ASSESSEE THROUGH RPAD. THE NOTICE HAS BEEN DULY SERVED AS IS EVIDEN T FROM THE ACKNOWLEDGMENT CARD PLACED ON THE FILE. DESPITE SERVICE OF NOTICE NE ITHER THE ASSESSEE NOR ANY 3 . 5213/ / 2019 (. . 2009-10 ) ITA NO.5213/MUM/2019(A.Y.2009-10) AUTHORIZED REPRESENTATIVE OF THE ASSESSEE HAS APPE ARED. IT SEEMS THE ASSESSEE IS NOT INTERESTED IN PURSUING THE APPEAL. HENCE THIS APPEAL IS TAKEN UP FOR HEARING WITH THE ASSISTANCE OF LD. DEPARTMENTAL REPRESENTATIVE AND MATERIAL AVAILABLE ON RECORD. 5. WE HAVE HEARD THE SUBMISSIONS MADE BY LD. DEPART MENTAL REPRESENTATIVE AND HAVE EXAMINED THE ORDERS OF AUTHORITIES BELOW. UND ISPUTEDLY THE ASSESSEE HAS INDULGED IN OBTAINING BOGUS PURCHASE BILLS FROM SU SPICIOUS DEALERS. SINCE THE REVENUE HAS ACCEPTED THE TURNOVER DECLARED BY THE A SSESSEE THE ASSESSING OFFICER HAS ESTIMATED THE PROFIT EMBEDDED IN BOGUS PURCHASE TRANSACTIONS. THE ASSESSING OFFICER HAS ESTIMATED PROFIT @ 12.5%. THE CIT(A) CONSIDERING THE NATURE OF ASSESSEES BUSINESS HAS REDUCED THE ADDITION TO 5% OF BOGUS PURCHASES. IN TRADING OF FERROUS AND NON-FERROUS METALS AVERAGE G.P IS BETWEEN 5.0% TO 7.5%. AS PER AUDIT REPORT THE ASSESSEE HAS DECLARED G.P OF 5.25% . WE FIND THAT THE ORDER OF CIT(A) IS FAIR AND REASONABLE HENCE WARRANTS NO INTERFER ENCE. THE APPEAL OF THE REVENUE IS WITHOUT ANY MERIT ERGO THE SAME IS DISMISSED AND THE IMPUGNED ORDER IS UPHELD. 6. IN THE RESULT APPEAL BY THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY TH E 08 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) 4 . 5213/ / 2019 (. . 2009-10 ) ITA NO.5213/MUM/2019(A.Y.2009-10) !*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