ITO WARD-6(3)(2), MUMBAI v. M/S. IVP. LTD. , MUMBAI

ITA 5220/MUM/2019 | 2011-2012
Pronouncement Date: 12-03-2021 | Result: Dismissed

Appeal Details

RSA Number 522019914 RSA 2019
Assessee PAN AAACI0992A
Bench Mumbai
Appeal Number ITA 5220/MUM/2019
Duration Of Justice 1 year(s) 7 month(s) 3 day(s)
Appellant ITO WARD-6(3)(2), MUMBAI
Respondent M/S. IVP. LTD. , MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 12-03-2021
Appeal Filed By Department
Order Result Dismissed
Bench Allotted SMC
Tribunal Order Date 12-03-2021
Last Hearing Date 08-03-2021
First Hearing Date 08-03-2021
Assessment Year 2011-2012
Appeal Filed On 08-08-2019
Judgment Text
1 ITA NO.5220 & 5221/MUM/2019 M/S. IVP LTD. IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC MUMBAI BEFORE SHRI VIKAS AWASTHY (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NOS. 5220 & 5221/MUM/2019 ASSESSMENT YEARS: 2010-11 & 2011-12 ITO WARD-6(3)(2) ROOM NO.503 5 TH FLOOR AAYKAR BHAWAN M.K.ROAD MUMBAI-400 020 VS. M/S. IVP LTD. IVP BUILDING S.N.REDIJ MARG REAY ROAD MUMBAI-400 033 PAN NO. AAACI0992A APPELLANT RESPONDENT REVENUE BY : MS. SMITA VERMA DR ASSESSEE BY : MS. KRUPA GANDHI AR DATE OF HEARING : 08/03/2021 DATE OF PRONOUNCEMENT : 12/03/2021 ORDER PER N.K. PRADHAN A.M. THE CAPTIONED APPEALS FILED BY THE REVENUE ARE DIRE CTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1 2 MUMBAI [IN SHORT CIT(A)] AND ARISE OUT OF THE ASSESSMENT COMPLETED U/S 143(3) R.W.S. 147 OF THE INCOME TAX ACT 1961 (THE ACT). FACTS BEING IDENT ICAL WE BEGIN WITH AY 2010- 11. 2. BRIEFLY STATED THAT THE FACTS OF THE CASE ARE T HAT THE ASSESSEE-COMPANY FILED ITS RETURN OF INCOME FOR THE AY 2010-11 ON 23.09.20 10 DECLARING TOTAL INCOME 2 ITA NO.5220 & 5221/MUM/2019 M/S. IVP LTD. AT RS.1 66 379/- . ON RECEIPT OF INFORMATION FROM T HE SALES TAX DEPARTMENT GOVERNMENT OF MAHARASHTRA THAT THE ASSESSEE HAD OBT AINED BOGUS PURCHASE BILLS OF RS.9 68 500/- FROM INTERNATIONAL TRADE AGE NCY THE ASSESSING OFFICER (AO) ISSUED NOTICE U/S.148 FOR REOPENING THE ASSESS MENT. IN RESPONSE TO IT THE ASSESSEE FILED A REPLY DATED 24.04.2015 STATING THA T THE RETURN FILED ON 23.09.2010 BE TREATED AS RETURN FILED IN RESPONSE T O NOTICE U/S 148 OF THE ACT. DURING THE COURSE OF RE-ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER (AO) ISSUED NOTICE U/S.133(6) TO INTERNATIONAL TRADE AGE NCY TO VERIFY THE GENUINENESS OF THE PURCHASES. HOWEVER THAT NOTICE WAS RETURNED UN-SERVED BY THE POSTAL AUTHORITIES. ALSO DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE AO ASKED THE ASSESSE TO SUBMIT THE PURCHASE DETAILS BILLS AND LEDGER COPY OF SAID CONCERN SALES TAX RETURN FILED BY THE ABOVE P ARTY AND DOCUMENTARY EVIDENCE FOR THE TRANSACTIONS. THE ASSESSEE FILED PURCHASE DETAILS LEDGER ACCOUNT OF THE SAID PARTIES BILLS AND BANK ACCOUNT . AS RECORDED BY THE AO THE ASSESSEE FAILED TO FILE DOCUMENTARY EVIDENCE SUCH A S LORRY RECEIPTS RECEIPT OF GOODS IN GODOWN SUPPORTED BY DAILY STOCK REGISTER EVIDENCE FOR PAYMENT OF OCTROI AND CESS IN THE CHECK POST. CONSIDERING THE ABOVE FACTS THE AO MADE AN ADDITI ON OF THE FULL AMOUNT OF RS.9 68 500/-. 3. IN APPEAL THE LD.CIT(A) VIDE ORDER DATED 03.04.2019 HELD THAT THE SAVINGS ON ACCOUNT OF VAT AND OTHER INCIDENTAL CHARGES MADE BY THE ASSESSEE ON THE SAID BOGUS PURCHASES CAN BE BROUGHT TO TAX AS ADDIT IONAL PROFIT. CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE HE DIRECTED TH E AO TO RESTRICT THE 3 ITA NO.5220 & 5221/MUM/2019 M/S. IVP LTD. DISALLOWANCES TO 12.5% OF THE DISPUTED PURCHASES OF RS.9 68 500/- WHICH COMES TO RS. 1 21 063/-. 4. BEFORE US THE LD. DR RELIES ON THE ORDER OF THE AO WHEREAS THE LD. COUNSEL FOR THE ASSESSEE SUPPORTS THE ORDER PASSED BY THE L D.CIT(A). 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIALS AVAILABLE ON RECORD. THE REASONS FOR OUR DECISIONS ARE GIVEN BELOW. AS MENTIONED EARLIER THE NOTICES ISSUED BY THE AO U/S. 133(6) TO M/S. INTERNATIONAL TRADING AGENCY WAS RETURNED UN-SERVED BY THE POSTAL AUTHORITIES. AS RECORDED BY THE AO THE ASSESSEE F ILED BEFORE HIM VIDE LETTER DATED 16.09.2015 PURCHASE DETAILS LEDGER ACCOUNT OF THE SAID PARTY BILLS AND BANK ACCOUNT. HOWEVER THE ASSESSEE COULD NOT FILE BEFORE THE AO DOCUMENTARY EVIDENCE SUCH AS LORRY RECEIPTS RECEIPT OF GOODS I N GODOWN SUPPORTED BY DAILY STOCK REGISTER EVIDENCE FOR PAYMENT OF OCTROI AND CESS IN THE CHECK POST. IN SUCH A SITUATION ONLY THE PROFIT EMBEDDED IN S UCH DISPUTED PURCHASES CAN BE BROUGHT TO TAX. THE NATURE OF BUSINESS OF TH E ASSESSEE IS MANUFACTURING AND TRADING OF FOUNDRY CHEMICALS. CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD.CIT(A) HAS RIGHTLY RESTRICTED THE DISALLOWANCES MADE BY THE AO TO 12.5% OF SUCH DISPUTED PURCHASES WHICH COMES TO RS.1 21 063/-. WE AFFIRM THE ORDER OF THE LD.CIT(A). FACTS BEING IDENTICAL OUR DECISION FOR AY 2010-11 APPLIES MUTATIS- MUTANDIS TO AY 2011-12. 4 ITA NO.5220 & 5221/MUM/2019 M/S. IVP LTD. 6. IN THE RESULT THE APPEALS FILED BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 12/03/2021 SD/- SD/- (VIKAS AWASTHY) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED: 12/03/2021 THIRUMALESH SR. P.S. 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