GANPATRAJ NEMAL JAIN, MUMBAI v. ITO 19 (1)(3), MUMBAI

ITA 5377/MUM/2018 | 2009-2010
Pronouncement Date: 13-11-2019 | Result: Dismissed

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Appeal Details

RSA Number 537719914 RSA 2018
Assessee PAN AFNPJ0762Q
Bench Mumbai
Appeal Number ITA 5377/MUM/2018
Duration Of Justice 1 year(s) 1 month(s) 25 day(s)
Appellant GANPATRAJ NEMAL JAIN, MUMBAI
Respondent ITO 19 (1)(3), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 13-11-2019
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted SMC
Tribunal Order Date 13-11-2019
Last Hearing Date 09-10-2019
First Hearing Date 09-10-2019
Assessment Year 2009-2010
Appeal Filed On 18-09-2018
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH MUMBAI BEFORE SHRI R.C. SHARMA ACCOUNTANT MEMBER ./ I.T.A. NO. 53 77 / MUM /201 8 ( / ASSESSMENT YEAR S : 20 09 - 1 0 ) GANPATRAJ NEMAL JAIN 10/1 BHANDARI STREET 1 ST KUMBHARWADA MUMBAI. / VS. ITO 19(1)(3) MUMBAI ./ ./ PAN/GIR NO. : AFNPJ0762Q ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI S.L. JAIN AR / RESPONDENT BY : SHRI AKTHAR H ANSARI DR / DATE OF HEARING 06 /11 /2019 / DATE OF PRONOUNCEMENT 13 /11 /2019 / O R D E R PER R.C. SHARMA(A.M.) THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) FOR THE A.Y 20 09 - 1 0 IN THE MATTER OF ORDER PASSED U/S 143(3) R.W.S 147 OF THE IT ACT. 2. IN THIS APPEAL THE ASSESSEE IS AGGRIEVED FOR THE ADDITION OF 12.5% MADE BY THE A.O IN RESPECT OF ALLEGED BOGUS PURCHASES AND ALSO CHALLENGED VALIDITY OF REOPENING. ITA NO S . 53 77 / /MUM/2018. GANPATRAJ NEMAL JAIN MUMBAI . - 2 - 3. I HAVE CONSIDERED THE RIVAL CONTENTIONS AND I FOUND THAT I N THIS CASE THE RETURN OF INCOME FOR THE A.Y 2009 - 10 WAS FILED ON 04.09.2009 DECLARING TOTAL INCOME OF RS. 1 91 410/ - . THE R ETURN WAS PROCESSED U/S 143(1) OF THE ACT. SUBSEQUENTLY THE AO RECEIVED INFORMATION FROM THE DGIT (INV) MUMBAI WHO IN TURN RECEIVED INFORMATION FROM THE SALES TAX DEPARTMENT MUMBAI ABOUT SOME HAWALA ENTRY PROVIDERS. THE INFORMATION WAS THAT THE SALES TAX DEPARTMENT HAS EXERCISED DUE DILIGENCE WHICH REVEALED THAT THE ASSESSEE IS INVOLVED IN TAKING ACCOMMODATION ENTRIES OF BOGUS PURCHASES FROM TEN PARTIES AMOUNTING TO RS. 63 35 118/ - . 4. AFTER MAKING FULL ENQUIRIES THE AO REACH ED TO THE CONCLUSION THAT ASSESSEE HAS TAKEN ACCOMMODATION BILL FOR PURCHASES WITHOUT HAVING DELIVERY. HE COMPUTED PROFIT ELEMENT ON SUCH PURCHASE AT 12.5% AND ADDED A SUM OF RS. 7 91 890/ - IN ASSESSEES INCOME. BY THE IMPUGNED ORDER ITA NO S . 53 77 / /MUM/2018. GANPATRAJ NEMAL JAIN MUMBAI . - 3 - THE CIT(A) FURTHER G IVEN RELIEF TO THE EXTENT OF GROSS PROFIT ALREADY DECLARED BY THE ASSESSEE ON SUCH BOGUS TRANSACTIONS. THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 5. I HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND THAT ON THE BASIS OF PROPER INFORMATION FROM DGIT THE A.O RECORDED THE REASONS TO BELIEVE THAT INCOME TO THE TUNE OF BOGUS PURCHASES HAS ESCAPED ASSESSMENT. THEREAFTER GIVING DUE OPPORTUNITY TO THE ASSESSEE THE AO REOPENED ASSESSMENT BY ISSUE OF NOTICE U/S 148 OF THE ACT. I DO NOT F IND ANY INFIRMITY IN THE OR DER OF REOPENING THE ASSESSMENT. SO FAR AS MERIT OF ADDITION IS CONFIRMED I FOUND THAT BOTH AO AND CIT(A) HAD DEALT WITH THE ISSUE AND AFTER APPLYING VARIOUS JUDICIAL PRONOUNCEMENTS THE CIT(A) HAS FURTHER GIVEN A RELIEF TO THE EXTENT OF GROSS PROFIT ALR EADY DECLARED BY THE ASSESSEE ON THIS ALLEGED PURCHASES. THE DETAILED FINDINGS SO RECORDED BY THE LOWER AUTHORITIES HAVE NOT BEEN CONTROVERTED BY THE LD. AR BY BRINING ANY POSITIVE MATTER ITA NO S . 53 77 / /MUM/2018. GANPATRAJ NEMAL JAIN MUMBAI . - 4 - ON RECORD. ACCORDINGLY I DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF CIT(A) FOR UPHOLDING ADDITION OF GP AT 12.50% AND FURTHER GIVING RELIEF OF GP ALREADY DECLARED BY THE ASSESSEE. 6. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 13/ 11 /201 9 SD/ - ( R.C. SHARMA ) ACCOUNTANT MEMBER MUMBAI DATED 13 /11 /20 1 9 KRK PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) 4. ( ) / CONCERNED CIT 5. / DR ITAT MUMBAI 6. / GUARD FILE . / BY ORDER //TRUE COPY// 1 . / ( ASST. REGISTRAR) / ITAT MUMBAI ITA NO S . 53 77 / /MUM/2018. GANPATRAJ NEMAL JAIN MUMBAI . - 5 - O T H E R M E M B E R