INCOME TAX OFFICER 21(2)(2), MUMBAI v. MAHAVIR ENGINEERING COMPANY, MUMBAI

ITA 5451/MUM/2019 | 2009-2010
Pronouncement Date: 16-03-2021 | Result: Dismissed

Appeal Details

RSA Number 545119914 RSA 2019
Bench Mumbai
Appeal Number ITA 5451/MUM/2019
Duration Of Justice 1 year(s) 6 month(s) 25 day(s)
Appellant INCOME TAX OFFICER 21(2)(2), MUMBAI
Respondent MAHAVIR ENGINEERING COMPANY, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 16-03-2021
Appeal Filed By Department
Order Result Dismissed
Bench Allotted SMC
Tribunal Order Date 16-03-2021
Last Hearing Date 15-03-2021
First Hearing Date 15-03-2021
Assessment Year 2009-2010
Appeal Filed On 21-08-2019
Judgment Text
1 - IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH MUMBAI BEFORE HONBLE SHRI SAKTIJIT DEY JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO.5451/MUM/2019 ( / ASSESSMENT YEAR: 2009-10) & ./ I.T.A. NO.5452/MUM/2019 ( / ASSESSMENT YEAR: 2011-12) ITO - 21(2)(2) PIRAMAL CHAMBERS FIRST FLOOR ROOM NO. 109 LALBAUG PAREL MUMBAI 400 012. / VS. MAHAVIR ENGINEERING COMPANY 424A UNIT NO:10 2 ND FLR RAUT INDL. ESTATE SENAPATI BAPAT MARG MAHIM MUMBAI 400 016 $% # ./ # ./PAN/GIR NO. AAEFM-1894-N ( ' %' /APPELLANT ) : ( ()%' / RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : MS. SMITA VERMA LD. SR. DR / DATE OF HEARING : 16/03/2021 / DATE OF PRONOUNCEMENT : 16/03/2021 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEALS BY REVENUE FOR ASSESSMENT YEAR S [AY IN SHORT] 2009-10 AND 2011-12 CONTEST COMMON ORDER OF LD. COM MISSIONER OF INCOME TAX (APPEALS)-48 MUMBAI [IN SHORT CIT(A) ] WHICH HAS RESTRICTED THE ADDITION ON ACCOUNT OF SUSPICIOUS PURCHASES TO THE EXTENT OF 15% AS AGAINST FULL ADDITION MADE BY LD. AO. 2 2. THOUGH NONE APPEARED FOR ASSESSEE HOWEVER MATE RIAL ON RECORD WAS SUFFICIENT FOR DISPOSAL OF THE APPEALS. THE LD. DR PLEADED FOR RESTORATION OF ASSESSMENT FRAMED BY LD. AO. 3.1 THE MATERIAL FACTS THAT THE ASSESSEE BEING RESI DENT FIRM STATED TO BE ENGAGED IN TRADING OF ELECTRICAL MOTORS AND PUMP S HAS BEEN ASSESSED IN SIMILAR MANNER FOR BOTH THE YEARS U/S 143(3) R.W.S. 147. THE ASSESSMENT WAS SO FRAMED PURSUANT TO RECEIPT OF CERTAIN INFORMATION FROM SALES TAX DEPARTMENT THAT THE ASSESSEE PROCURE D ACCOMMODATION PURCHASE BILLS FROM SUSPICIOUS DEALERS. THE ASSESSE E MADE PURCHASE OF RS.2.99 LACS FROM 2 PARTIES IN AY 2009-10 AS DETAIL ED IN THE ASSESSMENT ORDER. THE QUANTUM OF PURCHASE IN AY 2011-12 IS RS. 2.60 LACS. 3.2 THOUGH THE ASSESSEE FILED CERTAIN DOCUMENTARY E VIDENCES IN SUPPORT OF PURCHASES HOWEVER NOTICES ISSUED U/S 1 33(6) DID NOT ELICIT ANY SATISFACTORY RESPONSE. CONSEQUENTLY THESE PURC HASES WERE DISALLOWED AND ADDED BACK TO ASSESSEES INCOME IN B OTH THE YEARS. 4. UPON FURTHER APPEAL LD. CIT(A) NOTED THAT THE A SSESSEE WAS A TRADER AND THEREFORE IT WOULD BE LOGICAL TO CONCLU DE THAT THE MATERIAL WAS PURCHASED FROM OTHER PARTIES IN THE GREY MARKET. AC CORDINGLY IT WOULD BE A FIT CASE TO MAKE ESTIMATED ADDITIONS TO ACCOUNT F OR PROFIT ELEMENT EMBEDDED IN THESE TRANSACTIONS. THE ESTIMATION WAS DONE AT 15% FOR BOTH THE YEARS WHICH HAS GIVEN RISE TO REVENUES AP PEALS BEFORE US. 6. GOING BY THE FACTUAL MATRIX AND AFTER DUE CONSID ERATION OF FACTUAL MATRIX WE FIND THAT THE ISSUE HAS BEEN CLINCHED IN RIGHT PERSPECTIVE BY LD. CIT(A). SINCE THE ASSESSEE WAS A TRADER IT WAS A FIT CASE TO ESTIMATE THE PROFIT ELEMENT EMBEDDED IN THESE TRANSACTIONS. CONCURRING WITH FINDINGS OF LD. CIT(A) IN THE IMPUGNED ORDER WE DI SMISS BOTH THE APPEALS. 3 7. BOTH THE APPEALS STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH MARCH 2021. SD/- SD/- (SAKTIJIT DEY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 16/03/2021 SR.PS JAISY VARGHESE ! / COPY OF THE ORDER FORWARDED TO : 1. ' %'/ THE APPELLANT 2. ()%'/ THE RESPONDENT 3. !! (' ) / THE CIT(A) 4. !! / CIT CONCERNED 5. Z[ (\ !' \ / DR ITAT M UMBAI 6. []_ / GUARD FILE / BY ORDER / (DY./ASSTT.REGISTRAR) / ITAT MUMBAI.