INCOME TAX OFFICER, 20(3)(2), MUMBAI v. M/S. R. PRATAP & SONS, MUMBAI

ITA 5649/MUM/2019 | 2009-2010
Pronouncement Date: 28-05-2021 | Result: Dismissed

Appeal Details

RSA Number 564919914 RSA 2019
Assessee PAN AAAFR4684D
Bench Mumbai
Appeal Number ITA 5649/MUM/2019
Duration Of Justice 1 year(s) 8 month(s) 28 day(s)
Appellant INCOME TAX OFFICER, 20(3)(2), MUMBAI
Respondent M/S. R. PRATAP & SONS, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 28-05-2021
Appeal Filed By Department
Order Result Dismissed
Bench Allotted SMC
Tribunal Order Date 28-05-2021
Last Hearing Date 30-03-2021
First Hearing Date 30-03-2021
Assessment Year 2009-2010
Appeal Filed On 30-08-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC MUMBAI BEFORE SHRI VIKAS AWASTHY JUDICIAL MEMBER . 5649 //2019 (. . 2009-10 ) ITA NO.5649/MUM/2019 (A.Y.2009-10) ITO-20(3)(2) R. NO. 612 6 TH FLOOR PIRAMAL CHAMBERS LALBAUG PAREL MUMBAI-400012 ...... ) / APPELLANT VS. M/S. R. PRATAP & SONS 112 LAKRI BUNDER DARUKHANA REAY ROAD MUMBAI-400010. PAN: AAAFR4684D ..... * / RESPONDENT ) -/ APPELLANT BY : SHRI SUSHIL KUMAR MISHRA * -/ RESPONDENT BY : NONE . / DATE OF HEARING : 30/03/2021 . / DATE OF PRONOUNCEMENT : 28/05/2021 / ORDER PER VIKAS AWASTHY J.M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-32 MUMBAI DATED [HEREINAFT ER REFERRED TO AS THE CIT(A)] ' DATED 19.06.2019 FOR THE ASSESSMENT YEAR (AY) 2009-10. 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM TH E RECORDS ARE: THE ASSESSEE IS ENGAGED IN TRADING OF STEEL PLATES CHANNELS ETC . IN RE-ASSESSMENT PROCEEDINGS THE AO OBSERVED THAT THE ASSESSEE HAS OBTAINED BOGU S PURCHASE BILLS AMOUNTING 2 . 5649 //2019 (. .2009-10 ) ITA NO.5649/MUM/2019 (A.Y.2009-10) TO RS. 1 43 76 924/- FROM THREE HAWALA OPERATORS DU RING THE PERIOD RELEVANT TO AY UNDER APPEAL. THE ASSESSEE FAILED TO DISCHARGE ITS ONUS IN PROVING GENUINENESS OF THE TRANSACTIONS AND AUTHENTICITY OF THE DEALERS. T HE AO ESTIMATED GROSS PROFIT (GP) ON BOGUS PURCHASES @ 12.5% AND MADE ADDITION O F RS. 17 97 115/-. AGGRIEVED BY THE ASSESSMENT ORDER DATED 13.03.2015 PASSED UNDER SECTION 143(3) READ WITH SECTION 147 OF THE INCOME TAX ACT 1961 [HEREINAFTER REFERRED TO AS THE ACT] THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) AFTER EXAMINING THE FACTS CONCLUDED THAT THE ASSESSEE MUS T HAVE MADE PURCHASES FROM THE GREY MARKET AND THEREAFTER OBTAINED BOGUS PURCH ASE BILLS FROM HAWALA OPERATORS. THE CIT(A) RESTRICTED THE DISALLOWANCE T O 5% OF THE TOTAL BOGUS PURCHASES. AGAINST THE FINDINGS OF CIT(A) THE REVE NUE IS IN APPEAL BEFORE THE TRIBUNAL. 3. SHRI SUSHIL KUAMR MISHRA REPRESENTING THE DEPART MENT VEHEMENTLY DEFENDED THE ASSESSMENT ORDER AND PRAYED FOR REVERS ING THE FINDINGS OF CIT(A). THE LD. DR SUBMITTED THAT THE AO HAS BEEN VERY CONS IDERATE IN ESTIMATING GP ON BOGUS PURCHASE AT 12.5% DESPITE THE FACT THE ASSES SEE FAILED TO PROVE GENUINENESS OF THE PURCHASES AND THE DEALERS. 4. SUBMISSIONS MADE BY LD. DR HEARD AND ORDERS OF A UTHORITIES BELOW EXAMINED. UNDISPUTEDLY THE ASSESSEE FAILED TO DISC HARGE ITS ONUS IN PROVING GENUINENESS OF THE PURCHASES AND THE DEALERS. THE A O MADE ADDITION BY ESTIMATING GP @ 12.5% ON BOGUS PURCHASES. THE ASSES SEE HAS DECLARED GP OF 6.71% DURING THE RELEVANT PERIOD THE CIT(A) HAS RE STRICTED THE ADDITION ON BOGUS PURCHASES TO 5% OVER AND ABOVE THE GP DECLARED BY THE ASSESSEE. 3 . 5649 //2019 (. .2009-10 ) ITA NO.5649/MUM/2019 (A.Y.2009-10) 5. I FIND NO INFIRMITY IN THE IMPUGNED ORDER THE S AME IS UPHELD AND THE APPEAL OF REVENUE IS DISMISSED BEING DEVOID OF ANY MERIT. ORDER PRONOUNCED IN THE OPEN COURT ON FRIDAY THE 28 TH DAY OF MAY 2021. SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI 3/ DATED: 28/05/2021 SK PS * 4 * 4 * 4 * 4 COPY OF THE ORDER FORWARDED TO : 1. ) / THE APPELLANT 2. * / THE RESPONDENT. 3. 5 ( )/ THE CIT(A)- 4. 5 CIT 5. * . . . / DR ITAT MUMBAI 6. 9 / GUARD FILE. BY ORDER //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT MUMBAI