INCOME TAX OFFICER, 20(3)(2), MUMBAI v. SAMIULLAH M.K. ANSARI, MUMBAI

ITA 5650/MUM/2019 | 2009-2010
Pronouncement Date: 28-05-2021 | Result: Dismissed

Appeal Details

RSA Number 565019914 RSA 2019
Assessee PAN AFNPA4055P
Bench Mumbai
Appeal Number ITA 5650/MUM/2019
Duration Of Justice 1 year(s) 8 month(s) 28 day(s)
Appellant INCOME TAX OFFICER, 20(3)(2), MUMBAI
Respondent SAMIULLAH M.K. ANSARI, 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 . 5650 //2019 (. . 2009-10 ) ITA NO.5650/MUM/2019 (A.Y.2009-10) ITO-20(3)(2) R. NO. 612 6 TH FLOOR PIRAMAL CHAMBERS LALBAUG PAREL MUMBAI-400012 ...... ) / APPELLANT VS. SAMIULLAH M.K. ANSARI VAISHALI TUBE CENTER 2 ND LANE CORNER OPP. CASTROL LTD. MAGAZINE STREET DARUKHANA REAY ROAD MUMBAI-400010. PAN: AFNPA4055P ..... * / 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 [HEREINAFTER REF ERRED TO AS THE CIT(A)] ' DATED 17.06.2019 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 IRON & STEEL. ON THE BASIS OF INFORMATION RECEIVED FROM 2 . 5650 //2019 (. .2009-10 ) ITA NO.5650/MUM/2019 (A.Y.2009-10) THE SALES TAX DEPARTMENT GOVERNMENT OF MAHARASHTRA THE ASSESSMENT FOR AY 2009-10 WAS RE-OPENED. AS PER THE INFORMATION RECEI VED THE ASSESSEE HAD OBTAINED BOGUS PURCHASE BILLS AGGREGATING TO RS. 62 56 306/- FROM VARIOUS (NINE) HAWALA OPERATORS DURING THE PERIOD RELEVANT TO AY U NDER APPEAL. DURING ASSESSMENT PROCEEDINGS THE ASSESSEE FAILED TO PROV E AUTHENTICITY OF DEALERS AND GENUINENESS OF THE GOODS PURCHASED. SINCE THE AO HA D ACCEPTED SALES DECLARED BY THE ASSESSEE THE AO ESTIMATED GROSS PROFIT (GP) AT 12.5% OF BOGUS PURCHASES AND MADE ADDITION OF RS. 7 82 038/-. AGGRIEVED BY THE ASSESSMENT ORDER DATED 20.03.2015 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 RESTRICTED THE ADDITION TO RS. 3 12 815/- BY ESTIMATING GP @ 5% OF BOGUS PURCHASES. AGAINST THE FINDINGS OF CIT( A) THE REVENUE 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 ASSESSEE HAD OBTAINED BOGUS PURCHASE BILLS FROM HAWALA OPERATORS. THE ASSESSEE NEITHER PRODUCE THE DEALERS NOR THE ASSESSEE COULD FURNISH DOCUMENTARY EVIDENCE IN THE FORM OF S TOCK REGISTER TRANSPORT RECEIPTS ETC. TO SUBSTANTIATE TRAIL OF GOODS. THE ESTIMATION OF GP BY THE AO AT 12.5% OF THE BOGUS PURCHASES WAS REASONABLE AND THU S THE SAME SHOULD BE SUSTAINED. 4. SUBMISSIONS MADE BY LD. DR HEARD ORDERS OF AUTH ORITIES BELOW EXAMINED. UNDISPUTEDLY THE ASSESSEE FAILED TO DISCHARGE HIS ONUS IN PROVING GENUINENESS OF 3 . 5650 //2019 (. .2009-10 ) ITA NO.5650/MUM/2019 (A.Y.2009-10) THE PURCHASES AND AUTHENTICITY OF THE DEALERS. THE AO HAD ACCEPTED THE SALES TURNOVER DECLARED BY THE ASSESSEE THEREFORE IT IS ONLY THE PROFIT EMBEDDED IN THE ALLEGED BOGUS PURCHASES THAT HAS TO BE BROUGHT TO T AX. GENERALLY IN TRADING OF FERROUS AND NON-FERROUS METALS THE GP RANGES BETWE EN 5% TO 8%. ESTIMATION OF GP AT 12.5% ON BOGUS PURCHASES BY AO IS ON HIGHER S IDE. THE CIT(A) HAS ESTIMATED GP AT 5% AND RESTRICTED THE ADDITION TO RS. 3 12 81 5/-. I FIND NO INFIRMITY IN THE IMPUGNED ORDER HENCE THE SAME IS UPHELD AND THE A PPEAL 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