INCOME TAX OFFICER-25(3)(3), MUMBAI v. RAMESH MADHAVJI DOSHI, MUMBAI

ITA 5665/MUM/2019 | 2011-2012
Pronouncement Date: 28-05-2021 | Result: Dismissed

Appeal Details

RSA Number 566519914 RSA 2019
Assessee PAN AABPD8633M
Bench Mumbai
Appeal Number ITA 5665/MUM/2019
Duration Of Justice 1 year(s) 8 month(s) 28 day(s)
Appellant INCOME TAX OFFICER-25(3)(3), MUMBAI
Respondent RAMESH MADHAVJI DOSHI, 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 2011-2012
Appeal Filed On 30-08-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC MUMBAI BEFORE SHRI VIKAS AWASTHY JUDICIAL MEMBER . 5665 //2019 (. . 2011-12 ) ITA NO.5665/MUM/2019 (A.Y.2011-12) ITO-25(3)(3) R. NO. 233 2 ND FLOOR KAUTILYA BHAWAN BANDRA KURLA COMPLEX BANDRA (E) MUMBAI-400051 ...... ) / APPELLANT VS. RAMESH MADHAVJI DOSHI 402 CASABLANCA M.G.ROAD OPP. SHAAN TALKIES VILE PARLE (E) MUMBAI-400059. PAN: AABPD8633M ..... * / 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)-53 MUMBAI [HEREINAFTER REF ERRED TO AS THE CIT(A)] ' DATED 14.06.2019 FOR THE ASSESSMENT YEAR (AY) 2011- 12. 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM RE CORDS ARE: THE ASSESSEE IS ENGAGED IN MANUFACTURING AND TRADING IN IRON & STEE L. ON THE BASIS OF INFORMATION 2 . 5665 //2019 (. .2011-12 ) ITA NO.5665/MUM/2019 (A.Y.2011-12) RECEIVED FROM THE SALES TAX DEPARTMENT GOVERNMENT OF MAHARASHTRA THE ASSESSMENT IN THE CASE OF ASSESSEE FOR AY 2011-12 W AS RE-OPENED. AS PER INFORMATION RECEIVED THE ASSESSEE HAD OBTAINED BOG US PURCHASE BILLS AMOUNTING TO RS. 39 69 888/- FROM M/S JINDUTT STEEL A DECLAR ED HAWALA OPERATOR BY THE SALES TAX DEPARTMENT GOVERNMENT OF MAHARASHTRA. DURING A SSESSMENT PROCEEDINGS THE ASSESSEE COULD NOT PROVE GENUINENESS OF THE DEA LERS AND THE TRAIL OF GOODS. NO STOCK REGISTER LORRY RECEIPT ETC. WERE FURNISH ED BY THE ASSESSEE. THE AO ACCEPTED THE SALES AND ESTIMATED GROSS PROFIT (GP) ON BOGUS PURCHASES @ 25%. THUS THE AO MADE ADDITION OF RS. 9 92 472/- ON ACC OUNT OF BOGUS PURCHASE TRANSACTIONS. AGGRIEVED BY THE ASSESSMENT ORDER DATED 17.03.2016 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). IN FIRST APPELLATE PROCEEDINGS THE CIT(A) RESTRICTED THE DISALLOWANCE ON BOGUS PURCHASE BY ESTIMATING GP AT 12.5%. HENCE THE PRESENT APPEAL B Y THE REVENUE. 3. SHRI SUSHIL KUAMR MISHRA REPRESENTING THE DEPART MENT VEHEMENTLY DEFENDED THE ASSESSMENT ORDER AND PRAYED FOR REVERS ING THE FINDINGS OF CIT(A). 4. SUBMISSIONS MADE BY LD. DR HEARD ORDERS OF AUTH ORITIES BELOW EXAMINED. UNDISPUTEDLY THE ASSESSEE FAILED TO PROVE GENUINEN ESS OF THE PURCHASES AND THE DEALERS. AT THE SAME TIME THE AO ACCEPTED THE SALE S DECLARED BY THE ASSESSEE. THE AO ESTIMATED GP ON BOGUS PURCHASES AT 25%. IN F IRST APPEAL THE CIT(A) RESTRICTED THE SAME TO 12.5%. I AM OF CONSIDERED VI EW THAT DISALLOWANCE MADE BY THE AO IN RESPECT OF BOGUS PURCHASE WAS ON THE HIGH ER SIDE. THE GP ESTIMATED AT 12.5% BY THE CIT(A) IS REASONABLE AND THE SAME HAS BEEN ACCEPTED BY THE 3 . 5665 //2019 (. .2011-12 ) ITA NO.5665/MUM/2019 (A.Y.2011-12) ASSESSEE. I SEE NO REASON TO INTERFERE WITH THE FIN DINGS OF CIT(A). THEREFORE THE IMPUGNED ORDER IS UPHELD AND THE APPEAL OF REVENUE IS DISMISSED. 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