M/S. FACETS, MUMBAI v. ITO 24(1)(3), MUMBAI

ITA 6154/MUM/2018 | 2010-2011
Pronouncement Date: 10-05-2021 | Result: Dismissed

Appeal Details

RSA Number 615419914 RSA 2018
Bench Mumbai
Appeal Number ITA 6154/MUM/2018
Duration Of Justice 2 year(s) 6 month(s) 11 day(s)
Appellant M/S. FACETS, MUMBAI
Respondent ITO 24(1)(3), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 10-05-2021
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted F
Tribunal Order Date 10-05-2021
Last Hearing Date 06-02-2020
First Hearing Date 10-05-2021
Assessment Year 2010-2011
Appeal Filed On 29-10-2018
Judgment Text
ITA NO.6154/MUM/2018 M/S. FACETS ASSESSMENT YEAR: 2010-11 1 IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH MUMBAI BEFORE HONBLE SHRI MAHAVIR SINGH VP AND HONBLE SHRI MANOJ KUMAR AGGARWAL AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO.6154/MUM/2018 ( / ASSESSMENT YEAR : 2010-11) M/S. FACETS 502 GULSHAN 2 JUHU LANE ANDHERI (W) MUMBAI-400 058 / VS. I TO - 24(1)(3) PRATYAKSHKAR BHAVAN BKC BANDRA (E) MUMBAI-400 051 )* ./ ./PAN/GIR NO. AABFF-5276-C ( * /APPELLANT ) : ( -.* / RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : MS. USHA GAIKWAD-LD. SR. DR / DATE OF HEARING : 10/05/2021 / DATE OF PRONOUNCEMENT : 10/05/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. IN THIS APPEAL FOR ASSESSMENT YEAR (AY) 2010-11 THE ASSESSEE IS AGGRIEVED BY CERTAIN ADDITION ON ACCOUNT OF ALLEGED BOGUS PURCHASES. THOUGH NONE APPEARED FOR ASSESSEE HOWEVER MATERIA L ON RECORD WAS SUFFICIENT FOR DISPOSAL OF THE APPEAL. THE LD. DR P LEADED FOR DISMISSAL OF APPEAL. ITA NO.6154/MUM/2018 M/S. FACETS ASSESSMENT YEAR: 2010-11 2 2.1 THE MATERIAL FACTS ARE THAT THE ASSESSEE BEING RESIDENT FIRM STATED TO BE ENGAGED IN TRADING OF DIAMONDS WAS ASSESSED F OR THE YEAR UNDER CONSIDERATION U/S 143(3) R.W.S. 147 ON 30/06/2016. THE ORIGINAL RETURN FILED BY ASSESSEE WAS PROCESSED U/S 143(1). HOWEVER PURSUANT TO RECEIPT OF CERTAIN INFORMATION FROM DGIT (INVESTIGA TION) MUMBAI IT TRANSPIRED THAT THE ASSESSEE MADE ALLEGED BOGUS PUR CHASES OF RS.21.09 LACS FROM AN ENTITY NAMELY M/S KRISHNA DIAM. ACCORD INGLY THE CASE WAS REOPENED AS PER DUE PROCESS OF LAW AND THE ASSESSEE WAS REQUIRED TO FILE REQUISITE DETAIL TO SUBSTANTIATE THE PURCHASES . 2.2 IN SUPPORT OF PURCHASES THE ASSESSEE FURNISHED PURCHASE REGISTER SALES REGISTER STOCK REGISTER BANK STATEMENT PUR CHASE BILLS LEDGER CONFIRMATION ETC. HOWEVER GOING BY THE FINDINGS OF INVESTIGATION WING THAT THE SUPPLIER BELONGED TO A TAINTED GROUP OF GA UTAM JAIN & ORS. AND VARIOUS CONCERNS OF THIS GROUP WERE NOT CARRYING OU T ANY GENUINE BUSINESS ACTIVITY THE PURCHASES SO MADE BY THE ASS ESSEE WERE NOT TO BE ACCEPTED AS GENUINE PURCHASES. FINALLY LD. ESTI MATED GROSS PROFIT ADDITION OF 21.36% AGAINST THESE PURCHASES. 3. UPON FURTHER APPEAL LD. CIT(A) RELYING UPON TH E DECISION OF HONBLE GUJARAT HIGH COURT IN CIT V/S SIMIT P. SHETH (356 ITR 451) ESTIMATED THE ADDITIONS @12.5%. AGGRIEVED THE ASSE SSEE IS IN FURTHER APPEAL BEFORE US. 4. GOING BY THE FACTUAL MATRIX AS ENUMERATED IN THE ORDERS OF LOWER AUTHORITIES WE FIND THAT THE SALES TURNOVER WAS NO T IN DOUBT AND THE ASSESSEE WAS IN POSSESSION OF PRIMARY PURCHASE DOCU MENTS. THE PAYMENT TO THE SUPPLIER WAS THROUGH BANKING CHANNEL S. THERE COULD BE ITA NO.6154/MUM/2018 M/S. FACETS ASSESSMENT YEAR: 2010-11 3 NO SALE WITHOUT ACTUAL PURCHASE OF MATERIAL KEEPING IN VIEW THE ASSESSEES NATURE OF BUSINESS. THE FACTS OF THE CAS E MADE IT A FIT CASE TO ESTIMATE THE PROFIT ELEMENT EMBEDDED IN THESE TRANS ACTIONS. THE LD. CIT(A) AFTER DUE CONSIDERATION OF ASSESSEES SUBMI SSIONS AS WELL AS MATERIAL ON RECORD ESTIMATED THE ADDITIONS @ 12.5%. THE SAID ESTIMATION IN OUR OPINION COULD NOT BE TERMED AS UNJUSTIFIED IN ANY MANNER. THEREFORE FINDING NO REASON TO INTERFERE I N THE IMPUGNED ORDER WE DISMISS THE APPEAL. 5. THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED ON 10 TH MAY 2021 SD/- SD/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI; DATED : 10/05/2021 SR.PS JAISY VARGHESE !'! / COPY OF THE ORDER FORWARDED TO : 1. * / THE APPELLANT 2. -.* / THE RESPONDENT 3. 5 ( ) / THE CIT(A) 4. 5 / CIT CONCERNED 5. 67-08 8 / DR ITAT MUMBAI 6. 79:; / GUARD FILE / BY ORDER / (DY./ASSTT.REGISTRAR) / ITAT MUMBAI.