ITO-20(2)(4), MUMBAI, MUMBAI v. NAVIN RAMNIKLAL GALA, MUMBAI

ITA 6365/MUM/2019 | 2010-2011
Pronouncement Date: 21-05-2021 | Result: Dismissed

Appeal Details

RSA Number 636519914 RSA 2019
Assessee PAN AAFPG9082K
Bench Mumbai
Appeal Number ITA 6365/MUM/2019
Duration Of Justice 1 year(s) 7 month(s) 17 day(s)
Appellant ITO-20(2)(4), MUMBAI, MUMBAI
Respondent NAVIN RAMNIKLAL GALA, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 21-05-2021
Appeal Filed By Department
Order Result Dismissed
Bench Allotted SMC
Tribunal Order Date 21-05-2021
Last Hearing Date 04-05-2021
First Hearing Date 04-05-2021
Assessment Year 2010-2011
Appeal Filed On 04-10-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC MUMBAI BEFORE SHRI VIKAS AWASTHY JUDICIAL MEMBER . 6365 //2019 (. . 2010-11 ) ITA NO.6365/MUM/2019 (A.Y.2010-11) ITO-20(2)(4) R. NO. 216 2 ND FLOOR PIRAMAL CHAMBERS LALBAUG MUMBAI- 400012 ...... ) / APPELLANT VS. NAVIN RAMNIKLAL GALA 3-120 M.H.B COLONY KALACHOWKI COTTON GREEN MUMBAI-400027 PAN: AAFPG9082K ..... * / RESPONDENT ) -/ APPELLANT BY : MS. SMITA VERMA * -/ RESPONDENT BY : MS. RUCHI RATHOD . / DATE OF HEARING : 04 /05/2021 . / DATE OF PRONOUNCEMENT : 21/05/2021 / ORDER PER VIKAS AWASTHY J.M: 1. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST T HE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-32 MUMBAI [HEREINAFTER REF ERRED TO AS THE CIT(A)] DATED 01.07.2019 FOR THE ASSESSMENT YEAR (AY) 2010- 11. 2. MS. RUCHI RATHOD APPEARING ON BEHALF OF THE ASSE SSEE SUBMITTED AT THE OUTSET THAT THE CIT(A) HAS GRANTED RELIEF TO THE AS SESSEE IN RESPECT OF BOGUS PURCHASES BY FOLLOWING THE ORDER OF TRIBUNAL IN ASS ESSEES OWN CASE IN ITA NO. 2 . 6365 //2019 (. .2010-11 ) ITA NO.6365/MUM/2019 (A.Y.2010-11) 3608/MUM/2018 FOR ASSESSMENT YEAR (AY) 2009-10 DECI DED ON 23.04.2019. THE TRIBUNAL IN IDENTICAL SET OF FACTS IN AY 2009-10 HA D RESTRICTED THE ADDITION IN RESPECT OF ALLEGED BOGUS PURCHASES BY REDUCING THE GROSS PROFIT (GP) RATE ALREADY DECLARED BY THE ASSESSEE FROM 12.5% GP ESTIMATED B Y THE ASSESSING OFFICER. IN THE INSTANT CASE THE CIT(A) HAS PASSED THE IMPUGNE D ORDER IN LINE WITH THE ORDER OF TRIBUNAL IN ASSESSEES OWN CASE FOR AY 2009-10 ( SUPRA). 2. ON THE OTHER HAND MS. SMITA VERMA REPRESENTING THE DEPARTMENT STRONGLY SUPPORTED THE ASSESSMENT ORDER AND PRAYED FOR REVER SING THE FINDINGS OF CIT(A). HOWEVER LD. DR FAIRLY ADMITTED THAT IN IDENTICAL S ET OF FACTS IN ASESSEES OWN CASE FOR AY 2009-10 THE TRIBUNAL HAS RESTRICTED THE ADD ITION ON ACCOUNT OF BOGUS PURCHASES TO 12.5% MINUUS THE GP ALREADY DECLARED B Y THE ASSESSEE ON SUCH PURCHASES. 3. BOTH SIDES HEARD ORDERS OF AUTHORITIES BELOW EX AMINED. THE ASSESSEE HAS ALLEGEDLY INDULGED IN OBTAINING BOGUS PURCHASE BILL S AGGREGATING TO RS. 65 86 296/- FROM HAWALA OPERATORS. SINCE THE SALES TURNOVER DE CLARED BY ASSESSEE WAS ACCEPTED BY THE AO THE ENTIRE PURCHASES COULD NOT HAVE BEEN DISALLOWED. THE AO ESTIMATED GP @ 12.5% ON BOGUS PURCHASES AND MADE AD DITION OF RS. 8 23 287/-. IN FIRST APPELLATE PROCEEDINGS THE CIT(A) FOLLOWIN G THE ORDER OF TRIBUNAL IN ASSESSEES OWN CASE IN AY 2009-10 (SUPRA) GRANTED P ART RELIEF TO THE ASSESSEE BY REDUCING GP RATE ALREADY DECLARED BY THE ASSESSEE F ROM GP RATE ESTIMATED BY THE AO. BOTH SIDES ARE UNANIMOUS IN STATING THAT NATURE AND MANNER OF TRANSACTIONS IN AY 2010-11 ARE IDENTICAL TO AY 2009-10. 3 . 6365 //2019 (. .2010-11 ) ITA NO.6365/MUM/2019 (A.Y.2010-11) 4. IN THE FACTS OF CASE I FIND NO INFIRMITY IN THE ORDER OF CIT(A). THE IMPUGNED ORDER IS UPHELD AND THE APPEAL OF REVENUE IS DISMIS SED SANS MERIT. ORDER PRONOUNCED IN THE OPEN COURT ON FRIDAY THE 21 ST DAY OF MAY 2021. SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI 3/ DATED: 21/05/2021 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