AKSHAET ENGINEERING & CONSTRUCTION SERVICES P.LTD, MUMBAI v. ITO 9(1)(2), MUMBAI

ITA 7197/MUM/2016 | 2009-2010
Pronouncement Date: 15-11-2017 | Result: Partly Allowed

Appeal Details

RSA Number 719719914 RSA 2016
Assessee PAN AABCA2082Q
Bench Mumbai
Appeal Number ITA 7197/MUM/2016
Duration Of Justice 11 month(s) 8 day(s)
Appellant AKSHAET ENGINEERING & CONSTRUCTION SERVICES P.LTD, MUMBAI
Respondent ITO 9(1)(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 15-11-2017
Appeal Filed By Assessee
Tags No record found
Order Result Partly Allowed
Bench Allotted SMC
Tribunal Order Date 15-11-2017
Date Of Final Hearing 20-07-2017
Next Hearing Date 20-07-2017
First Hearing Date 20-07-2017
Assessment Year 2009-2010
Appeal Filed On 07-12-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH MUMBAI BEFORE SHRI R.C.SHARMA AM ITA NO. 7197 / MUM/20 16 ( ASSESSMENT YEAR : 2009 - 10 ) M/S. AKSHAET ENGINEERING & CONSTRUCTION SERVICES PVT.LTD. 204 INDO SAIGON INDL. ESTATE MAROL NAKA ANDHERI (E) MU MBAI 400 059 VS. ITO 9(1)(2) PAN/GIR NO. AABCA2082Q APPELLANT ) .. RESPONDENT ) ASSESSEE BY NONE REVENUE BY SHRI S.K. MITRA DATE OF HEARING 07 / 09 /201 7 DATE OF PRONOUNCEME NT 15 / 11 /201 7 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 16 MUMBAI DATED 20/09/2016 FOR A.Y.2009 - 10 IN THE MATTER OF ORDER PASSED U/S.143(3) R.W.S. 147 OF THE ITACT. 2.THE FOLLOWING GROUNDS HAVE BEEN T AKEN BY THE ASSESSEE: - 1. THE HONOURABLE COMMISSIONER OF INCOME TAX (APPEAL 16 ) HAS ERRED IN UPHOLDING AND RETAINING THE ADDITIONS ON ACCOUNT OF ALLEGED BOGUS PURCHASES TO RS. 452579 BEING 12.5% OF THE AMOUNT OF ALLEGED BOGUS PURCHASE OF RS. 3620629. 2 . THE APPELLANT PRAYS THAT RETAINED ADDITIONS OF RS. 452579 (BEING 12.5% OF THE ALLEGED BOGUS PURCHASES) MAY PLEASE BE DELETED. 3. THE APPELLANT CRAVES THE LEAVE TO ADD DELETE CHANGE ALTER OR AMEND ANY OF THE ABOVE GROUNDS OF APPEAL ON OR BEFORE TH E TIME OF HEARING. ITA NO. 7197/MUM/20 16 M/S. AKSHAET ENGINEERING & CONSTRUCTION 2 3. NOBODY APPEARED ON BEHALF OF THE ASSESSEE INSTEAD OF GIVING OPPORTUNITY. THE BENCH THEREFORE DECIDED TO DISPOSE THE APPEAL AFTER HEARING LEARNED DR AND CONSIDERING THE MATERIAL PLACED ON RECORD. 4. THE BRIEF FACTS OF THE CASE ARE T HAT THE ASSESSEE COMPANY FILED ITS RETURN OF INCOME FOR A.Y.2009 - 10 ON 17/04/2015 DECLARING TOTAL INCOME AT RS.11 64 305/ - . THEREAFTER ON THE BASIS OF INFORMATION RECEIVED FROM SALES TAX (VAT) DEPARTMENT STATE OF MAHARASHTRA THE CASE WAS RE - OPENED U/S.14 7 OF THE I.T. ACT AND AN ORDER U/S.143(3) R.W.S.147 OF THE INCOME TAX ACT 1961 WAS PASSED ON 27/03/2015 ASSESSING THE TOTAL INCOME OF THE ASSESSEE AT RS.48 56 120/ - WHEREBY THE PURCHASES FOR AN AMOUNT OF RS.36 20 629/ - WERE DISALLOWED U/S 68 & 69C OF THE ACT AND ADDITION OF RS.71 182/ - WAS MADE U/S.37(1). 5. BY THE IMPUGNED ORDER CIT(A) CONFIRMED THE ADDITION OF RS.71 182/ - MADE U/S.37(1). HOWEVER IN RESPECT OF BOGUS PURCHASES HE RESTRICTED THE ADDITION TO 12.5% AFTER HAVING FOLLOWING OBSERVATION: - NOT HAVING DOUBTED THE CONSUMPTION/SALES THE MOTIVE BEHIND OBTAINING BOGUS BILLS THUS APPEARS TO BE INFLATION OF PURCHASE PRICE SO AS TO SUPPRESS TRUE PROFITS CONSIDERING THE FACTS OF THE CASE AS WELL AS THE VARIOUS CASE LAWS CITED (SUPRA) I ESTIMATE THE SUPPRESSED PROFIT TO THE EXTENT OF 12.5% OF THE PURCHASES MADE FROM THE BOGUS ENTITIES AS THE SUPPRESSED PROFIT ELEMENT EMBEDDED IN SUCH PURCHASES. THIS ESTIMATION IS IN ADDITION TO THE GP SHOWN BY THE APPELLANT. ACCORDINGLY THIS GROUND OF APPEAL IS PARTLY ALLOWED. 6. I HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND THAT ASSESSEE IS ENGAGED IN FABRICATION ENGINEERING AND TRADING IN ALUMINIUM PRODUCTS. THE CONSUMPTION / SALES OF THE ALLEGED GOODS SO PU RCHASED FROM BOGUS SUPPLIERS WERE NOT DOUBTED . CONSIDERING THE GP RATE OFFERED ITA NO. 7197/MUM/20 16 M/S. AKSHAET ENGINEERING & CONSTRUCTION 3 BY THE ASSESSEE VIS - - VIS VOLUME OF BUSINESS IT WAS CARRIED ON I DIRECT THE AO TO RESTRICT THE ADDITION TO THE EXTENT OF 10% OF PURCHASE. I DIRECT ACCORDINGLY. 7. IN THE RESULT APPEAL IS ALLOW ED IN PART. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 15 / 11 /2017 S D/ - ( R.C.SHARMA ) ACCOUNTANT MEMBER MUMBAI ; DATED 15 / 11 /201 7 KARUNA SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER ( ASSTT. REGISTRAR) ITAT MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) MUMBAI. 4. CIT 5. DR ITAT MUMBAI 6. GUARD FILE. //TRUE COPY//