Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI
Before: SRI MAHAVIR SINGH
O R D E R भहावीय स िंह, उऩाध्मक्ष के द्वाया / PER MAHAVIR SINGH, VP: This appeal of the assessee is arising out of order of the Commissioner of Income Tax (Appeals)]-1, Pune [in short CIT(A)], in appeal No. CIT(A), Pune-11/10176/2015-16 vide dated 20.08.2020. The Assessment was framed by the Dy. Commissioner of Income Tax, Circle 1, Thane (in short DCIT/ AO) for the A.Y. 2010-11 vide order dated 02.02.2015 under section 143(3) read with section 147 of the Income-tax Act, 1961 (hereinafter ‘the Act’).
When this appeal was called for hearing, none was present from assessee. As seen the nature of additions made and grounds of appeal raised, the matter is heard.
2 Shreeji Traders; AY 10-11 3. The only issue in this appeal of assessee is as regards to the order of CIT(A) upholding the addition of ₹77,832/- treating the purchase made from Kameshwar Trading P. Ltd. as bogus. For this assessee, has raised the following ground No.2:-
2. Without prejudice to the above he has erred in law nd on facts in upholding addition of ₹ 77,832/- treating the said purchase from Kameshwar Trading P. ltd. As bogus without considering and appreciating the facts of the appellant.
I have heard the learned Sr. Departmental Representative and gone through the facts and circumstances of the case. I find from the orders of the lower authorities that the assessee is beneficiary of hawala bill issued by hawala operators found out by Maharashtra Sales Tax Department during the search conducted on several dealers and beneficiaries. The assessee has taken bills from Kameshwar Trading P. Ltd. amounting to ₹77,832/-. The assessee submitted the bills and vouchers but could not submit the delivery challan as the material was purchased by assessee. But I find that none of the authorities below have doubted the sales made out of this purchase and hence, it cannot be said that the assessee has not made sales. The assessee might have procured bills and made purchases from grey market for gaining some profit. Hence, I estimate the profit at the rate of 12.5 % of the bogus purchases of ₹77,832/- . I direct the Assessing Officer to restrict the disallowance at 12.5% of the bogus purchases accordingly.