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Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI
Before: SHRI VIKAS AWASTHYShri Balchandra Gopal Shirolkar
आयकर अपीलीय अिधकरण मुंबई पीठ “एस एम सी” , मुंबई IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC”, MUMBAI �ी �वकास अव�थी, �याियक सद�य के सम� BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं. 5772/मुं/2019 (िन.व.2010-11) ITA NO.5772/MUM/2019 (A.Y.2010-11)
ITO-28(1)(2), Room No. 328, 3rd Floor, Tower No.6, Vashi Railway Station Complex, ...... अपीलाथ' /Appellant Vashi, Navi Mumbai-400703. बनाम Vs. Shri Balchandra Gopal Shirolkar Flat No.103, Sudama CHS Ltd. Plot No. 49, Sector-29, Vashi, Navi Mumbai-400703. PAN: AACPS5913C ..... (ितवाद*/Respondent अपीलाथ' +ारा/ Appellant by : Ms. Smita Verma (ितवाद* +ारा/Respondent by : None सुनवाई क, ितिथ/ Date of hearing : 06/04/2021 घोषणा क, ितिथ/ Date of pronouncement : 02/07/2021 आदेश/ ORDER PER VIKAS AWASTHY, J.M: This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals)-26, Mumbai [hereinafter referred to as ‘the CIT(A)’] dated 17.06.2019 for the Assessment Year (AY) 2011-12. The solitary issue raised by the Revenue in appeal is against restricting addition on account of bogus purchases to 12.5% by the CIT(A).
आअसं. 5772/मुं/2019 (िन.व.2010-11) ITA NO.5772/MUM/2019 (A.Y.2010-11)
The assessee is engaged in manufacturing of Fire Temple structure. The assessment for AY 2010-11 in the case of assessee was re-opened on the ground that the assessee has obtained accommodation bills amounting to Rs. 5,19,478/- from suspicious dealers. The Assessing Officer (AO) made addition of the entire alleged bogus purchases. Aggrieved by the assessment order dated 25.01.2016 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). The CIT(A) upheld the findings of AO to the extent that the assessee has failed to discharge his onus in proving genuineness of the dealers and purchases made from them. However, the CIT(A) restricted the disallowance on bogus purchases to 12.5%.
Ms. Smita Verma representing the Department vehemently defended the assessment order. The Departmental Representative (DR) submitted that the assessee has failed to produce dealers or confirmations from them. The notices issued under section 133(6) of the Act to the suspicious dealers were received back unserved from the postal authorities with remarks “Left/Not Known/Address Incomplete”. The assessee has not furnished any document such as delivery challans, lorry receipts, stock register, etc. to prove trail of goods. The ld. DR prayed for restoring the addition as per the assessment order.
Submissions made by ld. DR heard, orders of the authorities below examined. Undisputedly, the assessee failed to discharge his onus in proving authenticity of the dealers and the purchase made from them. At the same time, it is observed that the AO has not disputed the sales turnover declared
आअसं. 5772/मुं/2019 (िन.व.2010-11) ITA NO.5772/MUM/2019 (A.Y.2010-11)
by the assessee. Without purchases, there cannot be sales, therefore, it is only the profit element embedded in such like transactions that can be brought to tax. (Re: PCIT vs. Paramshakti Distributors Pvt. Ltd. in Income Tax Appeal No. 413 of 2017 decided on 15.07.2019). The CIT(A) after taking into consideration entire facts restricted the addition on account of bogus purchases to 12.5%. I see no infirmity in the impugned order, therefore, the same is upheld and appeal of the Revenue is dismissed, sans merit. Order pronounced in the open court on Friday, the 02nd day of July, 2021.
Sd/- (VIKAS AWASTHY) �याियक सद�य / JUDICIAL MEMBER मुंबई/Mumbai, 1दनांक/Dated: 02/07/2021 SK, PS (ितिल�प अ2े�षत (ितिल�प अ2े�षतCopy of the Order forwarded to : (ितिल�प अ2े�षत (ितिल�प अ2े�षत 1. अपीलाथ'/The Appellant , 2. (ितवाद*/ The Respondent. 3. आयकर आयु3(अ)/ The CIT(A)- 4. आयकर आयु3 CIT 5. �वभागीय (ितिनिध, आय.अपी.अिध., मुबंई/DR, ITAT, Mumbai 6. गाड7 फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, Mumbai