Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI
Before: SHRI VIKAS AWASTHY
आदेश/ ORDER PER VIKAS AWASTHY, J.M: This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals)-32, Mumbai dated [hereinafter referred to as ‘the CIT(A)’] ' dated 19.06.2019 for the Assessment Year (AY) 2009-10.
The brief facts of the case as emanating from the records are: The assessee is engaged in trading of Steel plates, channels etc. In re-assessment proceedings, the AO observed that the assessee has obtained bogus purchase bills amounting
आअसं. 5649/मुं/2019 (िन.व.2009-10) (A.Y.2009-10) to Rs. 1,43,76,924/- from three hawala operators during the period relevant to AY under appeal. The assessee failed to discharge its onus in proving genuineness of the transactions and authenticity of the dealers. The AO estimated Gross Profit (GP) on bogus purchases @ 12.5% and made addition of Rs. 17,97,115/-.
Aggrieved by the assessment order dated 13.03.2015 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) after examining the facts concluded that the assessee must have made purchases from the grey market and thereafter obtained bogus purchase bills from hawala operators. The CIT(A) restricted the disallowance to 5% of the total bogus purchases. Against the findings of CIT(A), the Revenue is in appeal before the Tribunal.
Shri Sushil Kuamr Mishra representing the Department vehemently defended the assessment order and prayed for reversing the findings of CIT(A). The ld. DR submitted that the AO has been very considerate in estimating GP on bogus purchase at 12.5% despite the fact, the assessee failed to prove genuineness of the purchases and the dealers.
Submissions made by ld. DR heard and orders of authorities below examined. Undisputedly, the assessee failed to discharge its onus in proving genuineness of the purchases and the dealers. The AO made addition by estimating GP @ 12.5% on bogus purchases. The assessee has declared GP of 6.71% during the relevant period, the CIT(A) has restricted the addition on bogus purchases to 5%, over and above the GP declared by the assessee.
आअसं. 5649/मुं/2019 (िन.व.2009-10) (A.Y.2009-10)
I find no infirmity in the impugned order, the same is upheld and the appeal of Revenue is dismissed, being devoid of any merit.
Order pronounced in the open court on Friday, the 28th day of May, 2021.