SECURITY VISION,MUMBAI vs. INCOME TAX OFFICER 21(3)(2), MUMBAI

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ITA 5457/MUM/2019Status: DisposedITAT Mumbai05 April 2021AY 2013-143 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal found the lower authorities' estimation of additions on account of suspicious purchases to be judicious, as sales were not doubted and primary purchase documents were available. The assessee's inability to conclusively substantiate purchases justified the addition.

What were the facts?

The assessee, engaged in trading security cameras, could not conclusively substantiate purchases of Rs. 48.92 Lacs from 10 parties. Despite furnishing ledger accounts and invoices, the assessee failed to produce the suppliers.

What were the issues?

Whether the addition made on account of bogus purchases, based on estimation, is justified when the assessee could not conclusively substantiate the purchases despite having primary documents.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 133(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI

Before: HON’BLE SHRI SAKTIJIT DEY, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

For Respondent: Ms. Smita Verma – Ld. Sr. DR

आयकर अपीलीय अधिकरण “एक-सदस्य मामला” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI माननीय श्री शक्तिजीत दे, न्याययक सदस्य एवुं माननीय श्री मनोज कुमार अग्रवाल ,लेखा सदस्य के समक्ष। BEFORE HON’BLE SHRI SAKTIJIT DEY, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM (Hearing Through Video Conferencing Mode) आयकरअपील सं./ (धििाारण वर्ा / Assessment Year: 2013-14) Security Vision ITO-21(3)(2) बिाम/ 9, Anand Vaibhav Piramal Chambers N.C.Kelkar Road, Dadar(W) Parel Vs. Mumbai – 400 028. Mumbai – 400 012. स्थायीलेखासं./जीआइआरसं./PAN/GIR No. AABFS-2225-G (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Assessee by : None Revenue by : Ms. Smita Verma – Ld. Sr. DR सुनवाई की तारीख/ : 17/03/2021 Date of Hearing घोषणा की तारीख / : 05.04.2021 Date of Pronouncement आदेश / O R D E R Per Manoj Kumar Aggarwal (Accountant Member)

1.

At the time of hearing of appeal, though none appeared for assessee, but the material on record was sufficient for disposal of appeal. The Ld. Sr. DR pleaded for dismissal of appeal justifying the estimations made by lower authorities on account of alleged bogus purchases.

2.

The material facts are that the assessee being resident firm stated to be engaged in trading of security cameras was assessed for the year under consideration u/s 143(3) on 30/03/2016. During assessment proceedings, upon verification of purchases made by the assessee, it transpired that the assessee could not conclusively substantiate aggregate purchases of Rs.48.92 Lacs stated to be made from 10 parties as detailed in para 4.3 of the assessment order. The notices issued u/s 133(6) did not elicit satisfactory response. The assessee could merely furnish ledger accounts and purchase invoices but could not produce any of these suppliers. Consequently, Ld. AO estimated an addition of 12.5% against these purchases. The said estimation, upon confirmation by Ld. CIT(A), is under challenge before us. 3. After going through the orders of lower authorities, we find that the impugned order is reasoned one and a judicious order. The circumstances as noted by lower authorities made it a fit case for estimating additions on account of suspicious purchases since the sales were not doubted and the assessee was in possession of primary purchase documents. However, it could not substantiate the purchases conclusively. 4. Resultantly, the appeal stands dismissed.

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