ITO 8(2)(2), MUMBAI vs. M/S SMIT EXPORTS PVT. LTD, MUMBAI

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ITA 434/MUM/2019Status: DisposedITAT Mumbai27 January 2020AY 2010-112 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision to restrict the addition to 12.5% of bogus purchases. The Tribunal found no reason to deviate from the CIT(A)'s findings, which were based on judicial pronouncements.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order which restricted an addition on account of bogus purchases to 12.5%. The Assessing Officer had made a larger addition.

What were the issues?

Whether the addition on account of bogus purchases should be restricted to 12.5% as held by the CIT(A) or if a larger addition was warranted.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI

Before: SHRI R.C. SHARMA

For Appellant: Shri H.B. Gandhi
For Respondent: Shri Anoop Hiwase, Shri H.B. Gandhi
Hearing: 27/01/2020Pronounced: 27/01/2020

O R D E R PER R.C. SHARMA, ACCOUNTANT MEMBER

This is an appeal filed by the revenue against the order of CIT(A)— 6, Mumbai dated 30/11/2018 for A.Y.2010-11 in the matter of order passed u/s.143(3) r.w.s. 147 of the Income Tax Act, 1961.

2.

In this appeal revenue is aggrieved for restricting the addition on account of bogus purchases to the extent of 12.5%.

3.

I had gone through the orders of the authorities below and found that addition made on account of bogus purchases was restricted by CIT(A) to the extent of 12.5% after threadbare dealing with the observation and finding of the AO. The CIT(A) has applied the judicial pronouncements as laid down by Gujarat High Court in case of Simit P Sheth 356 ITR 451 and after considering the entire material on records and the facts of the case, restricted the addition to the extent of 12.5%. Nothing was produced before me to persuade me to deviate from the findings recorded by CIT(A) at para 4.3 to 4.3.6. Accordingly, I do not find any reason to interfere in the order of CIT(A).

4.

In the result, appeal of the revenue is dismissed.

Order pronounced in the open court on this 27/01/2020

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