RAGHAVENDRA P. JOSHI (PROP.M/S.JUPITER ENGINEERING WORKS),MUMBAI vs. ITO-3(2), MUMBAI

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ITA 4227/MUM/2018Status: DisposedITAT Mumbai30 August 2019AY 2009-103 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that 100% disallowance for bogus purchases is not justified when sales are not doubted. However, considering the purchases were made from the grey market, a partial disallowance is appropriate.

What were the facts?

The assessee, engaged in engineering job works, faced a 100% disallowance on account of alleged bogus purchases of Rs. 7,27,940/-. This disallowance was confirmed by the CIT(A) based on information from the sales tax department.

What were the issues?

Whether 100% disallowance of purchases is sustainable when sales are not doubted, and if not, what is the appropriate disallowance for grey market purchases.

Which sections of the Income-tax Act were involved?

Not explicitly mentioned in the provided text

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” Bench, Mumbai

Before: Shri Shamim Yahya (AM)

Hearing: 10.06.2019Pronounced: 30.08.2019

बनाम/ Raghavendra P. Joshi ITO 3(2) (Prop. M/s. Jupiter Room No. 04, 3 Wing, Engineering Works) Gala Ashar IT Park, 6 th Floor, v. No.5, Pramila Industrial Wagle Indl. Estate, Estate, Plot No. 268, Thane 400604 Upvan, Thane 400606 PAN: AAFFS6604P (Appellant) .. (Respondent) Assessee by: None Revenue by: Shri. Chaitanya Anjaria सुनवाई की तारीख /Date of Hearing : 10.06.2019 घोषणा की तारीख /Date of Pronouncement : 30.08.2019 आदेश / O R D E R

PER SHAHMIM YAHYA, Accountant Member:

1.

This is an appeal by the assessee wherein the assessee is aggrieved that the learned CIT ‘A’ has erred in sustaining 100% disallowance on account of bogus purchases amounting to Rs. 7,27,940/-.

2.

Brief facts of the case are that assessee is engaged in business of engineering jobs works. The information was received from the sales tax Department that assessee has engaged in bogus purchases. The assessment was accordingly reopened. 3. The assessing officer in this case has made 100% addition on account of bogus purchases amounting to Rs. 7,27,940/-. Upon assessees appeal Ld. CIT(A) confirmed the same.

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