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Income Tax Appellate Tribunal, “F” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEY, JM & SHRI MANOJ KUMAR AGGARWAL, AM
Per Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year [AY] 2011-12 contest the order of the Ld. Commissioner of Income-Tax (Appeals)-21 [CIT(A)], Mumbai, Appeal No.CIT(A)-21/ITO-13(3)(2)/IT-84/2016-17 dated 26/05/2017 qua confirmation of certain additions on account of alleged bogus purchases. The assessment for impugned AY was framed by Ld. Deputy Commissioner of Income Tax Central-13(3)(2), Mumbai ITA.No.4679/Mum/2017 Vardhman Remedies Private Limited Assessment Year-2011-12 [AO] u/s 143(3) read with section 147 of the Income Tax Act, 1961 wherein the assessee has been saddled with addition of Rs.1,18,755/- on account of alleged bogus purchases stated to be made from a suspicious dealer pursuant to receipt of certain information from Sales Tax Department, Maharashtra. During impugned AY, the assessee was engaged in the business of manufacturing & trading of pharmaceutical products.
The original return of income was initially assessed u/s 144 read with Section 147 of the Income Tax Act, 1961 on 27/02/2015 at Rs.60,42,954/- wherein the assessee was saddled with similar additions against alleged bogus purchases stated to be made from four such suspicious parties. The case was again subjected to re-assessment proceedings since it was found that the assessee made another purchase of Rs.1,18,755/- from an entity namely Shree Trading Corporation. This addition of Rs.1,18,755/- is the sole subject matter of this appeal. The Ld. first appellate authority has already dismissed the assessee’s appeal, against which the assessee is in further appeal before us.
The only plea raised by Ld. Authorized Representative for Assessee [AR], Shri Bhupendra Shah, was the fact that the assessee contested the additions as made in first reassessment proceedings before this Tribunal vide dated 29/09/2017 wherein the additions have been restricted to 10%. The Ld. DR could not controvert the aforesaid fact.
In view of the admitted position, since a view has already been taken by the Tribunal in assessee’s own case on identical facts, taking ITA.No.4679/Mum/2017 Vardhman Remedies Private Limited Assessment Year-2011-12 the same view, we restrict the impugned additions to 10% of Rs.1,18,755/- which comes to Rs.11,876/-. The balance addition stands deleted.
The assessee’s appeal stand partly allowed.
Order pronounced in the open court on 05th September, 2018.