R.S.CASTOR TRADING PRIVATE LIMITED,MUMBAI vs. INCOME TAX OFFICER-2(2), THANE

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ITA 1602/MUM/2018Status: DisposedITAT Mumbai12 September 2018AY 2010-114 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found that the quantitative statements were not rejected and considered the assessee's declared gross profit rates. It deemed it appropriate to restrict the disallowance to 3% for AY 2010-11 and 2% for AY 2011-12.

What were the facts?

The assessee, engaged in trading Castor Oil, faced additions for alleged bogus purchases in assessment years 2010-11 and 2011-12. The AO disallowed 12.5% of purchases, which was confirmed by the CIT(A) relying on a Gujarat High Court decision.

What were the issues?

Whether the disallowance of 12.5% on alleged bogus purchases was justified without rejecting quantitative statements and considering the assessee's GP rate.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D”, BENCH MUMBAI

Before: SHRI R.C.SHARMA, AM & SHRI RAM LAL NEGI, JM

For Appellant: Shri Ajay Singh
For Respondent: Shri Chaitanya Anjaria
Hearing: 10/09/2018Pronounced: 12/09/2018

IN THE INCOME TAX APPELLATE TRIBUNAL “D”, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI RAM LAL NEGI, JM 1603/Mum/2018 (Assessment Year :2010-11 & 2011-12) M/s. R.S.Castor Trading Pvt. Ltd., Vs. ITO – 2(2), 306, B-Wing, Mahavir Nagar-2 Wagle Industrial Estate Jai Ambe Mata Road Thane – 400 604 Bhayander – 401 105 PAN/GIR No.AACCR9048N (Appellant) .. (Respondent) Assessee by Shri Ajay Singh Revenue by Shri Chaitanya Anjaria Date of Hearing 10/09/2018 Date of Pronouncement 12/09/2018 आदेश / O R D E R PER R.C.SHARMA (A.M):

These are the appeals filed by the assessee against the order of CIT(A)-1, Mumbai dated 31/01/2018 for the A.Y.2010-11 & 2011-12 in the matter of order passed u/s.143(3) r.w.s. 147 of the IT Act.

2.

Rival contentions have been heard and record perused.

3.

In both these appeals, assessee is aggrieved for upholding addition of 12.5% in respect of alleged bogus purchases.

4.

Rival contentions have been heard and record perused.

5.

Briefly stated the facts of the case are that in these cases the returns of income, declaring total income of Rs 2,94,2007- (A.Y. 2010-11)

1603/Mum/2018 M.S. R.S.Castor Trading Pvt. Ltd., & Rs. 64,920/- (A. Y. 11-12), were filed on 2.10.2010 & 19.9.2011, respectively. The assessee is a Pvt. Ltd. Company, engaged in the business of trading in Castor Oil & its products. The assessment orders u/s 143(3) r.w.s 147 of the Act, for both these years i.e. A.Y. 2010-11 & 2011-12, were finalized on 31.03.2016, at total income of Rs. 78,44,820/- & Rs. 38,97,850/-, after making the additions of Rs. 75,50,187- & Rs. 38,32,926/-, respectively, on account of bogus purchases. Aggrieved with the orders of the AO, the assessee preferred appeals before CIT(A).

6.

By the impugned order, CIT(A) confirmed the action of the AO after following the decision of Gujarat High Court in the case of Simit P Sheth.

7.

It was argued by learned AR that assessee is dealing in trading of Caster Oil. The GP rate shown during the assessment year 2008-09 was 1.84% whereas in 2011-12, 2.77%. It was further contended by learned AR that neither AO nor the CIT(A) has provided copy of statement recorded of the concerned persons nor given opportunity of cross examination. Our attention was also invited to the quantitative statement filed with respect to the goods purchased and sold, wherein no fault was found by AO nor by CIT(A). He further contended that the facts in the case of Simit P Sheth were quite distinguishable from the facts of the assessee’s case.

8.

On the other hand, learned DR relied on the order of the lower authorities.

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