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Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI
Before: SHRI C.N. PRASAD, JM & SHRI MANOJ KUMAR AGGARWAL, AM
आदेश /O R D E R
Per Manoj Kumar Aggarwal (Accountant Member) 1. The captioned appeal by assessee for Assessment Year [AY] 2010-11 contest the order of the Ld. Commissioner of Income-Tax (Appeals)-29 [CIT(A)], Mumbai, Appeal No.CIT(A)-29/IT-422/ITO-18(2)(1)/15-16 dated Kailash M.Jogani Assessment Year: 2010-11 16/08/2017 qua confirmation of certain additions on account of alleged bogus purchases. The assessment for impugned AY was framed by Ld. Income Tax Officer Ward-18(2)(1), Mumbai [AO] u/s 143(3) read with section 147 of the Income-tax Act,1961 on 26/02/2016 where the income of the assessee has been determined at Rs.6.90 Lacs as against returned income of Rs.3.05 Lacs filed by the assessee on 15/10/2010. The estimated additions @ 12.5% amounting to Rs.3,84,548/- is the sole subject matter of this appeal. 2.1 Facts leading to the same are that the assessee being resident individual engaged in the business of trading of computer systems and parts under proprietorship concern namely Appnet Solutions was subjected to reassessment proceedings for impugned AY. The reassessment proceedings were initiated pursuant to receipt of certain information from Sales Tax Department and DGIT (investigation) regarding dealers indulging in bogus purchase bills without doing any actual business and it was noted that the assessee stood beneficiary of such bogus purchase bills to the tune of Rs.30.76 Lacs from four such parties. Consequently statutory notice u/s 148 dated 02/04/2014 was issued to the assessee which was followed by notices u/s 143(2) and 142(1). 2.2 The assessee justified the purchases. However, notices u/s 133(6) issued by Ld. AO to confirm the transactions elicited no response which led the Ld. AO to make estimated additions against the same @ 12.5% which Kailash M.Jogani Assessment Year: 2010-11 resulted into impugned additions of Rs.3,84,548/-. The same, upon confirmation by Ld. CIT (A), is being contested before us.
The Ld. AR, at the outset, drew our attention to the fact that the assessee suffered similar disallowance in AY 2011-12 where the Ld. CIT(A) while confirming the addition @12.5% allowed concession of Gross Profit already declared by the assessee and therefore, similar view may be taken in the matter. The Ld. Departmental representative [DR] submitted that the additions were quite reasonable and just.
Upon due consideration, we find that similar issue arose in assessee’s case for AY 2011-12 where Ld.CIT(A) has allowed the concession of Gross Profit already declared by the assessee and the order has attained finality. Therefore, following the rule of consistency, taking the same view, we restrict the impugned additions to 12.5% with concession of Gross Profit Rate of 5.28% already declared by the assessee. Resultantly, the net additions are estimated @7.22% of Rs.30,76,381/- which comes to Rs.2,22,115/-. The order of Ld. CIT(A) stands modified to that extent.
Resultantly, the assessee’s appeal stands partly allowed.
Order pronounced in the open court on 22nd March , 2018.
Sd/- Sd/- (C. N. Prasad) (Manoj Kumar Aggarwal) �ाियक सद� / Judicial Member लेखा सद� / Accountant Member मुंबई Mumbai; िदनांक Dated : 22. 03.2018 Sr.PS:- Thirumalesh Kailash M.Jogani Assessment Year: 2010-11 आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. ��थ� / The Respondent 2. आयकर आयु�(अपील) / The CIT(A) 3. आयकर आयु� / CIT – concerned 4. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, मुंबई / DR, ITAT, Mumbai 5. गाड� फाईल / Guard File 6.