SHIAVAM MACHINE TOOLS,THANE vs. ACIT CIR 3, THANE

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ITA 1021/MUM/2017Status: DisposedITAT Mumbai03 July 2017AY 2009-102 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found the CIT(A)'s inconsistent stand unacceptable. It modified the order to restrict the disallowance to 25% of the bogus purchases, which was agreed to by the assessee's counsel.

What were the facts?

The assessee appealed against the confirmation of 100% disallowance of bogus purchases. The CIT(A) had passed a combined order for three years, disallowing 25% in two years and 100% in the current year.

What were the issues?

Whether the disallowance of bogus purchases should be 100% or a lesser percentage, and the consistency of the CIT(A)'s orders across assessment years.

AI-generated summary — verify with the full judgment below

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

Before: Shri Shamim Yahya

For Appellant: Shri Mayur J.Gosarani, Shri V.Janardhanan (Sr.DR)
For Respondent: Shri V.Janardhanan (Sr.DR)
Hearing: 29.06.2017Pronounced: 03.07.2017

O R D E R This appeal by the assessee is directed against the order of learned CIT (Appeals) dated 30.11.2016 and pertains to assessment year 2009- 2010.

2.

In this appeal, the assessee is aggrieved by the confirmation of 100% out of bogus purchases.

3.

I have heard both the Counsel and perused the records. The learned Departmental Representative referred to the decision of Hon’ble Gujarat High Court in the case of N.K.Industry v. DCIT [IT Appeal No.240 of 2003 dated 20.06.2016] wherein the Hon’ble Gujarat High Court had held that 100% out of bogus purchases should be added instead of 25% allowed by the ITAT.

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