CIT v. Bholanath Poly Fab. Pvt. Ltd.

Hiraram Choudhary, Mumbai vs. ITO 19 (2)(5), Mumbai

In the result, appeals of the assessee are partly allowed

Bench: Shri C.N. Prasad, Hon'Ble

…uine from out of these (A.Ys: 2010-11 & 2011-12) Shri Hiraram T. Choudhary purchases. When the sales have been accepted as genuine the entire purchases cannot be treated as non-genuine. The Hon'ble Gujarat High Court in the case of Bholanath Polyfab Pvt. Ltd [355 ITR 290] held that when the assessee made purchases and sold the finished goods as a natural corollary not the entire amount covered under such purchases would be subject to tax but only the profit element embedded therein. Similar view has been taken by the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth [38 taxman.com 385]. Simply becaus…

Hiraram Choudhary, Mumbai vs. ITO 19 (2)(5), Mumbai

In the result, appeals of the assessee are partly allowed

Bench: Shri C.N. Prasad, Hon'Ble

…uine from out of these (A.Ys: 2010-11 & 2011-12) Shri Hiraram T. Choudhary purchases. When the sales have been accepted as genuine the entire purchases cannot be treated as non-genuine. The Hon'ble Gujarat High Court in the case of Bholanath Polyfab Pvt. Ltd [355 ITR 290] held that when the assessee made purchases and sold the finished goods as a natural corollary not the entire amount covered under such purchases would be subject to tax but only the profit element embedded therein. Similar view has been taken by the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth [38 taxman.com 385]. Simply becaus…

ITO 6(3)(1), Mumbai vs. Falcon Architectural Systems P Ltd., Mumbai

In the result, the appeal filed by the revenue is hereby ordered to be dismissed

…the CIT(Appeals) has decided the matter of controversy on the basis of the decision of Gujarat High Court in the case of CIT vs. Simit P. Sheth 356 ITR 451 (Guj.), and in the case of Hon‟ble Gujarat High Court CIT Vs. Bholanath Poly Fab Pvt. Ltd. reported in 355 ITR 290 (Guj), Vijaya Protein Vs. CIT 58 ITD 428 (Ahd). In the said mentioned law, it is well- settled that the profit ratio embedded to the transaction is required to be added to the income of the assessee. In the instant case, sale is not doubted, therefore, the CIT(A) has restricted the addition to the extent of 12.5% of the total bogus purchase in su…

Vaghasiya Exports, Mumbai vs. Pr. CIT- 32, Mumbai

The appeal stands allowed in terms of our above order

Bench: Hon’Ble Shri Saktijit Dey, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकर अपील सं./ I.T.A. No.2288/Mum/2019 (धििाारण वर्ा / Assessment Year: 2014-15) M/S. Vaghasiya Exports Pr. Cit-32 Ae-2080, 2Nd Floor C-11, 2Nd Floor, Pratyakshakar Bhavan बिाम Bharat Diamond Bourse Bandra Kurla Complex, Bandra (East) / Vs. Bandra Kurla Complex, Bandra (East) Mumbai- 400 051. Mumbai 400 051 Pan: Aaafa-2061-Q (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Assessee By : Dr. K.Shivram- Ld. Sr. Counsel Revenue By : Shri H.N.Singh – Ld. Cit-Dr सुनवाई की तारीख/ : 20/05/2021 Date Of Hearing घोषणा की तारीख / : 27/07/2021 Date Of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal () 1. By Way Of This Appeal, The Assessee Challenges The Invocation Of Revisional Jurisdiction U/S 263 By Ld. Principal Commissioner Of Income Tax-32, Mumbai (Pr. Cit) For Assessment Year (Ay) 2014-15 Vide Order Dated 18/03/2019. The Grounds Raised By The Assessee Read As Under:- 1. The Ld. Pr.Cit Erred In Passing Revision U/S.263 Of The Income Tax Act, 1961 (The “Act”) Revising Assessment Order Passed U/S.143(3) On The Issue Of Addition Of Alleged Bogus Purchases Without Appreciating That Assessment Order U/S. 143(3) Is Neither Erroneous Nor Prejudicial To The Interest Of Revenue As During Assessment Proceedings Ld. Ao Had Specifically Raised Queries Pertaining To Alleged Bogus Purchases & After Considering The Evidences Produced By The Appellant, Made

…aghasiya Exports Assessment Year: 2014-15 Ld.AO estimated an addition of 1.6% against these purchases. The decisions being relied upon include the decision of Hon’ble Gujarat High Court in Simit P. Sheth Vs. CIT (356 ITR 451); CIT Vs. Bholanath Poly Fab Ltd. (355 ITR 290); M/s. Vijay Proteins Ltd. Vs. CIT (58 Taxmann.com 44). It has been submitted before us that the assessment order has attained finality since no further appeal has been preferred by the assessee against the same. 5.1 Subsequently, upon perusal of case records, Ld. Pr. CIT opined that the order was erroneous and prejudicial to the interest of reve…

DCIT 8(2)(1), Mumbai vs. Shobha Ansar Jewllery Pvt. Ltd., Mumbai

Appeal of the Revenue is dismissed

Bench: Shri Mahavir Singh, Vp & Shri S. Rifaur Rahman, Am आमकय अऩीर िं./ Ita No. 2053/Mum/2019 (ननधाायण वर्ा / Assessment Year 2013-14) आमकय अऩीर िं./ Ita No. 2054/Mum/2019 (ननधाायण वर्ा / Assessment Year 2011-12) आमकय अऩीर िं./ Ita No. 2055/Mum/2019 (ननधाायण वर्ा / Assessment Year 2014-15) The Dy. Commissioner Of Income M/S Shobha Asar Jewellery Tax-8(2)(1), Aayarka Bhawan, Pvt. Ltd. Room No. 624, M.K. Rd., फनाभ/ 78-B, Sunshine Building, Mumbai-400 020 Dr. Annie Besant Road, Vs. Worli, Mumbai-400 018 (अऩीराथी / Appellant) (प्रत्मथी/ Respondent) स्थामी रेखा िं./Pan No. Allcs9865R अऩीराथी की ओय े/ Appellant By : Shri Bharat Andhle, Ar प्रत्मथी की ओय े/ Respondent By : None ुनवाई की तायीख / Date Of Hearing: 27.07.2021 घोर्णा की तायीख / Date Of Pronouncement: 27.07.2021 आदेश / O R D E R भहावीय स िंह, उऩाध्मक्ष के द्वाया / Per Mahavir Singh, Vp: These Appeals Of The Revenue Are Arising Out Of Order Of The Commissioner Of Income Tax (Appeals)]-14, Mumbai [In Short Cit(A)], In Appeal No. Cit(A)-14/It-104C/16-17, Cit(A)-14/It-

…bove, the method to be adopted must be which is approximately nearer to the truth, having regard to the facts and circumstances of the case and following the judicial decisions of the Hon’ble Gujarat High Court in the case of M/s. Bholenath Poly Fab Pvt. Ltd. 355 ITR 290 (Guj.) and simit P. Sheth 356 ITR 451 (Guj), I am of the considered opinion that 12.5% of the total amount of 1,99,81,707/- which comes to ₹24,97,713/- be taken an unproved/ non- ITA Nos.2053-2055/Mum/2019 M/s Shobha Asar Jewellery Pvt. Ltd.; 13-14 to 14-15 genuine purchases and added to the total income returned. Penalty proceedings under sectio…

ITO, Ward 3(4), Kalyan vs. Smt Sunita C Khandelwal, Mumbai

In the result, the appeal of the Revenue is dismissed

Bench: Shri Mahavir Singh, Vp & Shri S. Rifaur Rahman, Am आमकय अऩीर िं./ Ita No. 3505/Mum/2019 (ननधाायण वर्ा / Assessment Year 2010-11) The Income Tax Officer Smt. Sunita C. Khandelwal Ward-3(4), Kalyan Prop. Amita Steel 2N D Floor, Rani Mansion, Murbad Corporation, फनाभ/ Road, Kalyan-421301 E-1/5, Near Avery Bridge, Kalyan Shill Road, Midc, Vs. Dombivali (E)-421203 (अऩीराथी / Appellant) (प्रत्मथी/ Respondent) स्थामी रेखा िं./Pan No. Afgpk6867E अऩीराथी की ओय े/ Appellant By : Shri Bharat Andhale, Cit Dr प्रत्मथी की ओय े/ Respondent By : Shri Rajendra Deshpande, Ar ुनवाई की तायीख / Date Of Hearing: 26.07.2021 घोर्णा की तायीख / Date Of Pronouncement: 26.07.2021 आदेश / O R D E R भहावीय स िंह, उऩाध्मक्ष के द्वाया / Per Mahavir Singh, Vp: This Appeal Of The Revenue Is Arising Out Of Order Of The Commissioner Of Income Tax (Appeals)]-1, Mumbai [In Short Cit(A)], In Appeal No. 10352/2017-18 Vide Dated 19.03.2019. The Assessment Was Framed By The Income Tax Officer, Ward 3(4), Mumbai (In Short Ito/ Ao) For The A.Y. 2010-11 Vide Order Dated 15.12.2017 Under Section 143(3) Of The Income-Tax Act, 1961 (Hereinafter ‘The Act’). Smt. Sunita C. Khandelwal; Ay 10-11 2. The Only Issue In This Appeal Of Revenue Is As Regards To The Order Of Cit(A) Restricting The Disallowance Of Bogus Purchase/ Unproved Purchases At 12.5% By Estimating The Gross Profit Under Section 69C Of The Act Instead Of 100% Disallowance Made By Assessing Officer.

…e purchases but only the profit element embedded in such purchases can be added to the income of the assessee. Similar view has been taken by the Gujarat High Court in the cases of Vijay M Mistry Construction Pvt. Ltd (355 ITR 498), Bholanath Polyfab (P) Ltd (355 ITR 290) and Vijay Proteins Ltd (58 taxmann 44). Smt. Sunita C. Khandelwal; AY 10-11 7.3 From the submissions of the appellant it is observed that the facts of the case of the appellant are similar to that of Magnum Steels for AY 2010-11. The appellant during the course of assessment as well as appellate proceedings has submitted details of corresponding…

ACIT 17 (3), Mumbai vs. M/S Rashmi Bearing Co, Mumbai

In the result, appeal filed by the revenue is hereby dismissed

Bench: Shri Rajesh Kumar, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No. 5732/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2011-12) Acit-17(3) बिधम/ M/S. Rashmi Bearing Co. Room No.122, 1St Floor, 115, Room No.7, 2Nd Floor Vs. Kautilya Bhavan, G- Block Nagdevi Street, Mumbai- Bkc, Mumbai-400051. 400003. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaefr2683Q (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Ms. Smita Verma (Sr. Ar) Assessee By: Shri Nitesh Gandhi सुनवाई की तारीख / Date Of Hearing: 08/04/2021 घोषणा की तारीख /Date Of Pronouncement: 02/07/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Present Appeal Against The Order Dated 17.06.2019 Passed By The Commissioner Of Income Tax (Appeals)-28, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2011- 12. 2. The Revenue Has Raised The Following Grounds: - “1. "Whether On The Facts & Circumstances Of The Case & In Law, The Ld. Cit(A) Justified In Restricting The Addition Made By The Ao To 12.5% Of Bogus Purchases As Against The Addition Made At 17.04% Of The Bogus Purchases, Ignoring That There Was No Compliance To The Notices Issued U/S 133(6) By Ao & The Assessee Was Also Unable To Prove The Genuineness Of The. Purchases Either, By Producing The Suppliers For Examination Or By Furnishing

…ed to the income of the assessee. This decision was taken in view of the earlier decisions of the Gujarat High Court in the case of CIT v. Vijay M. Mistry Construction Ltd. [20131 355 ITR 498 (Guj) and in the case of CIT v. Bholanath Poly Fab (P.) Ltd. (20131 355 ITR 290 (Guj). The Court also held that if the entire purchases were wholly bogus and there was a finding of fact on record that no purchases were made at all, the counsel for the Revenue would be justified in arguing that the entire amount of such bogus purchases should be added back to the income of the assessee. The High Court finally concluded that t…

Pr. CIT- 9, Mumbai vs. Amrin Construction Pvt. Ltd., Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blepr.Cit -9 V. M/S. Amrin Construction Pvt. Ltd., 8, Sagar Tower, Fair Deal Road {Income Tax Officer – 9(1)(2)} Room No. 205, 2Nd Floor Off. S.V.Road, Jogeshwari(W) Mumbai - 400102 Aayakar Bhavan, M.K. Road Mumbai - 400020 Pan: Aaeca3216B (Appellant) (Respondent) Assessee By : None Department By Shri Brajendra Kumar

…the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Sheth [356 ITR 451] restricted the disallowance to 12.5% of the non-genuine purchases of ₹.3,54,863/-, while holding so, the Ld.CIT(A) observed as under: - “6.1.26. In Bholanath Polyfab Pvt. Ltd. 355 ITR 290 (Guj), the facts of the case were that the assessee was engaged in the business of trading in finished fabrics. For the A.Y. 2005-06, the Assessing Officer held that the purchases worth Rs.40,69,546/- were unexplained. He, therefore, disallowed such expenditure claimed by the assessee and computed the total income of Rs.41,10,187/-. The issue was…

Shri Mahendranath Trivedi, Mumbai vs. JCIT - 18(2), Mumbai

In the result, appeal of the assessee is partly allowed

Bench: Shri C.N. Prasad, Hon'Bleshri S. Rifaur Rahman, Hon'Bleshri Mahendranath Trivedi V. Jcit -18(2) 221, Bussa Industrial Estate Piramal Chambers, Parel Prabhadevi, Mumbai - 400025 Mumbai – 400 012 Pan: Aaapt6043J (Appellant) (Respondent) Assessee By : None Department By : Shri Bharat Andhle

…not in dispute that sales have been accepted as genuine from out of these purchases. When the sales have been accepted as genuine the entire purchases cannot be treated as non-genuine. The Hon'ble Gujarat High Court in the case of Bholanath Polyfab Pvt. Ltd [355 ITR 290] held that when the assessee made purchases and sold the finished goods as a natural corollary not the entire amount covered under such purchases would be subject to tax but only the profit element embedded therein. Similar view has been taken by the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth [356 ITR 451]. Simply because the…

Shri. Ravindra Bhaskar Deshmukh, Kalyan vs. Dy. CIT, Panvel

In the result, the appeals filed by the assessee are partly allowed

Bench: Shri Shamim Yahya, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. Nos. 1951 & 1952/Mum/2019 (निर्धारण वर्ा / Assessment Years: 2010-11 & 2011-12) Shri Ravindra Baskar बिधम/ Dy. Commissioner Of Deshmukh L/H Neeta Ravindra Income Tax Panvel Circle, Vs. Deshmukh Panvel, Dist-Raigad. C/O Sh. Satyajit Zunjarrao 1003/2, Indraprastha Society, Adharwadi Chowk, Kalyan West-421301. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Ahcpd2323Gs (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: None Revenue By: Shri Bharat Andhle (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 02/03/2021 घोषणा की तारीख /Date Of Pronouncement: 20/05/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Above Mentioned Appeals Against The Order Dated 04.02.2019 Passed By The Commissioner Of Income Tax (Appeals) -2, Thane [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Ys. 2010-11 & 2011-12. Ita. No.1951/M/2019 2. The Assessee Has Filed The Present Appeal Against The Order Dated 04.02.2019 Passed By The Commissioner Of Income Tax (Appeals) -2, Thane [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2010-11. Ita Nos. 1951 & 1952/M/2019 A.Ys.2010-11 & 2011-12 3. The Assessee Has Raised The Following Grounds: -

…e. There are number of decisions in which it is specifically held that in case of bogus purchase the addition is liable to be justifiable to the extent of profit element. Some judgements are hereby mentioned below. (i) CIT Vs. Bholanath Poly Fab Ltd. (2013) 355 ITR 290 (Guj). (HC) (ii) CIT Vs. Simit P. Sheth (2013) 356 ITR 451 (Guj) (iii) CIT Vs. Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) (iv) ITO Vs. Permanand (2007) 107 TTJ 395 (Jd) A.Ys.2010-11 & 2011-12 (v) Shri Madhukant B. Gandhi Vs. ITO ITA No. 1950/M/2009 Bench „B‟ dt. 23.02.2010 (AY 2005-06) (Mum)(Trib) (vi) Sanjeev Woolen Mills Vs. CIT (2005)…

ITO 21 (3)(3), Mumbai vs. Shashikant Kumar Arora, Mumbai

In the result, the appeal filed by the revenue is hereby dismissed

Bench: Shri Shamim Yahya, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.4991/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2009-10) Ito - 21(3)(3) बिधम/ Shashikant R. Kumar Arora R. No. 211, 2Nd Floor, G-40, Shalimar Industrial Vs. Piramal Chambers Lalbaug, Estate Nr. King Cirlce Rly. Mumbai-400012. Station, Matunga, Mumbai- 400019. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabpa1315M (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri Sanjay J. Sethi (Dr) Assessee By: None सुनवाई की तारीख / Date Of Hearing: 28/01/2021 घोषणा की तारीख /Date Of Pronouncement: 08/04/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Present Appeal Against The Order Dated 28.05.2019 Passed By The Commissioner Of Income Tax (Appeals) -33, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2009- 10. 2. The Revenue Has Raised The Following Grounds: -

…that the CIT(Appeals) has decided the matter of controversy on the basis of the decision of Gujarat High Court in the case of CIT vs. Simit P. Sheth 355 ITR 290 (Guj.), Hon‟ble Gujarat High Court in the case of CIT Vs. Bholanath Poly Fab Pvt. Ltd. reported in 355 ITR 290 (Guj), Vijaya Protein Vs. CIT 58 ITD 428 (Ahd). In the said mentioned law, it is well- settled that the profit ratio embedded to the transaction is required to be added to the income of the assessee. In the instant case, sale is not doubted, therefore, the CIT(A) has restricted the addition to the extent of 12.5% of the total bogus purchase in su…

DCIT Cen Cir 4(2), Mumbai vs. Mitesh Ilesh Gadhia, Mumbai

In the result, the appeal filed by the revenue is hereby dismissed

…le view. Thus, no substantial question law arises for our consideration. 9. Appeal dismissed." 5.8 In this regard, it will be apt to refer to certain decisions dealing with this issue. The Hon'ble Gujarat High Court in the case of Bholanath Poly Fab Pvt. Ltd. 355 ITR 290 (Gui) was battling with the finding of Hon’ble ITAT that purchases were made from bogus parties. The Tribunal had held that through 7 A.Y.2010-11 purchases were made from bogus parties, nevertheless, the purchases were not as such bogus as the entire quantity of opening stock, purchases and sales were tallying and hence, only the profit margin e…

M/S Kumudchand D Mehta, Mumbai vs. ACIT Circle-19(2), Mumbai

In the result, the appeal filed by the assessee is hereby partly allowed

…en/grey market and accepted the bills from the Bhanwarlal Jain group concerns. 4.2.4. In this regard, it is apt to refer to certain discussions dealing with similar issue. The decision of Hon'ble Gujarat High Court in the case of Bholanath Poly Fab Pvt. Ltd. 355 ITR 290 (Guj.) where the Hon'ble Court was dealing with the finding of Hon'ble ITAT that purchases were made from bogus parties, nevertheless the purchases themselves were not bogus as the entire quantity of 6 A.Y.2009-10 opening stock. purchases and sales were tallying and hence, only the profit margin embedded in such amount be subjected to tax. The Ho…

DCIT - 11(1)(2), Mumbai vs. M/S. Samanta Organics P. Ltd., Mumbai

In the result, the appeal filed by the revenue is hereby dismissed

Bench: Shri Shamim Yahya, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. Nos.3229 To 3231/Mum/2019 (निर्धारण वर्ा / Assessment Years: 2009-10, 2010-11 & 2011-12) Dcit-11(1)(2) बिधम/ M/S. Samanta Organics Pvt. Room No.1, Ground Floor, Ltd. Vs. M. K. Road, Aayakar 194, Arvind Chambers, Off, Bhavan, Mumbai-400020. Western Express Highway, Andheri (E), Mumbai- 400069. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aadcs2099B (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri T. S. Khalsa (Sr. Ar) Assessee By: None सुनवाई की तारीख / Date Of Hearing: 22/02/2021 घोषणा की तारीख /Date Of Pronouncement: 07/04/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Above Mentioned Appeals Have Been Filed By The Revenue Against The Different Order Passed By The Commissioner Of Income Tax (Appeals)- 18, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Ys.2009-10 To 2011-12

…which do not occasion failure of justice are not allowed to defeat the ends of justice. Principles of natural justice are but the means to achieve the end of Justice. They cannot be perverted to achieve from opposite end.” 5.2.25 In BholanathPolyfab Pvt. Ltd. 355 ITR 290 (Guj), the facts of the case were that the assessee was engaged in the business of trading in finished fabrics. For the A.Y. 2005-06, the Assessing Officer held that the purchases worth Rs.40,69,546/were unexplained. He, therefore, disallowed such expenditure claimed by the assessee and computed the total income of Rs.41,10,187/-. The issue was c…

Pragaram J Patel, Mumbai vs. ITO 19 (2)(5), Mumbai

The appeal stands dismissed

Bench: Hon’Ble Shri Saktijit Dey, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकरअपील सं./ I.T.A. No.5569/Mum/2019 (धििाारण वर्ा / Assessment Year: 2011-12) Pragaram J. Patel Ito-19(2)(5) 67/26, 2Nd Floor, Kholsawala Bldg. Matru Mandir बिाम/ Dr. M.G. Mahimtura Marg Mumbai – 400 020. Vs. 3Rd Kumbharwada Mumbai - 400 004. स्थायीलेखासं./जीआइआरसं./Pan/Gir No. Aacpp-1462-B (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Assessee By : None Revenue By : Ms. Smita Verma – Ld. Sr. Dr सुनवाई की तारीख/ : 24/03/2021 Date Of Hearing घोषणा की तारीख / 05/04/2021 : Date Of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal () 1. At The Time Of Hearing, None Appeared For Assessee. However, The Material On Record Was Sufficient For Disposal Of The Appeal. The Ld. Dr Pleaded For Dismissal Of The Appeal. The Assessee Is Aggrieved By Confirmation Of Certain Addition On Account Of Alleged Bogus Purchases Vide Order Dated 20/06/2019 As Passed By Ld. Commissioner Of Income- Tax (Appeals)-4, Mumbai, [In Short Referred To As ‘Cit(A)’], Appeal No.Cit(A)-4/Ito-19(2(5)/E-Filing-51/2018-19. Our Adjudication To The Subject Matter Of Appeal Would Be As Given In Succeeding Paragraphs.

…without actual delivery of goods. Since the sales were not in doubt, the goods must have been procured from grey market. Therefore, following the ratio laid down by Hon’ble Gujarat High Court in Simit P.Sheth 356 ITR 451 and Bholanath Polyfabs Pvt. Ltd. Ltd. 355 ITR 290, Ld. AO estimated an addition of 12.5% against these purchases. 3. The Ld. CIT(A), after considering assessee’s written submissions and factual matrix, upheld the action of Ld. AO. Aggrieved, the assessee is in further appeal before us. 4. Upon perusal of impugned order, we find that Ld. CIT(A) has clinched the issue in the right perspective. The…

Mr. Ramesh Dhawalchand Jain, Mumbai vs. ITO 19(3)(1), Mumbai

Appeals stands dismissed

Bench: Hon’Ble Shri Saktijit Dey, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकरअपील सं./ I.T.A. No.5665/Mum/2018 (धििाारण वर्ा / Assessment Year: 2009-10) Ito-19(3)(1) Shri Ramesh Dhawalchand Jain बिाम/ 89,2Nd Pathan Street Matru Mandir 2Nd Floor, Room No.202 5Th Kumbharwada Vs. Tardeo Road, Mumbai – 400 007. Mumbai – 400 004. स्थायीलेखासं./जीआइआरसं./Pan/Gir No.Abvpj-7944-C (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : & आयकरअपील सं./ I.T.A. No.4512/Mum/2019 (धििाारण वर्ा / Assessment Year: 2009-10) Shri Ramesh Dhawalchand Jain Ito-19(3)(1) 89,2Nd Pathan Street बिाम/ Matru Mandir, 2Nd Floor 5Th Kumbharwada Room No.202,Tardeo Road Vs. Mumbai – 400 004. Mumbai – 400 007. स्थायीलेखासं./जीआइआरसं./Pan/Gir No.Abvpj-7944-C (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Assessee By : Shri Rajiv Khandelwal-Ld. Sr. Ar Revenue By : Ms. Smita Verma – Ld. Sr. Dr सुनवाई की तारीख/ : 22/03/2021 Date Of Hearing घोषणा की तारीख / : 05/04/2021 Date Of Pronouncement आदेश / O R D E R Per Manoj Kumar Aggarwal ()

…rnover of Rs.298.22 Lacs. 5. The Ld. CIT(A), after considering assessee’s submissions and factual matrix, opined that the assessee miserably failed to lead evidence. Going by the ratio of decision of Hon’ble Gujarat High Court in Bholanath Polyfabs Pvt. Ltd. (355 ITR 290) as well as Simit P.Sheth (356 ITR 451), Ld. CIT(A) estimated additions of 12.5% against these purchases. The said adjudication has given rise to cross-appeals before us. 6. Upon careful consideration of factual matrix, we find that the assessee was engaged in trading activity and there could be no sale without actual purchase of goods. The asse…

ITO -19(3)(1), Mumbai vs. Ramesh Dhawalchand Jain, Mumbai

Appeals stands dismissed

Bench: Hon’Ble Shri Saktijit Dey, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकरअपील सं./ I.T.A. No.5665/Mum/2018 (धििाारण वर्ा / Assessment Year: 2009-10) Ito-19(3)(1) Shri Ramesh Dhawalchand Jain बिाम/ 89,2Nd Pathan Street Matru Mandir 2Nd Floor, Room No.202 5Th Kumbharwada Vs. Tardeo Road, Mumbai – 400 007. Mumbai – 400 004. स्थायीलेखासं./जीआइआरसं./Pan/Gir No.Abvpj-7944-C (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : & आयकरअपील सं./ I.T.A. No.4512/Mum/2019 (धििाारण वर्ा / Assessment Year: 2009-10) Shri Ramesh Dhawalchand Jain Ito-19(3)(1) 89,2Nd Pathan Street बिाम/ Matru Mandir, 2Nd Floor 5Th Kumbharwada Room No.202,Tardeo Road Vs. Mumbai – 400 004. Mumbai – 400 007. स्थायीलेखासं./जीआइआरसं./Pan/Gir No.Abvpj-7944-C (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Assessee By : Shri Rajiv Khandelwal-Ld. Sr. Ar Revenue By : Ms. Smita Verma – Ld. Sr. Dr सुनवाई की तारीख/ : 22/03/2021 Date Of Hearing घोषणा की तारीख / : 05/04/2021 Date Of Pronouncement आदेश / O R D E R Per Manoj Kumar Aggarwal ()

…rnover of Rs.298.22 Lacs. 5. The Ld. CIT(A), after considering assessee’s submissions and factual matrix, opined that the assessee miserably failed to lead evidence. Going by the ratio of decision of Hon’ble Gujarat High Court in Bholanath Polyfabs Pvt. Ltd. (355 ITR 290) as well as Simit P.Sheth (356 ITR 451), Ld. CIT(A) estimated additions of 12.5% against these purchases. The said adjudication has given rise to cross-appeals before us. 6. Upon careful consideration of factual matrix, we find that the assessee was engaged in trading activity and there could be no sale without actual purchase of goods. The asse…

DCIT 12(2)(1), Mumbai vs. D R Coats Ink and Resins P.Ltd, Mumbai

In the result, appeal filed by the revenue is hereby dismissed and cross-objection filed by the assessee is also hereby dismissed

Bench: Shri Rajesh Kumar, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.4858/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2011-12) बिधम/ M/S. D. R. Coats Ink & Dcit 12(2)(1) Room No. 223, 2Nd Floor, Resins Pvt. Ltd. Vs. 230 New Sonal Link Aayakar Bhavan, M. K. Industrial, Building No.2, Road, Mumbai-400020. Estate Link Road, Malad (W), Mumbai-400064. Co. No.240/Mum/2018 (Arising Out Of Ita. No. 4858/Mum/2017) (निर्धारण वर्ा / Assessment Year: 2011-12) M/S. D. R. Coats Ink & बिधम/ Dcit 12(2)(1) Resins Pvt. Ltd. Room No. 223, 2Nd Floor, Vs. 230 New Sonal Link Aayakar Bhavan, M. K. Industrial, Building No.2, Road, Mumbai-400020. Estate Link Road, Malad (W), Mumbai-400064 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabcd8645A (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri Bharat Andhale (Sr. Ar) Assessee By: Shri M. Subramaniam सुनवाई की तारीख / Date Of Hearing: 06/01/2021 घोषणा की तारीख /Date Of Pronouncement: 01/04/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue As Well As Assessee Have Filed The Above Mentioned Appeal As Well As Cross Objection Against The Order Dated 28.04.2017 Passed

…epartment.” 6. On appraisal of the above mentioned finding, we find that the CIT(A) has decided the matter of controversy on the basis of the decision in ITA. No.4858/M/17 CO. No. 240/M/2018 A.Y. 2011-12 the case of (i) CIT Vs. Bholanath Poly Fab Ltd. (2013) 355 ITR 290 (Guj) (ii) CIT Vs. Simit P. Sheth (2013) 356 ITR 451 (Guj) (iii) CIT Vs. Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) (iv) ITO Vs. Permanand (2007) 107 TTJ 395 (Jd) (Trib) (v) Shri Madhukant B. Gandhi Vs. ITO ITA. No. 1950/M/2009 Bench „B‟ Dated 23.02.2010 (AY 2005-06) & (vi) Sanjeev Woolen Mills Vs. CIT (2005) 279 ITR 434 (SC). The CIT(A)…

Income Tax Officer-20(1)(5), Mumbai vs. Habibullah M. H. Mullajiwala(Prop.M/S.Lucky Supply Agency), Mumbai

In the result, both the appeals filed by the revenue are hereby dismissed

Bench: Shri Amarjit Singh, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं/ I.T.A. Nos.5373 & 5374/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2011-12) Income Tax Officer 20(1)(5) बिधम/ Shri Habibullah M. H. Room No.121, 1St Floor, Mullajiwala (Prop. M/S. Vs. Piramal Chambers, Parel, Lucky Supply Agency) Mumbai-400012. Shop No. 8, Yusuf Manzil, 2, Sofia Zuber Road, Opp. Nagpada Police Station, Mumbai-400008. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Afdpm7661R (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri Gurbinder Singh (Dr) Assessee By: None सुनवाई की तारीख / Date Of Hearing: 21/12/2020 घोषणा की तारीख /Date Of Pronouncement: 16/03/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Above Mentioned Appeals Against The Different Order Passed By The Commissioner Of Income Tax (Appeals) -32, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2011- 12. Ita. No.5374/Mum/2017 2. The Revenue Has Filed The Present Appeal Against The Order Dated 15.05.2017 Passed By The Commissioner Of Income Tax (Appeals) -32

…cted to 3% on tainted purchases only (i.e. where no confirmation was obtained or doubtful in nature) 5.4 An identical issue came up before the Hon'ble High Court of Gujarat in the case of Commissioner of Income-tax V. Bholanath Polv Fab Pvt. Ltd. reported in 355 ITR 290 GuJ. The assessee was engaged in the business of trading in finished fabrics. The AO disallowed purchase as bogus unexplained. The CIT(A) confirmed the action of the AO. The issue was carried in appeal before the Hon'ble tribunal which concurred with the finding of the revenue authorities below that such purchase was made from bogus parties. Afte…