CIT v. Bholanath Poly Fab. Pvt. Ltd.

Evas Machineries Pvt. Ltd., Mumbai vs. ACIT 12(2)-1, Mumbai

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

…of decisions in which it has been specifically held that in case of bogus purchase the 3 A.Y.2009-10 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) (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) 279 ITR 434) (SC) 5.…

DCIT Cirlce-3, Thane vs. Shri. Shreekumar Janardan Unnithan, Thane

In the result these appeals filed by the revenue stand dismissed

…ri Sreekumar Janardhan Unnithan 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). Considering the facts of case and in view of various decisions as discussed above, it is held that only profit element of 18.47% embedded in the bogus purchases of Rs 3,71,540/-, that is Rs 68,623/- is to be added to the income of the appellant. Accordingly the disallowance of Rs 68,623/- is confirmed and…

Mohd Ismail I A Shaikh, Mumbai vs. ITO 26(3)(4), Mumbai

In the result, the appeal of the assessee is partly allowed

Bench: Shri Vikas Awasthy & Shri Rajesh Kumarassessment Year: 2009-10 M/S. Mohd. Ismail I.A. Ito 26(3)(4) Shaikh, Mumbai (Prop. Sarco Wire Traders) Shop No.21, 4Th Lane, Vs. Taar Bazar, Kurla Andheri Road, Sakinaka, Mumbai – 400 072 Pan: Akhps5579E (Appellant) (Respondent) Present For: Assessee By : None Revenue By : Shri Akhtar H. Ansari, D.R. Date Of Hearing : 01.10.2020 Date Of Pronouncement : 27.10.2020 O R D E R

…he decisions of the Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth (2013) 356 ITR 451 (Guj) , CIT vs. Vijay M. Mistry Construction Ltd. (2013) 355 3 M/s. Mohd. Ismail I.A. Shaikh ITR 498 (Guj) and CIT vs. Bholanath Poly Fab (P.) Ltd. (2013) 355 ITR 290 (Guj) and by holding that it is only the profit element which has to be assessed to tax and not the entire purchases. 6. After hearing the Ld. D.R and perusing the material on record, we observe that the assessee is a scrap dealer and GP during the year was 4.04%. In principle ,we are in agreement with the finding of the Ld. CIT(A) that it is on…

ITO-6(1)(1), Mumbai vs. M/S. Aeroflex Fittings Pvt. Ltd., Mumbai

In the result, appeals of the Revenue are dismissed

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

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC”, MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER ITA NOs. 1686 & 1687/MUM/2019 (A.Ys: 2010-11 & 2011-12) Income Tax Officer – 6(1)(1) v. M/s. Aeroflex Fittings Pvt. Ltd., Room No. 503, 5th Floor 40-E, Municipal compound Aayakar Bhavan, M.K. Road K.K. Marg, Jacob circle Mumbai – 400 020 Mumbai – 400011 PAN: AAECA9448F (Appellant) (Respondent) Assessee by : None Department by : Ms. Arju Garodia Date of Hearing : 21.09.2020 Date of Pronouncement : 29.09.2020 O R D E R PER C.N. PRASAD (JM) 1. These appeals are filed by the revenue against different ord…

Pavapuri Metals & Tubes, Mumbai vs. ITO 19 (2)(5), Mumbai

In the result, appeal of the assessee is partly allowed

Bench: Shri C.N. Prasad, Hon'Ble & Shri Rajesh Kumar, Hon'Blem/S. Pavapuri Metals & Tubes V. Income Tax Officer 15, Vimal Darshan Bldg., Ward – 19(2)(5) 9Th Khetwadi Lane Room No. 210, 2Nd Floor Mumbai – 400 004 Matru Mandir Tardev Road Pan: Aagfp4994G Mumbai – 400 007 (Appellant) (Respondent) Assessee By : Shri Akash Kumar Department By : Shri R. Bhoopathi

…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 4 M/s. Pavapuri Metals & Tubes 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, Ward- 1(4), Mumbai vs. Girijashankar Bishwamber Choudhary, Mumbai

In the result, appeals filed by the revenue are dismissed and cross

Bench: Shri C.N. Prasad, Hon'Ble & Shri Rajesh Kumar, Hon'Ble

…of these purchases. When the sales have been accepted as genuine the entire purchases cannot be treated as non-genuine. The CO.NO. 279 & 280/Mum/2019 Shri Girijashankar Bishwamber Choudhary 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…

ITO, Ward- 1(4), Mumbai vs. Girijashankar Bishwamber Choudhary, Mumbai

In the result, appeals filed by the revenue are dismissed and cross

Bench: Shri C.N. Prasad, Hon'Ble & Shri Rajesh Kumar, Hon'Ble

…of these purchases. When the sales have been accepted as genuine the entire purchases cannot be treated as non-genuine. The CO.NO. 279 & 280/Mum/2019 Shri Girijashankar Bishwamber Choudhary 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…

ITO-6(1)(1), Mumbai vs. M/S. Aeroflex Fittings Pvt. Ltd., Mumbai

In the result, appeals of the Revenue are dismissed

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

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC”, MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER ITA NOs. 1686 & 1687/MUM/2019 (A.Ys: 2010-11 & 2011-12) Income Tax Officer – 6(1)(1) v. M/s. Aeroflex Fittings Pvt. Ltd., Room No. 503, 5th Floor 40-E, Municipal compound Aayakar Bhavan, M.K. Road K.K. Marg, Jacob circle Mumbai – 400 020 Mumbai – 400011 PAN: AAECA9448F (Appellant) (Respondent) Assessee by : None Department by : Ms. Arju Garodia Date of Hearing : 21.09.2020 Date of Pronouncement : 29.09.2020 O R D E R PER C.N. PRASAD (JM) 1. These appeals are filed by the revenue against different ord…

ITO-17(1)(1), Mumbai vs. Mr. Abhay Kantilal Shah, Mumbai

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

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2011-12

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “A” MUMBAI BEFORE SHRI SAKTIJIT DEY (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) Assessment Year: 2011-12 ITO-17(1)(1) Mr. Abhay Kantilal Shah Room No.115, 1st Floor Vs. 501, Giriraj Building Aaykar Bhawan Sant Tukaram Road M.K.Road Mumbai-400 009 Mumbai-400 020 PAN No. AAGPS3930H Appellant Respondent Assessee by : None Revenue by : Shri Uodal Raj Singh (DR) Date of Hearing : 21/09/2020 Date of pronouncement : 24/09/2020 ORDER PER N.K. PRADHAN, A.M. This is an appeal filed by the revenue. The relevant assessment year is 2011-12. The appeal…

ITO Ward 1 (5), Thane vs. Shri. Deju Gudda Bolar, Thane

In the result, appeal filed by the revenue for assessment year 2009-10,

Bench: Shri M Balaganesh (Am) & Shri Ram Lal Negi (Jm)

…ned purchases. The Ld. DR further submitted that since the AO had estimated the profits on such transactions by following the ratio laid down by the Hon’ble Gujarat High Court in the case of CIT vs. Simit P Seth, 356 ITR 290, M/s Bholenath Poly Fab Pvt. Ltd., 355 ITR 290 and Vijay M. Mistry Construction Ltd. 355 ITR 498 and the decision of the Ahmadabad Bench of the ITAT in the case of Vijay Proteins, 58 ITD 482, the Ld CIT(A) ought to have confirmed the penalties levied by the AO. 5. On the other hand the Ld counsel for the assessee supporting the order passed by the Ld. CIT(A) submitted that since the AO had ma…

Ilesh Amrutlal Gadhia, Mumbai vs. DCIT CC-4(2), Mumbai

Appeals stand partly allowed to the extent indicated in the order

Bench: Hon’Ble Shri Vikas Awasthy, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am

…r our consideration. 9. Appeal dismissed," Shri Ilesh Amrutlal Gadhia AYs: 2009-10 & 2010-11 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 (Guj) was battling with the finding of Hon'ble ITAT that purchases were made from bogus parties. The Tribunal had held that though 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 embedded in such…

Shri. Ilesh Amrutlal Gadhia, Mumbai vs. DCIT-4(2), Mumbai

Appeals stand partly allowed to the extent indicated in the order

Bench: Hon’Ble Shri Vikas Awasthy, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am

…r our consideration. 9. Appeal dismissed," Shri Ilesh Amrutlal Gadhia AYs: 2009-10 & 2010-11 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 (Guj) was battling with the finding of Hon'ble ITAT that purchases were made from bogus parties. The Tribunal had held that though 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 embedded in such…

DCIT- C.Circle, 4(2), Mumbai vs. Ilesh Amrutlal Gadhia, Mumbai

Appeals stand partly allowed to the extent indicated in the order

Bench: Hon’Ble Shri Vikas Awasthy, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am

…r our consideration. 9. Appeal dismissed," Shri Ilesh Amrutlal Gadhia AYs: 2009-10 & 2010-11 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 (Guj) was battling with the finding of Hon'ble ITAT that purchases were made from bogus parties. The Tribunal had held that though 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 embedded in such…

DCIT- C.Circle, 4(2), Mumbai vs. Ilesh Amrutlal Gadhia, Mumbai

Appeals stand partly allowed to the extent indicated in the order

Bench: Hon’Ble Shri Vikas Awasthy, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am

…r our consideration. 9. Appeal dismissed," Shri Ilesh Amrutlal Gadhia AYs: 2009-10 & 2010-11 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 (Guj) was battling with the finding of Hon'ble ITAT that purchases were made from bogus parties. The Tribunal had held that though 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 embedded in such…

ACIT 24 (2), Mumbai vs. Juneja Global, Mumbai

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

Bench: Shri Amarjit Singh, Jm & Shri N. K. Pradhan, Am आयकर अपील सं/ I.T.A. No.5502/Mum/2018 (निर्धारण वर्ा / Assessment Year: 2011-12) Acit-24(2) बिधम/ M/S. Juneja Global A/36, Midc, 2Nd Street, Income Tax-24(2), Room Vs. No. 413, Piramal Chambers, Andheri (E), Mumbai- Lalbaug, Parel, Mumbai- 400093. 400012. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaafj1087C (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri Choudhary Arunkumar Singh (Dr) Assessee By: Shri Bipin B. Shah (Ar) सुनवाई की तारीख / Date Of Hearing: 30/01/2020 घोषणा की तारीख /Date Of Pronouncement: 09/07/2020 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Present Appeal Against The Order Dated 31.05.2018 Passed By The Commissioner Of Income Tax (Appeals) -36, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2011- 12. 2. The Revenue Has Raised The Following Grounds: -

…e order dated January 10,2011 passed in Tax Appeal No. 1090 of 2009 - since reported in [2013] 355 ITR 498(Guj) and in the case ofCIT v Bholanath Poly Fab P Ltd, vide order dated October 23, 2012, passed in Tax Appeal No. 63 of 2012 - since reported in [2013] 355 ITR 290 (Guj). The view taken by the Tribunal in the case of Vijay Proteins Ltd v. Asstt. CIT[1996] 58 JTD 428 (Ahd) came to be approved. If the entire purchases were wholly bogus and there was a finding of fact on record that no purchases were made at all, counsel for the Revenue would be justified in arguing that the entire amount of such bogus purchas…

M/S.D. Manish and Co., Mumbai vs. ACIT-19(1), Mumbai

In the result, appeal filed by the assessee and appeal filed by the revenue for Asst

Bench: Shri Mahavir Singh & Shri G. Manjunathad.Manish & Co. Vs. Acit-19(1) Ec-3100, Bharat Diamond Matru Mandir Bourse, Bkc Complex Tardeo Road Bandra(E) Mumbai-400 007 Mumbai-400 051

…in bogus purchases which the appellant would have made from such unknown entities. In this regard, it is apt to refer certain decisions dealing the similar issue of bogus purchases. The decision of Gujarat High court in the case of Bholanath Poly Fab Pvt.Ltd. 355 ITR 290 (Guj.) where the Hon’ble court was battling with the finding of Hon’ble ITAT that purchases were made from bogus parties since notice issued by the AO to these parties were allegedly received returned/unserved and the assessee was unable to produce any confirmation from these parties. The Tribunal had held that though purchases were made from bog…

ACIT- Circle-20(3), Mumbai vs. Vastupal Laherchand Jain, Mumbai

In the result, assessee’s appeal is allowed

Bench: Shri Pramod Kumar, Hon’Ble & Ms. Madhumita Roy, Hon’Ble] I.T.A. No. 6133/Mum/2018 Assessment Year: 2010-11 Asst. Commissioner Of Income Tax, Circle-20(3), Mumbai……...........…...…………..….Appellant 6Th Floor, Piramal Chambers, Lalbaug, Mumbai – 400 012. Vs. Shri Vastupal Laherchand Jain……………….......…..…………………....………………..……..Respondent 41, 1St Floor, Mehta Chambers, 4Th Lane, Kamathipura, Mumbai – 400 012. [Pan: Aaepj 5465 G] Appearances By: Shri Sanatha Mullamudi, D/R, Appeared On Behalf Of The Revenue Shri A.N. Shah, Ar Appeared On Behalf Of The Assessee. Date Of Concluding The Hearing : January 06, 2020 Date Of Pronouncing The Order : May 27, 2020 Order Per Ms. Madhumita Roy, Jm

…ful transaction has to be taxed. The judgement passed by the Hon'ble Gujarat High Court in judgement passed by the Hon'ble Gujarat High Court in judgement passed by the Hon'ble Gujarat High Court in the case of CIT vs. Bholanath Poly Fab Pvt. Ltd. reported in 355 ITR 290 the case of CIT vs. Bholanath Poly Fab Pvt. Ltd. reported in 355 ITR 290 the case of CIT vs. Bholanath Poly Fab Pvt. Ltd. reported in 355 ITR 290 (Guj) has also been taken care of by the Ld. CIT(A) where the facts are (Guj) has also been taken care of by the Ld. CIT(A) where the facts are (Guj) has also been taken care of by the Ld. CIT(A) where…

M/S Hbd Machines Manufacturing Corpn., Mumbai vs. ITO Ward 18(1)(5), Mumbai

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

Bench: Shri G. Manjunatha & Shri Ravish Soodhbd Machines Manfacturing Vs. Ito,Ward-18(1)(5) Corpn. Room No.619 & 634 G2/G3, Fort Chamber, Aaykar Bhawan Ambalal Doshi Marg M.K.Road Homi Mody Cross Lane No.2 Mumbai-400 020 Fort, Mumbai-400 001 Pan/Gir No.Aacfh0879A Appellant) .. Respondent)

…of the considered view that in the context of the situation, the cause of justice would be served by looking at the gross profit margins being declared by the appellant. The Hon'ble Gujarat High Court in the case of CIT vs. Bholanath PolyFab Pvt. Ltd. (2013) 355 ITR 290 and thereafter in the case of CIT vs. Simit P. Sheth ( 2013) 219 Taxman 85 (Guj) has held that in such facts and circumstances, not entire purchase price but only profit element embedded in such purchases can be added. The finding of the Hon'ble Gujarat High Court in the case of CIT vs. Simit P. Seth is as under :- "We are broadly in agreement w…

Sawalcahd B Sanghvi, Mumbai vs. Income Tax Officer WD 19(3)(2), Mumbai

In the result, appeal of the assessee is partly allowed

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blesawalchand B. Sanghvi V. Income Tax Officer 72, Bhavnagari Building Ward – 19(3)(2) Nanubhai Desai Road Matru Mandir, Mumbai Girgaum, Mumbai – 400 004 Pan: Abfps0172B (Appellant) (Respondent) Assessee By : Shri H.A. Shah Department By : Shri Kiran Unavekar

…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 [38 taxman.com 385]. Simply becaus…