CIT v. Bholanath Poly Fab. Pvt. Ltd.

DCIT 1(1)(1), Mumbai vs. Bds Projects P.Ltd, Mumbai

The appeals of the Revenue are partly allowed

Bench: Shri Joginder Singh & Shri Rajesh Kumar

…med. Hon'ble Apex Court in Kachwala Gems vs JCIT (2007) 158 taxman 71 observed that an element of guesswork is inevitable in cases, where estimation of income is warranted. 2.2. The Hon'ble Gujarat High Court in CIT vs Bholanath Poly Fab. Pvt. Ltd. (2013) 355 ITR 290 (Guj.) held/observed as under:- “5. Having come to such a conclusion, however, the Tribunal was of the opinion that the purchases may have been made from bogus parties, nevertheless, the purchases themselves were not bogus. The Tribunal adverted to the facts and data on record and came to the conclusion that the entire quantity of opening stock…

DCIT 1(1)(1), Mumbai vs. Bds Projects P. Ltd, Mumbai

The appeals of the Revenue are partly allowed

Bench: Shri Joginder Singh & Shri Rajesh Kumar

…med. Hon'ble Apex Court in Kachwala Gems vs JCIT (2007) 158 taxman 71 observed that an element of guesswork is inevitable in cases, where estimation of income is warranted. 2.2. The Hon'ble Gujarat High Court in CIT vs Bholanath Poly Fab. Pvt. Ltd. (2013) 355 ITR 290 (Guj.) held/observed as under:- “5. Having come to such a conclusion, however, the Tribunal was of the opinion that the purchases may have been made from bogus parties, nevertheless, the purchases themselves were not bogus. The Tribunal adverted to the facts and data on record and came to the conclusion that the entire quantity of opening stock…

M.S.Prints, Mumbai vs. DCIT 27(2), Navi Mumbai

The appeal of the assessee is partly allowed

Bench: Shri Joginder Singh & Shri Rajesh Kumarassessment Year: 2010-11 M/S. M.S. Prints, Dcit-27(2), 105, Shiv Shakti Indl. Estate, Income Tax Office, T बनाम/ L.B.S. Marg, Ghatkopar (West), Ower No.6, Vashi Rly. Vs. Mumbai-400086 Station, Vashi, New Mumbai-400703 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No.Aalfm4121D

…urt in Kachwala Gems vs JCIT (2007) 158 taxman 71 observed that an element of guesswork is inevitable in cases, where estimation of income is warranted. 6 M/s. M.S. Prints 2.2. The Hon'ble Gujarat High Court in CIT vs Bholanath Poly Fab. Pvt. Ltd. (2013) 355 ITR 290 (Guj.) held/observed as under:- “5. Having come to such a conclusion, however, the Tribunal was of the opinion that the purchases may have been made from bogus parties, nevertheless, the purchases themselves were not bogus. The Tribunal adverted to the facts and data on record and came to the conclusion that the entire quantity of opening stock…

Mohammed Salim F. Chohan, Mumbai vs. ACIT 15(3), Mumbai

The appeal of the assessee is partly allowed

Bench: Shri Joginder Singh & Shri Rajesh Kumarassessment Year:2011-12 Mohammed Salim F. Acit-15(3), Shohan, Matru Mandir, बनाम/ 17/18, 4Th Floor, 28-Ali 1St Floor, Vs. Umer Street, Grant Road, Mumbai-400003 Mumbai-400007 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No.Aampc8124D

…rmed. Hon'ble Apex Court in Kachwala Gems vs JCIT (2007) 158 taxman 71 observed that an element of guesswork is inevitable in cases, where estimation of income is warranted. 2.2 The Hon'ble Gujarat High Court in CIT vs Bholanath Poly Fab. Pvt. Ltd. (2013) 355 ITR 290 (Guj.) held/observed as under:- “5. Having come to such a conclusion, however, the Tribunal was of the opinion that the purchases may have been made from bogus parties, nevertheless, the purchases themselves were not bogus. The Tribunal adverted to the facts and data on record and came to the conclusion that the entire quantity of opening stock…

ITO (E) I(1), Mumbai vs. Baun Foundation Trust, Mumbai

Bench: Shri R. C. Sharma, Am & Shri Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 153/Jp/2014 (निर्धारणवर्ा / Assessment Year:2010-11 ) M.S Goenka Diamond & Jewells Acit, Circle-2, बिधम/ Ltd, 401, Panchratna, M.S.B. Ka Ncr Building, Rasta, Jaipur. Jaipur Vs.

…’ble Jurisidictional High Court in the case of Naresh K. Pahuja (2015) 54 taxmann.com 258. Therefore considering the peculiar facts and circumstances of the present case and while relying upon the following judgments:- 1) ClT vs Bholanath Poly Fab Ltd. (2013) 355 ITR 290 (Guj). (HC), 2. CIT v Simit D, Sheth (2013) 356 ITR 451 (Guj)-(HC) and 3. CIT vs. Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) (1C) and taking into consideration the facts of the present case, and to account for the profit element embedded in these purchase transactions to factorize profit earned by assessee against purchase of material in…

Bhavesh Jayantilal Shah, Mumbai vs. Income Tax Officer-31(1)(3), Mumbai

The appeal of the assessee is partly allowed

Bench: Shri Joginder Singh, Assessment Year: 2009-10 Bhavesh Jayantilal Shah, Income Tax Officer-25(2)(3), C-60, 15Th Floor, Saibaba Bkc, Bandra, बनाम/ Enclave Tower, C-Wing, Bldg. Mumbai-400076 Vs. No.3, C.D Baug, S.V. Road, Neari City Centre Mall, Goregaon (West), Mumbai- "नधा"रती / Assessee राज"व / Revenue P.A. No.Admpr0197G

…ed. Hon'ble Apex Court in Kachwala Gems vs JCIT (2007) 158 taxman 71 observed that an element of guesswork is inevitable in cases, where estimation of income is warranted. 3.2. The Hon'ble Gujarat High Court in CIT vs Bholanath Poly Fab. Pvt. Ltd. (2013) 355 ITR 290 (Guj.) held/observed as under:- “5. Having come to such a conclusion, however, the Tribunal was of the opinion that the purchases may have been made from bogus parties, nevertheless, the purchases themselves were not bogus. The Tribunal adverted to the facts and data on record and came to the conclusion that the entire quantity of opening stock…

Ambernath Steel Tube and Sanitary Store, Mumbai vs. Income Tax Officer 2(1), Kalyan

The appeal of the assessee is partly allowed

Bench: Shri Joginder Singh, Assessment Year: 2010-11 M/S Ambernath Steel Tube Income Tax Officer & Sanitary Store, Ward-2(1), बनाम/ Partner-Shri Vimal Adhia, 02Nd Floor, Mohan Plaza, Vs. Station Road, Ambarnath (W), Wayle Nagar, Maharashtra-421501 Khandakpada, Kalyan (W) "नधा"रती / Assessee राज"व / Revenue P.A. No.Aahfa7639L

…med. Hon'ble Apex Court in Kachwala Gems vs JCIT (2007) 158 taxman 71 observed that an element of guesswork is inevitable in cases, where estimation of income is warranted. 2.2 The Hon'ble Gujarat High Court in CIT vs Bholanath Poly Fab. Pvt. Ltd. (2013) 355 ITR 290 (Guj.) held/observed as under:- “5. Having come to such a conclusion, however, the Tribunal was of the opinion that the purchases may have been made from bogus parties, nevertheless, the purchases themselves were not bogus. The Tribunal adverted to the facts and data on record and came to the conclusion that the entire quantity of opening stock…

Mira Construction-Jv, Mumbai vs. Assistant Commissioner of Income Tax-32(2), Mumbai

The appeal of the assessee is dismissed

Bench: Shri Joginder Singh, Assessment Year: 2009-10 Mira Construction-Jv, Acit-32(2), C/52, Ganjawala Apartment, Bandra, बनाम/ Svp Road, Borivali (W), Mumbai Vs. Mumbai-400092 "नधा"रती / Assessee राज"व / Revenue P.A. No.Aapfm7470B

…med. Hon'ble Apex Court in Kachwala Gems vs JCIT (2007) 158 taxman 71 observed that an element of guesswork is inevitable in cases, where estimation of income is warranted. 2.2 The Hon'ble Gujarat High Court in CIT vs Bholanath Poly Fab. Pvt. Ltd. (2013) 355 ITR 290 (Guj.) held/observed as under:- “5. Having come to such a conclusion, however, the Tribunal was of the opinion that the purchases may have been made from bogus parties, nevertheless, the purchases themselves were not bogus. The Tribunal adverted to the facts and data on record and came to the conclusion that the entire quantity of opening stock…

Mehta Emporium Jewellers, Mumbai vs. ITO 30(2)(3), Mumbai

The appeal of the assessee is dismissed

Bench: Shri Joginder Singh, Assessment Year: 2012-13 Mehta Emporium Jewellers, Income Tax Officer-30(2)(3), 101, Hetal Arch. S.V. Road, Mumbai बनाम/ Opp. Natraj Market, Malad (W) Vs. Mumbai-400064 "नधा"रती / Assessee राज"व / Revenue P.A. No.Aalfm2962N

…med. Hon'ble Apex Court in Kachwala Gems vs JCIT (2007) 158 taxman 71 observed that an element of guesswork is inevitable in cases, where estimation of income is warranted. 2.2. The Hon'ble Gujarat High Court in CIT vs Bholanath Poly Fab. Pvt. Ltd. (2013) 355 ITR 290 (Guj.) held/observed as under:- “5. Having come to such a conclusion, however, the Tribunal was of the opinion that the purchases may have been made from bogus parties, nevertheless, the purchases themselves were not bogus. The Tribunal adverted to the facts and data on record and came to the conclusion that the entire quantity of opening stock…

Mahavir Metal, Mumbai vs. Asst CIT 19(3), Mumbai

In the result, appeal is dismissed

Bench: Shri R.C.Sharma, Am Shri. Mahavir Metal, Vs. Asst. Cit 19(3) 6, Jaikuwar Bhavan Tardeo 8Th Khetwadi Lane Mumbai – 400 026 Mumbai – 400 004 Pan/Gir No.Aaifs6733N Appellant) .. Respondent)

…the purchases lies on the assessee and assessee has failed to discharge the onus cast on it and he treated the purchases as non genuine. Relying on the decision of Gujarat High Court in the case of Simit P. Sheth 356 ITR 451 and M/s. Bholenath Poly Fab P.Ltd. 355 ITR 290 made an addition of 12.5% of the alleged bogus purchases which worked out to Rs.26,04,089/-. 3 Shri. Mahavit Metal 6. By the impugned order, CIT(A) further reduced the addition made by AO by the G.P. rate declared by assessee after having the following observation:- 3.3. The submissions of the Ld. Counsel for the appellant have been carefully…

ITO 12(3)(3), Mumbai vs. Lab Devices India P.Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri R.C.Sharma, Hon’Ble & Shri Sandeep Gosain, Hon’Bleincome Tax Officer – 12(3)(3) Vs. M/S. Lab Device India Pvt. Ltd., Room No. 224, 2Nd Floor, 112, Atlanta Estate, Aayakar Bhavan, Opp. W.E. Highway, M.K. Road, Near Virwwani Industrial Mumbai – 400 020 Estate, Goregaon (East) Mumbai – 400 063 Pan/Gir No: Aaabcl 0636 K Appellant .. Respondent

…at the items purchased were used as input into assessee’s product for sales which have been accepted by the department. 6.4 It is noted that only profit element is liable to tax in such case as was held in the case of: 1. CIT v. Bholanath Poly Fab Ltd. (2013) 355 ITR 290 (Guj). (HC). 2. CIT v. Simit P. Sheth (2013) 356 ITR 451 (Guj) (HC) 3. CIT v. Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) (HC) 4. ITO v. Permanand (2007) 107 TTJ 395 (JD)(Trib) 5. Shri Madhukant B. Gandhi v. ITO ITA No. 1950/M/2009 Bench ‘B’ dt. 23.02.20100 (AY 2005- 06)(MUM.) (Trib.) 6. Sanjeev Woolen Mills v. CIT (2005) 279 ITR 434 (SC)…

ITO 6(1)(2), Mumbai vs. Amoolya Engineers P.Ltd, Mumbai

Accordingly this ground raised by the revenue is partly allowed

Bench: Shri Shamim Yahya, Am & Shri Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 6294/Mum/2016, (निर्धारणवर्ा / Assessment Year: 2009-10)

…the assessee had failed to establish the genuineness of purchases made from the parties. Therefore, considering the peculiar facts and circumstances of the present case and while relying upon the following judgments:- 1) ClT vs Bholanath Poly Fab Ltd. (2013) 355 ITR 290 (Guj). (HC), 2. CIT v Simit D, Sheth (2013) 356 ITR 451 (Guj)-(HC) and 3. CIT vs. Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) (1C) and taking into consideration the facts of the present case and the order of AO in 9 I.T.A. No. 6294/Mum/2016 Amoolya Engineers Pvt. Ltd. subsequent year AY 2010-11 and to account for the profit element embedd…

Asstt CIT 17(2), Mumbai vs. Late Manojkumar S. Gupta, Mumbai

The appeal of the Revenue is partly allowed

Bench: Shri Joginder Singh & Shri Manoj Kumar Aggarwalassessment Year: 2011-12 Acit-17(2), Late Shri Manojkumar S. Room No.134, Gupta Through L/H बनाम/ Aayakar Bhavan, Madhavi Gupta, Vs. M.K. Road, C/O- M/S Krishna Steel Mumbai-400020 Corporation, 110, First Floor, Arihant, Ahmedabad Street, Masjid Station (E), Mumbai-400009 (राज"व /Revenue) ("नधा"रती /Assessee) Pan. No. Aadpg1861G

…ed. Hon'ble Apex Court in Kachwala Gems vs JCIT (2007) 158 taxman 71 observed that an element of guesswork is inevitable in cases, where estimation of income is warranted. 2.5. The Hon'ble Gujarat High Court in CIT vs Bholanath Poly Fab. Pvt. Ltd. (2013) 355 ITR 290 (Guj.) held/observed as under:- “5. Having come to such a conclusion, however, the Tribunal was of the opinion that the purchases may have been made from bogus parties, nevertheless, the purchases themselves were not bogus. The Tribunal adverted to the facts and data on record and came to the conclusion that the entire quantity of opening stock…

United Asphalters Pvt. Ltd., Thane vs. ITO 13(1)(2), Mumbai

Bench: Shri Joginder Singh & Shri Manoj Kumar Aggarwal

…ffirmed. Hon'ble Apex Court in Kachwala Gems vs JCIT (2007) 158 taxman 71 observed that an element of guesswork is inevitable in cases, where estimation of income is warranted. 2.2. The Hon'ble Gujarat High Court in CIT vs Bholanath Poly Fab. Pvt. Ltd. (2013) 355 ITR 290 (Guj.) held/observed as under:- “5. Having come to such a conclusion, however, the Tribunal was of the opinion that the purchases may have been made from bogus parties, nevertheless, the purchases themselves were not bogus. The Tribunal adverted to the facts and data on record and came to the conclusion that the entire quantity of opening stock,…

DCIT 13(1)(1), Mumbai vs. United Asphalters P.Ltd, Mumbai

Bench: Shri Joginder Singh & Shri Manoj Kumar Aggarwal

…ffirmed. Hon'ble Apex Court in Kachwala Gems vs JCIT (2007) 158 taxman 71 observed that an element of guesswork is inevitable in cases, where estimation of income is warranted. 2.2. The Hon'ble Gujarat High Court in CIT vs Bholanath Poly Fab. Pvt. Ltd. (2013) 355 ITR 290 (Guj.) held/observed as under:- “5. Having come to such a conclusion, however, the Tribunal was of the opinion that the purchases may have been made from bogus parties, nevertheless, the purchases themselves were not bogus. The Tribunal adverted to the facts and data on record and came to the conclusion that the entire quantity of opening stock,…

DCIT 13(1)(1), Mumbai vs. United Asphalters P.Ltd, Mumbai

Bench: Shri Joginder Singh & Shri Manoj Kumar Aggarwal

…ffirmed. Hon'ble Apex Court in Kachwala Gems vs JCIT (2007) 158 taxman 71 observed that an element of guesswork is inevitable in cases, where estimation of income is warranted. 2.2. The Hon'ble Gujarat High Court in CIT vs Bholanath Poly Fab. Pvt. Ltd. (2013) 355 ITR 290 (Guj.) held/observed as under:- “5. Having come to such a conclusion, however, the Tribunal was of the opinion that the purchases may have been made from bogus parties, nevertheless, the purchases themselves were not bogus. The Tribunal adverted to the facts and data on record and came to the conclusion that the entire quantity of opening stock,…

DCIT 5(2)(1), Mumbai vs. Karp Impex Ltd, Mumbai

Bench: Shri Rajendra, Am & Shri Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 6761, 6760 & 6759/Mum/2016 (निर्धारणवर्ा / Assessment Year: 2007-08, 2009-10 & 2010-11)

…ot establish the genuineness of the transaction as held by Hon’ble Jurisidictional High Court in the case of Naresh K. Pahuja (2015) 54 taxmann.com 258. Therefore cosindering the peculiar upon the following judgments:- 1) ClT vs Bholanath Poly Fab Ltd. (2013) 355 ITR 290 (Guj). (HC), 2. CIT v Simit D, Sheth (2013) 356 ITR 451 (Guj)-(HC) and 3. CIT vs. Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) (1C) and taking into consideration the facts of the present case, and to account for the profit element embedded in these purchase transactions to factorize profit earned by assessee against purchase of material in…

DCIT Cen Cir 3, Mumbai vs. Swan Energy Ltd, Mumbai

Bench: Shri Rajendra, Am & Shri Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 6662 & 3870/Mum/2014 (निर्धारणवर्ा / Assessment Year: 2011-12 & 2010-11) Dcit Cen Cir 3 M/S Swan Energy Ltd. Room No. 905, Pratistha Formerly Known As Swan Mills Ltd, 2Nd Bhavan, Marines Lines, बिधम/ Mumbai-400020. Floor, Feltham House, Vs. Ballard Estate, J.N. Herdia Marg, Mumbai- 400001. स्थायीलेखासं./जीआइआरसं./ Pan/Gir No. Aabcs7890Q & आयकरअपीलसं./ I.T.A. No. 5778 & 2924/Mum/2014 (निर्धारणवर्ा / Assessment Year:2011-12 & 2010-11) M/S Swan Energy Ltd. Acit Rg 7(2) Formerly Known As Swan Room No. 626, M. K. बिधम/ Mills Ltd, 2Nd Floor, Feltham Road, Churchgate, Vs. House, Ballard Estate, J.N. Mumbai-400020. Herdia Marg, Mumbai- 400001. अपीलाथीकीओरसे/ Appellant By : Sh. J. P. Bairagazd प्रत्यथीकीओरसे/Respondentby : Ms. Abha Kala Chanda सुनवाईकीतारीख/ : 27/09/2017 Date Of Hearing घोषणाकीतारीख / : 06/12/2017 Date Of Pronouncement M/S Swan Energy Ltd..

…’ble Jurisidictional High Court in the case of Naresh K. Pahuja (2015) 54 taxmann.com 258. Therefore considering the peculiar facts and circumstances of the present case and while relying upon the following judgments:- 1) ClT vs Bholanath Poly Fab Ltd. (2013) 355 ITR 290 (Guj). (HC), 2. CIT v Simit D, Sheth M/s Swan Energy Ltd.. (2013) 356 ITR 451 (Guj)-(HC) and 3. CIT vs. Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) (1C) and taking into consideration the facts of the present case, and to account for the profit element embedded in these purchase transactions to factorize profit earned by assessee against…

ITO 19(2)(4), Mumbai vs. Naitik Gems, Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri P.K. Bansal, Vice- & Shri Pawan Singhito -19(2)(4), M/S Naitik Gems Room No. 217, Matru Mandir, 1304, Prasad Chambers, Vs. Mumbai-400007. Opera House, Mumbai-400004. Pan: Aaafn5200F (Appellant) (Respondent)

…embedded in bogus purchases which the appellant would have made from some unknown entity. In this regard, it is apt to refer to certain decisions dealing the similar type of issue. 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 bo…

Samkit Diamonds Exporters, Mumbai vs. ACIT 19(3), Mumbai

In the result both the appeals of the assessee as well of the revenue are allowed for statistical purposes

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.4133/Mum/2016 (नििाारण वर्ा / Assessment Year: 2012-13) बिाम/ Samkit Diamonds Exporters Acit 19(3) 111 Prasad Chambers, Tata Mumbai Road No.2, Opera House, V. Mumbai 400004 स्थायी ऱेखा सं./ Pan : Aakfs5302F (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

…f profit embedded 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. 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 A.O. 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 b…