CIT v. Bholanath Poly Fab. Pvt. Ltd.

ITO 32(2)(5), Mumbai vs. Pushpaben R.Shah, Mumbai

In the result, both the appeals of Revenue are partly allowed

Bench: Sri Mahavir Singh, Jm & Sri Ramit Kochar, Am

…d by Sales Tax Authorities from these parties held that the assessee’s purchases are bogus and accordingly considering the decision of Hon’ble Gujarat High Court in the case of CIT v. Smith P Seth (2013) 365 ITR 451(GJ) and Bholanath Poly Fab Pvt. Ltd. (2013) 355 ITR 290 applied profit rate at the rate of 12.5% of the bogus purchases at Rs.3,79,80,768 and made addition accordingly for an amount of Rs. 47,47,596/-. For this the AO gave following reasons: - “a. The assessee has failed to substantiate the claim' of purchases made from the parties against overwhelming evidence in the form of depositions, affidavits e…

M/S Micron Platers vs. Income Tax Officer20 (2) (2), Mumbai

In the result, appeal of the assessee is dismissed

Bench: Shri D. Karunakara Raoफनाभ/ M/S. Micron Platers, Ito-20(2)(2), 1/11, Building No.2, 1 St Floor, Mumbai. Vs. Marol Udyog Premises Coop. Soc., Marol Maroshi Road, Andheri (E), Mumbai – 400 059. स्थामी रेखा सं./ Pan : Aaqfm3374F (अऩीराथी /Appellant) .. (प्रत्मथी / Respondent) अऩीराथी की ओय से / Appellant By : Shri A.K. Sinha प्रत्मथी की ओय से/ Respondent By : Ms. Beena Santosh, Dr सुनवाई की तायीख / Date Of Hearing : 20.03.2017 घोषणा की तायीख /Date Of Pronouncement : 12.04.2017 आदेश / O R D E R Per D. Karunakara Rao, Am: This Appeal Filed By The Assessee On 2.5.2016 Is Against The Order Of The Cit (A)-36, Mumbai Dated 28.03.2016 For The Assessment Year 2010-2011. 2. The Only Issue Raised In This Appeal Relates To The Cit (A)’S Decision In Restricting The Addition To 12.5% Of The Bogus Purchases Amounting To Rs. 18,31,500/-. Briefly Stated Relevant Facts Of The Case Are That The Assessee Claimed The Said Purchases From M/S. Dev Enterprises, Whose Name Has Appeared In The Blocklist Of The Official Website Maintained By The Sales Tax Department. In The Assessment, Ao Disallowed The Said Amount U/S 69C Of The Act Treating The Same As Bogus Purchases. Matter Travelled To The First Appellate Authority. 3. During The Proceedings Before The First Appellate Authority, Cit (A) Restricted The Said Addition To 12.5% Of The Alleged Bogus Purchases Amounting To Rs. 18,31,500/-. While Coming To The Said Decision, Cit (A) Relied On The Judgment Of The Hon’Ble Gujarat High Court In The Case Of Cit Vs. Simit P. Sheth (355 Itr 290)

…te authority, CIT (A) restricted the said addition to 12.5% of the alleged bogus purchases amounting to Rs. 18,31,500/-. While coming to the said decision, CIT (A) relied on the judgment of the Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth (355 ITR 290) (Guj.) and others. Not satisfied with the said decision of the CIT (A), assessee is in appeal before the Tribunal. 4. During the proceedings before the Tribunal, Ld Counsel for the assessee reiterated the submissions made before the lower authorities. Further, Ld AR relied on the complete documentation ie invoices, payment receipts, books of ac…

ACIT 19(2), Mumbai vs. P.B. Metal Corporation, Mumbai

…आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, , , , मुंबई आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण मुंबई मुंबई “ जेजेजेजे” खंडपीठ मुंबई खंडपीठ खंडपीठ खंडपीठ Income-tax Appellate Tribunal -“J”Bench Mumbai सव"ी सव"ी सव"ी राजे"" सव"ी राजे"" राजे"",लेखा राजे"" लेखा लेखा सद"य लेखा सद"य सद"य एवं सद"य एवं एवं, राम लाल नेगी एवं राम लाल नेगी राम लाल नेगी, "याियक राम लाल नेगी "याियक "याियक सद"य "याियक सद"य सद"य सद"य Before S/Shri Rajendra,Accountant Member and Ram Lal Negi,Judicial Member आयकर आयकर अपील आयकर आयकर अपील अपील संसंसंसं./I.T.A./4150/Mum/2015, िनधा"रण अपील िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Year: 2009-10 व…

Nikopas Engineering Pvt. Ltd., Mumbai vs. ITO 2(2)(3), Mumbai

In the result, the appeal is dismissed

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2009-10

…it element embedded in such purchases could be added to assessee’s income. The Hon'ble High Court relied on the similar view taken in the case of CIT vs. Vijay M. Mistry Construction Ltd. [2013] 355 ITR 498 (Guj) and CIT vs. Bholanath Poly Fab (P) Ltd. [2013] 355 ITR 290 (Guj). Finally, the Hon'ble High Court held that the order of the Tribunal needed no interference. 7.2 It will be just and proper for us to follow the decision of the Hon'ble Gujarat High Court on the above issue. 7.3 In view of the above, the order of the learned CIT(A) directing the AO to estimate 12.5% of the bogus purchases of Rs.25,67,420/…

DCIT 13(1)(1), Mumbai vs. Nihar Equipment Pvt. Ltd., Mumbai

In the result, appeals filed by the assessee are partly allowed and that of the revenue are dismissed

Bench: Shri D.T. Garasia () & Shri Ashwani Taneja ( Account Member)

…s could not be fully substantiated by the assessee, the possibility of inflation in the amount of purchases could not be ruled out. Under these circumstances, relying upon the judgement of Hon’ble Gujarat High Court in the case of CIT vs Polyfab Pvt Ltd (2013 355 ITR 290 (Guj) sustained the disallowance to the extent of 12.5% and deleted the balance disallowance after making following observations:- “5.1 I have circumspected the entire facts and circumstances covering the issue under reference and have carefully considered the outcome of survey u/ 33A, finding of the Assessing Oficer and rival submissions of the…

Nihaar Equipment P.Ltd, Mumbai vs. DCIT RG 13(1)(1)

In the result, appeals filed by the assessee are partly allowed and that of the revenue are dismissed

Bench: Shri D.T. Garasia () & Shri Ashwani Taneja ( Account Member)

…s could not be fully substantiated by the assessee, the possibility of inflation in the amount of purchases could not be ruled out. Under these circumstances, relying upon the judgement of Hon’ble Gujarat High Court in the case of CIT vs Polyfab Pvt Ltd (2013 355 ITR 290 (Guj) sustained the disallowance to the extent of 12.5% and deleted the balance disallowance after making following observations:- “5.1 I have circumspected the entire facts and circumstances covering the issue under reference and have carefully considered the outcome of survey u/ 33A, finding of the Assessing Oficer and rival submissions of the…

Metropolitan Eximchem Ltd., Mumbai vs. Asst. CIT - 6(3), Mumbai

In the result, ground No 3 in assessee’s appeal is allowed

Bench: Shri D.T. Garasia, Jm & Shri Rajesh Kumar, Am

…rried to CIT(A) and CIT(A) has partly allowed the appeal by observing as under: “Therefore, such facts and circumstances demands reasonable and convincing approach. Recently 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 (Gui) 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 wi…

DCIT 11(2)(1), Mumbai vs. Shaan Lube Equipment P. Ltd, Thane

In the result, the appeal of the Revenue is dismissed

Bench: Shri B.R.Baskaran & Shri Pawan Singh

…IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH “E”, MUMBAI BEFORE SHRI B.R.BASKARAN, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No.625/Mum/2015 for (Assessment Year : 2010-11) DCIT-11(2)(1), M/s Shaan Lube Equipment Pvt. Ltd. Room No. 477A, Aayakar Plot No. 23, Golani Industrial Bhavan, M.K. Marg, Complex, Opp. Agarwal Hospital, Mumbai-400020. Vs. Valiv Road, Wasai (E), Dist-Thane-401208. PAN: AAECS0121R (Appellant) (Respondent) Revenue by : Shri Samuel Darse (CIT-DR) Assessee by : Shri Arun Shah (AR) Date of hearing : 09.02.2017 Date of Pronouncement : 24.02.2017 Order Under Section 254(1)…

Sai Sarnam Engineers, Mumbai vs. ITO 2(4) Kalyan, Kalyan

In the result the appeal is partly allowed

Bench: S/Shri. D.T. Garasia & Ashwani Tanejaassessment Year 2009 – 10 Income Tax Officer, 2Nd Floor, M/S Sai Sarnam Engineers V. Flat No. 1105-1106, Pleasant Park Ward 2(4) Kalyan, Mohan Plaza, Yogi Hills, Mulund – West Wayale Nagar, Khadakpada, Mumbai – 400 080 Kalyan – West – 421 301 Pan No.Aaefs 0726 K (Appellant ) (Respondent) Appellant By Shri Rahul K. Hakani & Shri Sashank Dundu Respondent By Shri M.C. Omi Ningshen Date Of Hearing : 24.01.2017 Date Of Pronouncement : 17 .02.2017

…herefore we are of the view that as per the judgment of various High Court’s and the Tribunal we are of the view that in such bogus purchases what can be added is only the profit element is to be added. We find that in the case of Bholanath Poly Fab Pvt. Ltd. 355 ITR 290 (Guj) wherein the facts were that the purchases were made from the bogus parties since the notice issued by AO to these parties were returned or unserved and the assessee was unable to produce the confirmation from these parties. The Tribunal has held that though purchases were made from bogus parties, nevertheless the purchases themselves were n…

Hemant R Sanghavi, Mumbai vs. Asst CIT 16(2), Mumbai

In the result the assessee appeal is dismissed

Bench: S/Shri. D.T. Garasia & Ashwani Tanejaassessment Year 2010 – 11 Mr. Hemant R. Sanghavi V. Assistant Commissioner Of Income D-502, Kukreja Palace Tax – 16(2) 2Nd Floor Vallabh Baug Lane Rd., Ghatkopar (E), Mumbai – 400 075 Matru Mandir, Tardeo Road Mumbai – 400 007 Pan No. Aagps 4816 C (Appellant ) (Respondent) Appellant By Shri Ronak G Doshi Respondent By Shri M.C. Omi Ningshen Date Of Hearing : 24.01.2017 Date Of Pronouncement : 17.02.2017

…e that assessee has made the purchase from some other party. Therefore what can be added is the profit embedded in bogus purchases which are to be added. The CIT(A) has considered the decision of Hon’ble Gujarat High court in Case Bholanath Poly Fab Pvt. Ltd. 355 ITR 290 (Guj) wherein the Gujarath High Court has held Purchases from the bogus party and if party was not produced before the AO for confirmation the only profit element can be added, in that case the Tribunal has held that the purchase were made from the bogus parties, nevertheless, the purchases themselves were not bogus to the entire quantity of open…

Heeralal Meghraj Doshi, Mumbai vs. Asst CIT 18(2), Mumbai

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

Bench: Shri B.R. Baskaran (Am) & Shri Amit Shukla (Jm)

…on/ disallowance to 12.5% of the purchases. The appellant further placed reliance in the following cases wherein it has been held that entire purchases cannot be disallowed and only profit element is to be added: i) CIT v. Bholanath Poly Fab Pvt. Ltd. (2013)355 ITR 290 (Guj)(HC) ii) CIT V. Simit P Sheth (2013) 356 ITR 451 (Guj)(High Court) 11. We notice that the assessing officer has placed reliance on the report given by the Sales tax department to come to the conclusion that the purchases made by the assessee from the suspicious dealers are not genuine. Even though the assessee has furnished evidences regar…

Vishawashkati Construction Co., Mumbai vs. ACIT 16(3), Mumbai

Appeals are dismissed

Bench: Shri G.S. Pannu & Shri Sandeep Gosain

…ining the addition to the extent of 12.5% and not the entire amount of purchases. In this context, we find that the CIT(A) has referred to the judgments of Hon'ble Gujarat High Court in the case of Simit P. Sheth, 356 ITR 451 and Bholanath Poly Fab Pvt. Ltd., 355 ITR 290. In this context, the plea of assessee is that it is engaged in the business of municipal contracting carrying out work of road repairs, municipal building repairs, etc. for the Municipal Corporation of Greater Mumbai. It is pointed out that the 6 M/s. Vishwashakti Construction ITA Nos. 1328, 1329, 1164 & 1165/Mum/2015 Municipal Corporation awar…

Vishawashkati Construction Co., Mumbai vs. ACIT 16(3), Mumbai

Appeals are dismissed

Bench: Shri G.S. Pannu & Shri Sandeep Gosain

…ining the addition to the extent of 12.5% and not the entire amount of purchases. In this context, we find that the CIT(A) has referred to the judgments of Hon'ble Gujarat High Court in the case of Simit P. Sheth, 356 ITR 451 and Bholanath Poly Fab Pvt. Ltd., 355 ITR 290. In this context, the plea of assessee is that it is engaged in the business of municipal contracting carrying out work of road repairs, municipal building repairs, etc. for the Municipal Corporation of Greater Mumbai. It is pointed out that the 6 M/s. Vishwashakti Construction ITA Nos. 1328, 1329, 1164 & 1165/Mum/2015 Municipal Corporation awar…

ACIT 19(3), Mumbai vs. Vishwashakti Construction, Mumbai

Appeals are dismissed

Bench: Shri G.S. Pannu & Shri Sandeep Gosain

…ining the addition to the extent of 12.5% and not the entire amount of purchases. In this context, we find that the CIT(A) has referred to the judgments of Hon'ble Gujarat High Court in the case of Simit P. Sheth, 356 ITR 451 and Bholanath Poly Fab Pvt. Ltd., 355 ITR 290. In this context, the plea of assessee is that it is engaged in the business of municipal contracting carrying out work of road repairs, municipal building repairs, etc. for the Municipal Corporation of Greater Mumbai. It is pointed out that the 6 M/s. Vishwashakti Construction ITA Nos. 1328, 1329, 1164 & 1165/Mum/2015 Municipal Corporation awar…

ACIT 19(3), Mumbai vs. Vishwashakti Construction, Mumbai

Appeals are dismissed

Bench: Shri G.S. Pannu & Shri Sandeep Gosain

…ining the addition to the extent of 12.5% and not the entire amount of purchases. In this context, we find that the CIT(A) has referred to the judgments of Hon'ble Gujarat High Court in the case of Simit P. Sheth, 356 ITR 451 and Bholanath Poly Fab Pvt. Ltd., 355 ITR 290. In this context, the plea of assessee is that it is engaged in the business of municipal contracting carrying out work of road repairs, municipal building repairs, etc. for the Municipal Corporation of Greater Mumbai. It is pointed out that the 6 M/s. Vishwashakti Construction ITA Nos. 1328, 1329, 1164 & 1165/Mum/2015 Municipal Corporation awar…

Kiran Navin Doshi, Mumbai vs. ITO -23(2)(4), Mumbai

In the result, the assessee’s appeal for A

Bench: Shri Jason P. Boaz & Shri Saktijit Deysmt. Kiran Navin Doshi Income Tax Officer-23(2)(4) D-705, Kalp Nagri C-10, Pratyksha Kar Bhavan Vs. B.R. Road, Mulund (W) Bkc, Bandra East Mumbai 400080 Mumbai Pan – Abwpd5848A Appellant Respondent

…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." 7.26. 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…

Refrigerated Deistributors P.Ltd, Mumbai vs. DCIT 2(3)(1), Mumbai

In the result, all the five appeals of assessee are partly allowed and appeal of Revenue is dismissed

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SRI MAHAVIR SINGH, JM AND SRI RAJESH KUMAR, AM ITA No.2985/Mum/2016 (A.Y:2008-09) ITA No.2987/Mum/2016 (A.Y:2010-11) M/s Refrigerated Distributors Pvt. Dy. Commissioner of Income Tax 2(3)(1) Aayakar Bhavan, Maharshi Ltd., 410, Emca House Shahid Vs. K. Road, Mumbai-400020 Bhagatsingh Rd. Fort,, Mumbai-400001 PAN No.AABCR1479A .. Appellant Respondent Dy. Commissioner of Income Tax M/s Refrigerated Distributors 2(3)(1) Aayakar Bhavan, Maharshi Pvt. Ltd., K. Road, Mumbai-400020 Vs. 410, Emca House Shahid Bhagatsingh Rd. Fort,, Mumbai-400001 Appellant .. Re…

Refrigerated Deistributors P.Ltd, Mumbai vs. DCIT 2(3)(1), Mumbai

In the result, all the five appeals of assessee are partly allowed and appeal of Revenue is dismissed

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SRI MAHAVIR SINGH, JM AND SRI RAJESH KUMAR, AM ITA No.2985/Mum/2016 (A.Y:2008-09) ITA No.2987/Mum/2016 (A.Y:2010-11) M/s Refrigerated Distributors Pvt. Dy. Commissioner of Income Tax 2(3)(1) Aayakar Bhavan, Maharshi Ltd., 410, Emca House Shahid Vs. K. Road, Mumbai-400020 Bhagatsingh Rd. Fort,, Mumbai-400001 PAN No.AABCR1479A .. Appellant Respondent Dy. Commissioner of Income Tax M/s Refrigerated Distributors 2(3)(1) Aayakar Bhavan, Maharshi Pvt. Ltd., K. Road, Mumbai-400020 Vs. 410, Emca House Shahid Bhagatsingh Rd. Fort,, Mumbai-400001 Appellant .. Re…

Refrigerated Deistributors P.Ltd, Mumbai vs. DCIT 2(3)(1), Mumbai

In the result, all the five appeals of assessee are partly allowed and appeal of Revenue is dismissed

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SRI MAHAVIR SINGH, JM AND SRI RAJESH KUMAR, AM ITA No.2985/Mum/2016 (A.Y:2008-09) ITA No.2987/Mum/2016 (A.Y:2010-11) M/s Refrigerated Distributors Pvt. Dy. Commissioner of Income Tax 2(3)(1) Aayakar Bhavan, Maharshi Ltd., 410, Emca House Shahid Vs. K. Road, Mumbai-400020 Bhagatsingh Rd. Fort,, Mumbai-400001 PAN No.AABCR1479A .. Appellant Respondent Dy. Commissioner of Income Tax M/s Refrigerated Distributors 2(3)(1) Aayakar Bhavan, Maharshi Pvt. Ltd., K. Road, Mumbai-400020 Vs. 410, Emca House Shahid Bhagatsingh Rd. Fort,, Mumbai-400001 Appellant .. Re…

Refrigerated Deistributors P.Ltd, Mumbai vs. DCIT 2(3)(1), Mumbai

In the result, all the five appeals of assessee are partly allowed and appeal of Revenue is dismissed

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SRI MAHAVIR SINGH, JM AND SRI RAJESH KUMAR, AM ITA No.2985/Mum/2016 (A.Y:2008-09) ITA No.2987/Mum/2016 (A.Y:2010-11) M/s Refrigerated Distributors Pvt. Dy. Commissioner of Income Tax 2(3)(1) Aayakar Bhavan, Maharshi Ltd., 410, Emca House Shahid Vs. K. Road, Mumbai-400020 Bhagatsingh Rd. Fort,, Mumbai-400001 PAN No.AABCR1479A .. Appellant Respondent Dy. Commissioner of Income Tax M/s Refrigerated Distributors 2(3)(1) Aayakar Bhavan, Maharshi Pvt. Ltd., K. Road, Mumbai-400020 Vs. 410, Emca House Shahid Bhagatsingh Rd. Fort,, Mumbai-400001 Appellant .. Re…