CIT v. Bholanath Poly Fab. Pvt. Ltd.

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…

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

ITO 14(1)(3), Mumbai vs. Digitron Computers P.Ltd, Mumbai

The appeals of the assessee are allowed

…आयकर अपीलीय अिधकरण, मुंबई “अई अई अई” खंडपीठ अई Income-tax Appellate Tribunal -“I”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 सी एवं सी सी. एन सी एन एन. "साद एन "साद "साद,"याियक "साद "याियक "याियक सद"य "याियक सद"य सद"य सद"य Before S/Shri Rajendra,Accountant Member and C.N. Prasad,Judicial Member आयकर आयकर अपील अपील संसंसंसं./ITA/160/Mum/2015,िनधा"रण िनधा"रण वष" वष" /Assessment Years: 2010-11 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Income tax Officer-14(1)(3) M/s. Digitron Computers Pvt. Ltd. Room No.458, 4th Floor, Aayakar Unit No.2, Swas…

Digitron Computers P. Ltd, Mumbai vs. ITO 10(2)(1), Mumbai

The appeals of the assessee are allowed

…आयकर अपीलीय अिधकरण, मुंबई “अई अई अई” खंडपीठ अई Income-tax Appellate Tribunal -“I”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 सी एवं सी सी. एन सी एन एन. "साद एन "साद "साद,"याियक "साद "याियक "याियक सद"य "याियक सद"य सद"य सद"य Before S/Shri Rajendra,Accountant Member and C.N. Prasad,Judicial Member आयकर आयकर अपील अपील संसंसंसं./ITA/160/Mum/2015,िनधा"रण िनधा"रण वष" वष" /Assessment Years: 2010-11 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Income tax Officer-14(1)(3) M/s. Digitron Computers Pvt. Ltd. Room No.458, 4th Floor, Aayakar Unit No.2, Swas…

Amit Devani, Mumbai vs. ITO 22(1)(1), Navi Mumbai

In the result, appeals of the Assessee are partly allowed as indicated above

Bench: Shri C.N.Prasad,Jm & Shri N. K. Pradhan, Am Income Tax Appeal Nos.705, 706 & 707/Mum/2016 (धििाारण वर्ा / Assessment Years : 2009-10, 2011-12 & 2010-11) Shri Amit Davani Vs. Ito 22 (1) (1) 601, Shri Nidhi Apartments Vashi Railway Station Cama Lane, Ghatkopar (W) Navi Mumbai Mumbai – 400 086 (प्रत्यर्थी / Respondent) (अपीलार्थी / Appellant) स्र्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Accpd7658R अपीलार्थी की ओर से /Appellant By : Shri Kirit S Sanghavi प्रत्यर्थी की ओर से /Revenue By : Shri Kailash Gaikwad सुनवाई की तारीख / Date Of Hearing : 05/10/2016 घोषणा की तारीख /Date Of Pronouncement : 28/12/2016 आदेश / O R D E R

…n what is normally given for a purchases in the normal course of business, and therefore, in a situation like this, the appellant would have been getting a profit out of these transactions. Gujarat High Court in the case of CIT Vs. Bholanath Holyfab Pvt.Ltd. (355 ITR 290) & CIT Vs. Simit P. Sheth (365 ITR 451) has held that when purchases were made from parties other than those mentioned in the books of accounts, the profit element embedded in such purchases could be added to an assessee's income. Therefore, the profit element relating to these bogus purchases, shall be brought to tax. In the case of the appellan…

ITO 16(2)(1), Mumbai vs. Ashwin Purshottam Bajaj, Mumbai

In the result , we dismiss both the appeal of the assessee as well of Revenue

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 4736/Mum/2014 ("नधा"रण वष" / Assessment Year : 2010-11) Shri Ashwin Purshotam The Ito – Ward 16(2)(1), बनाम/ Bajaj, Mumbai. V. C/O Shri Prakash Jhunjhunwala, Chartered Accountant, 5, Jolly Bhawan No. 2, 7 New Marine Lines, Churchgate, Mumbai – 400020. "थायी लेखा सं./Pan : Aacpb7522J .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

…hort, if there is a sale, then it is required to the presumed that there is a corresponding purchase against each such sale and moreover, in impugned case, ITA 4736/Mum/2014 & 7 there is a direct nexus of sales with the purchases. [38 Taxmann.com 385 (Guj), 355 ITR 290 (Guj), 263 ITR 610 (MP), 304 ITR 52 (MP), 258 ITR 654 (Gu}); As per comparative chart of sales vis-a-vis purchase (copy enclosed), it is evident that each purchase corresponds to the sales. For example : The purchase of 257 pairs of footwear made vide bill no 16 on 17th September, 2009 aggregating to Rs. 126,333 from Deep Enterprises were sold o…

Ashwin Purshotam Bajaj, Mumbai vs. ITO, Ward- 16(2)(1), Mumbai

In the result , we dismiss both the appeal of the assessee as well of Revenue

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 4736/Mum/2014 ("नधा"रण वष" / Assessment Year : 2010-11) Shri Ashwin Purshotam The Ito – Ward 16(2)(1), बनाम/ Bajaj, Mumbai. V. C/O Shri Prakash Jhunjhunwala, Chartered Accountant, 5, Jolly Bhawan No. 2, 7 New Marine Lines, Churchgate, Mumbai – 400020. "थायी लेखा सं./Pan : Aacpb7522J .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

…hort, if there is a sale, then it is required to the presumed that there is a corresponding purchase against each such sale and moreover, in impugned case, ITA 4736/Mum/2014 & 7 there is a direct nexus of sales with the purchases. [38 Taxmann.com 385 (Guj), 355 ITR 290 (Guj), 263 ITR 610 (MP), 304 ITR 52 (MP), 258 ITR 654 (Gu}); As per comparative chart of sales vis-a-vis purchase (copy enclosed), it is evident that each purchase corresponds to the sales. For example : The purchase of 257 pairs of footwear made vide bill no 16 on 17th September, 2009 aggregating to Rs. 126,333 from Deep Enterprises were sold o…

Asst CIT 26(3), Mumbai vs. Saini Electronic Security System, Mumbai

In the result, appeal of the Revenue and the Cross Objection raised by the assessee are dismissed

Bench: Shri D. Karunakara Rao & Shri Pawan Singhi.T.A. No.2225/M/2015 (Assessment Year: 2010-2011) फनाभ/ Acit, Circle-26(3), M/S. Saini Electronic Mumbai. Security System, Vs. 26-A, Narayan Plaza, Unit No.6, 1St Floor, Chandivali, Opp. Saki Vihar Road, Saki Naka, Mumbai-72. स्थामी रेखा सं./ Pan : Abafs0771M (अऩीराथी /Appellant) .. (प्रत्मथी / Respondent) C.O.No.192/M/2016 (Arising Out Of I.T.A. No.2225/M/2015) (Assessment Year: 2010-2011) फनाभ/ M/S. Saini Electronic Security Acit, Circle-26(3), System, Mumbai. Vs. 26-A, Narayan Plaza, Unit No.6, 1St Floor, Chandivali, Opp. Saki Vihar Road, Saki Naka, Mumbai-72. स्थामी रेखा सं./ Pan : Abafs0771M (अऩीराथी /Appellant) .. (प्रत्मथी / Respondent) अऩीराथी की ओय से / Appellant By : Shri Sanjeev Lalan प्रत्मथी की ओय से/ Respondent By : Shri Saurabh Kumar Rai, Dr

…his being so the entire purchases from these parties cannot be treated as bogus and added to income because what needs to be taxed is the profit element embedded in such transaction. (reliance is placed on the decision of CIT vs. Bholath Plyfab Pvt Ltd [2013] 355 ITR 290 (Guj.). Estimation of profit ranging from 12.5% to 15% has been upheld by the Hon‟ble Gujarat High Court in the case of CIT vs Simit P Sheth 356 ITR 451 (Guj.) depending upon the nature of business. Respectfully the decision of Simit P Sheth (supra) and considering the facts of the case, I am of the view that estimation of profit at 12.5% would m…

Innovators Facade Systems P.Ltd, Thane vs. ACIT Cir 2, Thane

In the result, appeals of assessee are allowed in part

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm

…are hawala entry givers- Entire purchases were added. Tribunal restricted to 25% of purchases as profit of assessee. Both the assessee and Revenue filed an appeal before the Court. High Court affirmed the view of Tribunal. CIT vs. Bholanath Poly Fab (P.) Ltd. 355 ITR 290 (Gujarat HC) Assessee is engaged in the business of trading in finished fabrics. Assessing Officer disallowed the purchases on account that parties from whom purchases were made are not found at the addresses given. CIT(A) confirmed the assessment order. Tribunal held that purchases were made from bogus parties, but the purchases themselves were…

DCIT 8(3), Mumbai vs. Sar Engineering Ltd, Mumbai

In the result, the appeal of Revenue is dismissed

Bench: Shri Shailendra Kumar Yadav & Shri Rajesh Kumar.

…/14 A.Y. 10-11 [DCIT vs. M/s. Sar Engineering Ltd.] Page 3 iii. "Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in relying on the judgement of Gujarat High Court in the case of CIT vs. Bholanath Poly Fab (Pvt) Ltd. (355 ITR 290) without appreciating the fact that in that case the quantity details i.e stock details, octroi receipts were submitted therefore the underlying presumption in that case was that the entire receipts were not unaccounted and therefore only the profit embedded therein can be brought to tax whereas in the case of the assessee as there were no actual…