CIT v. Bholanath Poly Fab. Pvt. Ltd.

K A International, Mumbai vs. ITO-19(2)(2), Mumbai

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

Bench: Shri S. Rifaur Rahman, Hon'Ble & Ms. Kavitha Rajagopal, Hon'Blem/S. Ka International V. Income Tax Officer – 19(2)(2) 1St Floor, 62, Zaveri House Piramal Chambers, Lal Baugh N.S. Patkar Marg, Grant Road Mumbai - 400013 Mumbai - 400007 Pan: Aaafk0864E (Appellant) (Respondent) Assessee Represented By : Shri Himanshu Gandhi Department Represented By : Shri P.D. Chougule

…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 5 M/s. KA International 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 taxma…

Creative Awards & Rewards P. Ltd., Mumbai vs. ITO 9(2) (3), Mumbai

Bench: Shri Kuldip Singhassessment Year: 2010-11 M/S. Creative Awards, Income Tax Officer – 1/B, Dashmesh Colony, 9(2)(3), Four Bunglow Road, Vs. Aayakar Bhavan, Andheri (W), Room No.601A, Mumbai – 400 058 M.K. Road, Pan: Aaacc1801G Mumbai - 400020 (Appellant) (Respondent)

…sical delivery of the goods. Keeping in view these circumstances, the AO by following the decisions rendered by Hon’ble Gujarat High Court in case of CIT Vs. Simit P. Sheth reported as 356 ITR 451 and in the case of M/s. Bholenath Poly Fab P. Ltd. reported as 355 ITR 290 proceeded to estimate the profit element embedded in the bogus purchases @ 12.5% which has been accepted by the Ld. CIT(A). 15. In the identical facts and circumstances of the case where though the purchases found to be bogus by the Revenue Authorities but sales by the assessee have been accepted as genuine as against these bogus purchases, I am…

ITO-20(3)(1), Mumbai vs. Saheb Ali Khan, Mumbai

In the result, the appeal by the Revenue is dismissed

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

…GP of the appellant and therefore further addition of 12.5% could result in a GP above 14% in the appellant's trading business 5.4 An identical issue came up before the Hon'ble High Court of Gujarat in the case of CIT vs Bholanath Polyfab 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 revenue authorities below that such purchase was made from bogus parties. After…

Aastha Creations, Mumbai vs. Income Tax Officer 20(1)(1), Mumbai

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

Bench: Shri Vikas Awasthy, Hon'Ble & Shri S. Rifaur Rahman, Hon'Bleaastha Creations V. Income Tax Officer – 20(1)(1) Unit No. 102, M-Block Room No. 124, 1St Floor Ranjit Studio Compound Piramal Chambers, Lalbaug Dadasaheb Phalke Road Parel - 400012 Dadar (E), Mumbai - 400014 Pan: Aamfa1927A (Appellant) (Respondent)

…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 held by the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth [38 taxman.com 385]. Simply because…

Rakesh Mafatlal Jain, Mumbai vs. ITO-19(3)(1), Mumbai

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

Bench: Shri Vikas Awasthy, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blerakesh Mafatlal Jain V. Income Tax Officer – 19(3)(1) C/O. M.A. Enterprises Mumbai A/4, Madhavji Building 260, S.V.P Road Opp. Alankar Cinema Mumbai – 400004 Pan: Agcpj5330L (Appellant) (Respondent)

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC”, MUMBAI BEFORE SHRI VIKAS AWASTHY, HON'BLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER Rakesh Mafatlal Jain v. Income Tax Officer – 19(3)(1) C/o. M.A. Enterprises Mumbai A/4, Madhavji Building 260, S.V.P Road Opp. Alankar Cinema Mumbai – 400004 PAN: AGCPJ5330L (Appellant) (Respondent) Assessee Represented by : Shri Prakash Jotwani Department Represented by : Shri Suhas Dabade Date of conclusion of Hearing : 21.09.2023 Date of Pronouncement : 21.09.2023 O R D E R PER S. RIFAUR RAHMAN (AM) 1. This appeal is filed by the assessee aga…

Pankaj P. Mehta, Mumbai vs. CIT (A)-36, NFAC, Delhi

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

Bench: Shri Vikas Awasthy, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blepankaj P. Mehta V. Cit (Appeals-36) Flat No. 301, Plot No. 289 National Faceless Appeal Centre Delhi Ahinsa Sadan Co-Op Housing Society Road No. 3 Opp. Suvidha Hospital & Polyclinic Jawahar Nagar, Goregaon (W) Mumbai - 400102 Pan: Agdpm3309H (Appellant) (Respondent)

…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 held by the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth [38 taxman.com 385]. Simply because…