CIT v. Simit P. Sheth

356 ITR 451High Court2013#27 most cited

What is CIT v. Simit P. Sheth authority for?

Additions for alleged bogus purchases should be restricted to the profit element, not the entire turnover. The profit element is often estimated at 12.5% of the purported bogus purchases.

1,465

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2016 to 2026.

Also referred to as

CIT v. Simit P. Sheth · section 69C · bogus purchases · undisclosed income · addition on profit element · gross profit · net profit · reassessment · assessment procedure

Also reported as

38 Taxmann 385

Sections most often in play

Section 143(3)Section 147Section 148Section 132Section 131Section 69CSection 133(6)Section 143(2)

Issues it is cited on

section 69csection 131section 133(6)reassessment proceedingsundisclosed incomesearch and seizuresection 69section 132section 13section 148businesssection 147

Judgments citing CIT v. Simit P. Sheth

Uttamchand P. Jain, Mumbai vs. ITO 19(3)(5), Mumbai

In the result, both the appeals filed by the Assessee stands partly allowed

ITA 996/MUM/2019[2010-11]Status: DisposedITAT Mumbai29 Aug 2023AY 2010-11

Bench: Shri B.R. Baskaran, Am & Shri N. K. Choudhry, Jm

For Appellant: Shri S.L. JainFor Respondent: Shri Surendra Kumar Meena
Section 133(6)Section 143(1)Section 145(3)Section 147Section 148Section 250

…IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN, AM & SHRI N. K. CHOUDHRY, JM I.T.A. No. 995/Mum/2019 Assessment Year: 2009-10) I.T.A. No. 996/Mum/2019 Assessment Year: 2010-11) Shri Uttamchand P. Jain ITO-19(3)(5), 6, Maheshwari Society, PM Road, Matru Mandir, Tardeo, Vs. Mumbai-400007. Kankuwadi, Vile Parle (E), Mumbai-400057. PAN No. ACRPJ0320M Appellant) : Respondent) Appellant/Assessee by : Shri S.L. Jain Respondent/Department by : Shri Surendra Kumar Meena Date of Hearing : 16.08.2023 Date of Pronouncement : 29.08.2023 O R D E R Per N. K. Choudhry, JM: The Assessee/Appell…

Uttamchand P. Jain, Mumbai vs. ITO 19(3)(5), Mumbai

In the result, both the appeals filed by the Assessee stands partly allowed

ITA 995/MUM/2019[2009-10]Status: DisposedITAT Mumbai29 Aug 2023AY 2009-10

Bench: Shri B.R. Baskaran, Am & Shri N. K. Choudhry, Jm

For Appellant: Shri S.L. JainFor Respondent: Shri Surendra Kumar Meena
Section 133(6)Section 143(1)Section 145(3)Section 147Section 148Section 250

…IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN, AM & SHRI N. K. CHOUDHRY, JM I.T.A. No. 995/Mum/2019 Assessment Year: 2009-10) I.T.A. No. 996/Mum/2019 Assessment Year: 2010-11) Shri Uttamchand P. Jain ITO-19(3)(5), 6, Maheshwari Society, PM Road, Matru Mandir, Tardeo, Vs. Mumbai-400007. Kankuwadi, Vile Parle (E), Mumbai-400057. PAN No. ACRPJ0320M Appellant) : Respondent) Appellant/Assessee by : Shri S.L. Jain Respondent/Department by : Shri Surendra Kumar Meena Date of Hearing : 16.08.2023 Date of Pronouncement : 29.08.2023 O R D E R Per N. K. Choudhry, JM: The Assessee/Appell…

Arunkumar Gopaldas Agrawal, Mumbai vs. Assistant Commissioner of Income Tax-19(1), Mumbai

Appeal are dismissed

ITA 812/MUM/2023[2012-13]Status: DisposedITAT Mumbai25 Aug 2023AY 2012-13
For Appellant: Shri R.K. SinhaFor Respondent: MS Sanyogita Nagpal
Section 143(3)

…sment order and the entire addition needed to be deleted. 3. On the facts and circumstances of the case and in law the Learned Commissioner of Income Tax (Appeals) erred in relying upon the decision of Hon'ble Gujarat High Court, in the case of Simit P Seth (356 ITR 451) for confirming the addition to the extent of Rs.1,39,08,789/- [Le. 12.5% of Rs. 11,12,70,313/-] without appreciating the evidences produced by the appellant to prove the genuineness of the purchases made. 2 ITA No.986/Mum/2023 (Assessment Year: 2012-13) 4. On the facts and circumstances of the case and in law the Learned Commissioner of Inco…

M/S. Spr Spirits Private Limited (Formerly Known As Spr Group Holdings Private Limited), Bangalore vs. Deputy Commissioner of Income Tax, Central Circle- 1(3), Bangalore

In the result, the appeals of the assessee are partly allowed for statistical purposes

ITA 134/BANG/2023[2011-12]Status: DisposedITAT Bangalore24 Jul 2023AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Bharath L., A.RFor Respondent: Ms. Neera Malhotra, D.R

…trader and the Tribunal having retained twelve and half per cent of the purchase towards its possible profit, there was no reason to interfere in the order of the Tribunal.” 6.16 In the case of CIT Vs. Simit P. Sheth the Gujarat High Court reported in (2013) 356 ITR 451 (Guj) wherein the Hon’ble Gujarat High Court has held as under: “The assessee was engaged in the business of trading in steel on wholesale basis. During the course of the reassessment proceedings for the year 2006-07, the Assessing Officer noticed that some of the suppliers of steel to the assessee had made their statements on oath to the effect…

M/S. Spr Spirits Private Limited (Formerly Known As Spr Group Holdings Private Limited), Bangalore vs. Deputy Commissioner of Income Tax, Central Circle- 1(3), Bangalore

In the result, the appeals of the assessee are partly allowed for statistical purposes

ITA 133/BANG/2023[2010-11]Status: DisposedITAT Bangalore24 Jul 2023AY 2010-11

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Bharath L., A.RFor Respondent: Ms. Neera Malhotra, D.R

…trader and the Tribunal having retained twelve and half per cent of the purchase towards its possible profit, there was no reason to interfere in the order of the Tribunal.” 6.16 In the case of CIT Vs. Simit P. Sheth the Gujarat High Court reported in (2013) 356 ITR 451 (Guj) wherein the Hon’ble Gujarat High Court has held as under: “The assessee was engaged in the business of trading in steel on wholesale basis. During the course of the reassessment proceedings for the year 2006-07, the Assessing Officer noticed that some of the suppliers of steel to the assessee had made their statements on oath to the effect…

M/S. Spr Spirits Private Limited (Formerly Known As Spr Group Holdings Private Limited), Bangalore vs. Deputy Commissioner of Income Tax, Central Circle- 1(3), Bangalore

In the result, the appeals of the assessee are partly allowed for statistical purposes

ITA 132/BANG/2023[2009-2010]Status: DisposedITAT Bangalore24 Jul 2023AY 2009-2010

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Bharath L., A.RFor Respondent: Ms. Neera Malhotra, D.R

…trader and the Tribunal having retained twelve and half per cent of the purchase towards its possible profit, there was no reason to interfere in the order of the Tribunal.” 6.16 In the case of CIT Vs. Simit P. Sheth the Gujarat High Court reported in (2013) 356 ITR 451 (Guj) wherein the Hon’ble Gujarat High Court has held as under: “The assessee was engaged in the business of trading in steel on wholesale basis. During the course of the reassessment proceedings for the year 2006-07, the Assessing Officer noticed that some of the suppliers of steel to the assessee had made their statements on oath to the effect…

M/S. Spr Spirits Private Limited (Formerly Known As Spr Group Holdings Private Limited), Bangalore vs. Deputy Commissioner of Income Tax, Central Circle- 1(3), Bangalore

In the result, the appeals of the assessee are partly allowed for statistical purposes

ITA 131/BANG/2023[2008-2009]Status: DisposedITAT Bangalore24 Jul 2023AY 2008-2009

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Bharath L., A.RFor Respondent: Ms. Neera Malhotra, D.R

…trader and the Tribunal having retained twelve and half per cent of the purchase towards its possible profit, there was no reason to interfere in the order of the Tribunal.” 6.16 In the case of CIT Vs. Simit P. Sheth the Gujarat High Court reported in (2013) 356 ITR 451 (Guj) wherein the Hon’ble Gujarat High Court has held as under: “The assessee was engaged in the business of trading in steel on wholesale basis. During the course of the reassessment proceedings for the year 2006-07, the Assessing Officer noticed that some of the suppliers of steel to the assessee had made their statements on oath to the effect…

The Income-Tax Officer -41(2)(2), Mumbai vs. Mr Jaiprakash Dhirajlal Barbhaya, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 475/MUM/2023[2010-2011]Status: DisposedITAT Mumbai12 Jul 2023AY 2010-2011

Bench: Shri S. Rifaur Rahman, Hon'Ble & Ms Kavitha Rajagopal, Hon’Bleincome Tax Officer – 41(2)(2) V. Jaiprakash Dhirajlal Barbhaya 301, Mahavir Apartment Room No. 636, 6Th Floor Nahur Road, Sarvodaya Nagar Kautilya Bhavan Mumbai – 400080 Bandra Kurla Complex Bandra(E), Mumbai - 400051 Pan: Agppb9599J (Appellant) (Respondent)

Section 143(1)Section 143(3)Section 148Section 271(1)(c)Section 274

…on certain purchases treated as unexplained expenditure. Assessing Officer did not doubt the sales made by the assessee from out of such purchases. Assessing Officer based on the decision of the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth [356 ITR 451] estimated the profit element in such purchases at 12.5% and by reducing the Gross Profit already declared by the assessee. In the circumstances, we hold that there is no concealment of income or furnishing of inaccurate particulars as the profit element was determined by way of adhoc estimation. Coming to the interest, the assessee furnished com…

Income Tax Officeer -27(1) (1), Navi Mumbai vs. M/S. Dura Opto Technologies, Mumbai

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

ITA 2422/MUM/2021[2009-10]Status: DisposedITAT Mumbai14 Jun 2023AY 2009-10

Bench: Shri M Balaganesh & Shri Pavan Kumar Gadalethe Ito – 27(1)(1) Vs. M/S Dura Opto Room No. 406, 4Th Floor, Technologies Tower No. 6, Vashi Rly 203, Sai Dham Bldg, Stn Complex, Vashi, Navi 90 Feet Road, Mumbai – 400703. Ghatkopar (E), Mumbai – 400077. Pan/Gir No. : Aaefd8131B Appellant .. Respondent Appellant By : Mr.T. Shankar. Cit Dr Respondent By : Mr.Rajesh Kothari.Ar Date Of Hearing 18.05.2022 Date Of Pronouncement 19.05.2022 आदेश / O R D E R Per Pavan Kumar Gadale Jm: The Revenue Has Filed The Appeal Against The Orders Of The Commissioner Of Income Tax (Appeals)-50, Mumbai Passed U/S 143(3) & 147 Of The Act. The Revenue Has Raised The Following Grounds Of Appeal:

For Appellant: Mr.T. Shankar. CIT DRFor Respondent: Mr.Rajesh Kothari.AR
Section 143(2)Section 143(3)

…the facts and considered the Hon’ble High Court decision and took a view. Further, We find the Jurisdictional Honble High Court in the case of Pooja Paper Trading Co. Vs. ITO, (104 taxmann.com 95) and Honble Gujarat High court in CIT Vs. Simit P Sheth (2013) (356 ITR 451) has upheld the disallowance restricting profit element on such purchases. 7. We find that the Ld.CIT(A) took a reasonable view that the only profit percentage has to be added and estimated @ 12.5% of bogus purchases. The Ld.DR could not controvert the observations of the Ld. CIT(A) with any new cogent evidence and material but relied only on th…

Income Tax Office-20(1)(1), Mumbai vs. M/S Crystal Corporation, Mumbai

In the result, the appeal filed by Revenue is dismissed

ITA 823/MUM/2023[2011-12]Status: DisposedITAT Mumbai24 May 2023AY 2011-12

Bench: Shri Pavan Kumar Gadale & Ms. Padmavathy Sito-20(1)(1), M/S. Crystal 110,1St Floor, Piramal Corporation, 4A/4B, बनाम/ Chamber, Ground Floor, Opp. Vs. Lalbaug,Parel, Annex Building, Old Mumbai-400012. Anjirwadi, Mazgaon, Mumbai-400010. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacfc7226Q (अपीलाथ" /Appellant) (""थ" / Respondent) अपीलाथ" ओर से / Appellant By : Shri.Anil Gupta.Dr ""थ" की ओर से/Respondent By : None. सुनवाई की तारीख / Date Of Hearing 22/05/2023 घोषणा की तारीख /Date Of Pronouncement 24/05/2023 आदेश / Order Per Pavan Kumar Gadale - Jm: The Revenue Has Filed An Appeal Against The Order Of Commissioner Of Income-Tax (Appeals)-National Faceless Appeal Centre, Delhi [“Ld. Cit(A)”] Passed Under Section 250 Of The Income Tax Act, 1961 (“The Act”) For The Assessment Year (“Ay”) 2011-12. The Revenue Has Raised Following Grounds Of Appeal:- 1. "Whether On The Facts & In Circumstances Of The Case & In Law, The Ld. Cit(A) Was Correct In Restricting The Addition Made On Account Of Bogus Purchase To 6% Of Total Bogus Purchases Ignoring The Fact That The Sales

For Appellant: Shri.Anil Gupta.DRFor Respondent: None
Section 133(6)Section 143(1)Section 143(2)Section 143(3)Section 148Section 250

…Hon’ble High Court decisions and took a view referred at Para 4 to 7 of the order. We find the Jurisdictional Honble High Court in the case of Pooja Paper Trading Co. Vs. ITO, (104 taxmann.com 95) and Honble Gujarat High court in CIT Vs. Simit P Sheth (2013) (356 ITR 451) has considered the profit element and the income was estimated. We find the Ld.CIT(A) took a reasonable view that the only profit percentage has to be added and estimated @ 6% of bogus purchases. The Ld.DR could not controvert the findings of the CIT(A) with any new cogent evidence and material to take a different view. We are of the opinion tha…

ITO Ward-2(1), Thane vs. Shri Rajesh Kumar G. Jain, Bhayander

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

ITA 1251/MUM/2021[2010-11]Status: DisposedITAT Mumbai24 May 2023AY 2010-11

Bench: Shri M Balaganesh & Shri Pavan Kumar Gadaleito, Ward – 2(1) Vs. Shri Rajesh Kumar G Room No. 25, 6Th Floor, Jain, B-Wing, Ashar It Park Flat No. 305, Janki Wagle Industrial Estate Orchid, 90 Feet Road, Thane (W) – 400604. Bhayander West, Maharashtra. Thane – 401101 Maharashtra. Pan/Gir No. : Aaepj5345H Appellant .. Respondent Appellant By : Shri T.Shankar. Dr Respondent By : None Date Of Hearing 19.05.2022 Date Of Pronouncement 20.05.2022 आदेश / O R D E R Per Pavan Kumar Gadale Jm: The Appeal Is Filed By The Revenue Against The Order Of The Commissioner Of Income Tax (Appeals)-1 Passed U/S 143(3) & 250 Of The Act. The Revenue Has Raised The Following Grounds Of Appeal:

For Appellant: Shri T.Shankar. DRFor Respondent: None
Section 131Section 133(6)Section 143(1)Section 143(2)Section 143(3)

…sidered the Hon’ble High Court/Honble Tribunal decisions and took a view. Further, We find the Jurisdictional Honble High Court in the case of Pooja Paper Trading Co. Vs. ITO, (104 taxmann.com 95) and Honble Gujarat High court in CIT Vs. Simit P Sheth (2013) (356 ITR 451) has upheld the disallowance restricting profit element on such purchases. 6. We find that the Ld.CIT(A) took a reasonable view that the only profit percentage has to be added and Shri Rajesh Kumar G. Jain, Mumbai. estimated @ 12.5% of bogus purchases. The Ld.DR could not controvert the observations of the Ld. CIT(A) with any new cogent evidenc…

ITO-22 (2)(1), Mumbai vs. Nilesh Chandrakant Vora, Mumbai

ITA 435/MUM/2023[2009-10]Status: DisposedITAT Mumbai18 May 2023AY 2009-10
For Appellant: NoneFor Respondent: Shri Sridhar Govind Menon
Section 143(3)Section 147

…IN THE INCOME TAX APPELLATE TRIBUNAL "SMC" BENCH, MUMBAI SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITO -22(2)(1), Mumbai, Room No. 508, 5th Floor, Piramal Chamber, Lalbaug, Mumbai - 400012 .…………… Appellant Nilesh Chandrakant Vora, Vs 202, Vivek Co op Hsg Soc Besent Road, Santacruz (W), Mumbai - 400054 Respondent …………… [PAN: AACPV8100C] Appearance For the Appellant/Department : Shri Sridhar Govind Menon For the Respondent/Assessee : None Date : 16.05.2023 Conclusion of hearing : 18.05.2023 Pronouncement of order O R D E R Per Rahul Chaudhary, Judicial Member: By way of the…

ITO - 28(3)(3), Mumbai vs. Shri Surekha Anil Lokre, Mumbai

In the result, the appeal by the Revenue is dismissed

ITA 3238/MUM/2019[2010-11]Status: DisposedITAT Mumbai13 Apr 2023AY 2010-11

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: NoneFor Respondent: Shri Satyaprakash Singh
Section 133(6)Section 143(1)Section 147Section 148Section 250Section 254(1)

…sclosed parties in the grey market at lower rates and purchases were shown as being made from the impugned parties to suppress its profits.. In such a situation, the various Courts including the Hon'ble Gujarat High Court in the case of CIT vs Simit P. Sheth, 356 ITR 451 have held that not the entire purchases but only the profit element embedded in these purchases was to be disallowed. The Hon'ble Gujrat High Court in this case has held that profit margin of 12.5% of the bogus purchases will be reasonable. Respectfully following the Order in the case of Simit P. Sheth the addition is restricted to 12.5% of the b…

M/S. Bajrangbali Steel Industries Pvt. Ltd, Rourkla vs. ACIT, Central Circle, Sambalpur

In the result, appeals of the assessee in IT(SS)A No

ITA 109/CTK/2022[2020-21]Status: DisposedITAT Cuttack28 Mar 2023AY 2020-21

Bench: Shri George Mathan & Shri Arun Khodpiaआयकर अऩीऱ (तऱाशियाां और अशिग्रहण)/It(Ss)A Nos.31 To 33/Ctk/2022 (ननधाारण वषा / Assessment Year : 2016-2017 To 2018-2019) M/S Bee Pee Rollers Pvt. Ltd., Vs Acit, Central Circle, Sambalpur Lal Building, Kachery Road, Rourkela, Sundergarh, Odisha-769012 Pan No. :Aabcb 3593 P & आयकर अऩीऱ (तऱाशियाां और अशिग्रहण)/It(Ss)A Nos.34 To 39/Ctk/2022 & आयकर अऩीऱ/Ita No.109/Ctk/2022 (ननधाारण वषा / Assessment Year : 2014-2017 To 2020-2021) M/S Bajrangbali Steel Industries Pvt. Vs Acit, Central Circle, Sambalpur Ltd., Lal Building, Kachery Road, Rourkela, Sundergarh, Odisha-769012 Pan No. :Aabcb 3594 L & आयकर अऩीऱ (तऱाशियाां और अशिग्रहण)/It(Ss)A Nos.40 To 44/Ctk/2022 (ननधाारण वषा / Assessment Year : 2014-2015 To 2018-2019) M/S Bajrangbali Re-Rollers Pvt. Ltd. Vs Acit, Central Circle, Sambalpur Lal Building, Kachery Road, Rourkela, Sundergarh, Odisha-769012 Pan No. :Aaccb 6678 A (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. ननधााररती की ओर से /Assessee By : Shri S.K.Tulsiyan, Advocate With Shri B.K. Tibrewal, Ca & Ms. Nisha Rachh, Ca Shri M.K.Gautam, Pr.Cit(Osd) राजस्व की ओर से /Revenue By : सुनवाई की तारीख / Date Of Hearing : 28/03/2023 घोषणा की तारीख/Date Of Pronouncement : 28/03/2023

For Appellant: Shri S.K.Tulsiyan, Advocate with Shri
Section 133ASection 153ASection 292CSection 69Section 69C

…has treated as unexplained expenditure in respect of the purchases and unexplained cash credit in respect of the sales. The ld. Pr.CIT(OSD) further drew our attention to the decision of the Hon‟ble Gujarat High Court in the case of Smt. P. Sheth, reported in 356 ITR 451 (Gujarat). It was the submission that the ld. CIT(A) has extracted the relevant portion of the said citations in his order to estimate the profit @10% of the unproved purchases and @5% of the unproved sales. It was the submission that if at all the assessee desired to cross examine such evidence, the assessee ought to have asked for the evidences…

Income Tax Officer, Ward-2(3)(8), Surat vs. Sanjaykumar Devkishan Panwar, Surat

In the result the ground No

ITA 588/SRT/2019[2008-09]Status: DisposedITAT Surat22 Feb 2023AY 2008-09

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.569/Srt/2019 Assessment Year: (2008-09) (Physical Court Hearing) Sanjaykumar Devkishan Panwar, Vs. The Ito, Ward-2(3)(8), 207, 2Nd Floor, 6/2060/61 Vedant Surat. Building Bojabhai Ni Sheri, Mahidharpura, Surat – 395003. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aovpp8989A (Revenue)/(Appellant) (Assessee)/(Respondent) आयकर अपील सं./Ita No.588/Srt/2019 Assessment Year: (2008-09) The Ito, Ward-2(3)(8), Vs. Sanjaykumar Devkishan Panwar, 207, 2Nd Floor, 6/2060/61 Vedant Surat. Building Bojabhai Ni Sheri, Mahidharpura, Surat – 395003 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aovpp8989A (Revenue)/(Appellant) (Assessee)/(Respondent) Assessee By Shri Rohit Vijayvargia, Ca Shri Ritesh Mishra, Cit(Dr) Respondent By Date Of Hearing 03/02/2023 Date Of Pronouncement 20/02/2023

Section 143(3)Section 147Section 148

…d on the GP/NP disclosed by the appellant, nature of trade etc. While arriving at that conclusion the binding decisions of Hon'ble Jurisdictional High Courts such as Satyanaraya P. Rathi (2013) 351 ITR 150, President Industries 258 ITR 654, Sum.it P Seth 2013 356 ITR 451, Bholanath Poly fab (2013) 355 ITR 290, Mayank Diamonds TA No. 200 of 2003 dated 07.11.2011 etc. where in it was held that only a percentage of the purchase representing element of profit may be taxed. Guidance was also drawn from the various decisions of Hon ITAT in the cases of beneficiaries of the same accommodation entry providers being Shri…

Sanjaykumar Devkishan Panwar, Surat vs. Income Tax Officer, Ward-2(3)(8), Surat

In the result the ground No

ITA 569/SRT/2019[2008-09]Status: DisposedITAT Surat22 Feb 2023AY 2008-09

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.569/Srt/2019 Assessment Year: (2008-09) (Physical Court Hearing) Sanjaykumar Devkishan Panwar, Vs. The Ito, Ward-2(3)(8), 207, 2Nd Floor, 6/2060/61 Vedant Surat. Building Bojabhai Ni Sheri, Mahidharpura, Surat – 395003. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aovpp8989A (Revenue)/(Appellant) (Assessee)/(Respondent) आयकर अपील सं./Ita No.588/Srt/2019 Assessment Year: (2008-09) The Ito, Ward-2(3)(8), Vs. Sanjaykumar Devkishan Panwar, 207, 2Nd Floor, 6/2060/61 Vedant Surat. Building Bojabhai Ni Sheri, Mahidharpura, Surat – 395003 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aovpp8989A (Revenue)/(Appellant) (Assessee)/(Respondent) Assessee By Shri Rohit Vijayvargia, Ca Shri Ritesh Mishra, Cit(Dr) Respondent By Date Of Hearing 03/02/2023 Date Of Pronouncement 20/02/2023

Section 143(3)Section 147Section 148

…d on the GP/NP disclosed by the appellant, nature of trade etc. While arriving at that conclusion the binding decisions of Hon'ble Jurisdictional High Courts such as Satyanaraya P. Rathi (2013) 351 ITR 150, President Industries 258 ITR 654, Sum.it P Seth 2013 356 ITR 451, Bholanath Poly fab (2013) 355 ITR 290, Mayank Diamonds TA No. 200 of 2003 dated 07.11.2011 etc. where in it was held that only a percentage of the purchase representing element of profit may be taxed. Guidance was also drawn from the various decisions of Hon ITAT in the cases of beneficiaries of the same accommodation entry providers being Shri…

The Income Tax Officer, Ward-4, Morbi vs. M/S. Rang Cera Coat, Morbi

The appeal of the Revenue is dismissed

ITA 229/RJT/2018[2011-12]Status: DisposedITAT Rajkot25 Jan 2023AY 2011-12

Bench: Mrs. Annapurna Gupta & Shri T.R. Senthil Kumar"नधा"रणवष"/Assessment Year: 2011-12 Income Tax Officer, Vs. M/S. Rang Cera Coat, Ward-4, 8-A, National Highway, Morbi Morbi Pan :Aalfr 1616 A अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Revenue By : Shri B.D. Gupta, Sr. Dr Assessee By : Shri Vimal Desai, Ar सुनवाई क" तार"ख/Date Of Hearing : 14.11.2022 घोषणा क" तार"ख /Date Of Pronouncement: 25.01.2023

For Appellant: Shri Vimal Desai, ARFor Respondent: Shri B.D. Gupta, Sr. DR
Section 131Section 133(6)Section 148

…Impex Pvt. Ltd. is improper and untenable in law. This view holds good even if the purchases are treated as bogus. This view is also supported by the Hon'ble Gujarat High Court judgment in case of Bholanath Ply Fab Pvt. Ltd. (355 ITR 290) and Simit P. Sheth (356 ITR 451) relied upon by the appellant. 7.4 In view of the above facts, it emerges that the appellant has submitted relevant documents in support of purchases made from M/s Parth Chem Impex Pvt. Ltd.; the appellant has disclosed sales from such purchases which has not been doubted; the appellant has also maintained quantitative details; the said party has…

Nagin G. Suthar, Mumbai vs. ITO 22 (2)(4), Mumbai

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

ITA 3185/MUM/2019[2009-10]Status: DisposedITAT Mumbai30 Nov 2022AY 2009-10

Bench: Shri M. Balaganesh, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Shri Bhupendra ShahFor Respondent: 07.09.2022
Section 143(3)Section 250

…T(A) who passed a consolidated order for A.Ys. 2009-10 to 2012-13 by restricting the addition to 12.5% by (AYs: 2009-10 to 2012-13) Nagin G. Suthar vs. ITO relying on the decision of the Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth (2013) 356 ITR 451(Guj) which was on identical facts. 6. Further aggrieved, the assessee was in appeal before the Tribunal which had passed an ex parte order, confirming the said addition. 7. The assessee then recalled the matter and has challenged the order of the ld. CIT(A) in confirming 12.5% on the impugned bogus purchases. 8. The ld. Authorized Representat…

Mbm Tubes P.Ltd, Mumbai vs. ITO 5(2)(3), Mumbai

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

ITA 5938/MUM/2014[2010-11]Status: DisposedITAT Mumbai15 Nov 2022AY 2010-11

Bench: Shri Prashant Maharishi & Shri Pavan Kumar Gadalem/S Mbm Tubes Pvt Ltd Vs. Ito – 5(2)(3) Mohanlal Jain & Co, Ca Mumbai. Office No. 10, Chartered House, Ground Floor, Dr Ch Street, Marine Lines Mumbai – 2. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aafcm4177L Appellant .. Respondent Appellant By : None Respondent By : Shri Chetan M. Kacha.Dr Date Of Hearing 09.11.2022 Date Of Pronouncement 21.11.2022 आदेश / O R D E R Per Pavan Kumar Gadale Jm: The Assessee Has Filed The Appeal Against The Order Passed By The Commissioner Of Income Tax (Appeals)Cit(A)-9, Mumbai Passed U/S 143(3) & 250 Of The Act. The Assessee Has Raised The Fallowing Grounds Of Appeal: M/S. Mbm Tubes Pvt Ltd, Mumbai. 1. On The Facts & In The Circumstances Of The Case & In Law The Honble Cit(A) Erred In Treating The Genuine Purchases As Bogus By Taking Peak Credit Of Purchase Parties Listed On Mvat Site As Un Explained Purchases Of Rs.55,80,857/- As Unexplained U/Sec69C Of The It Act & The Reasons Assigned For Doing Are Wrong & Contrary To The Provision Of Income Tax & Rules Made There Under. 2. Your Appellant Crave,Leave To Add,Alter,Amend,Or Modify Any Or All Grounds Of Appeal On Or Before The Date Of Hearing.

For Appellant: NoneFor Respondent: Shri Chetan M. Kacha.DR
Section 133(6)Section 143(1)Section 143(2)Section 143(3)Section 68

…M/s. MBM Tubes Pvt Ltd, Mumbai. officer has not doubted the sales and we rely on the ratio of decision of Hon'ble Jurisdictional High Court in the case of CIT v. Nikunj Eximp (216 Taxman.com 171) and Honble Gujarat High court in CIT Vs. Simit P Sheth (2013) (356 ITR 451). Accordingly, we restrict the addition to the extent of 12.5% of the bogus purchases and modify the Ld.CIT(A) order sustaining the addition @ 12.5% of purchases and partly allow the grounds of appeal of the assessee. 7. In the result, the appeal filed by the assessee is partly allowed. Order pronounced in the open court on 21.11.2022. (PRASHA…

Kugel Developers Pvt Ltd., Chennai vs. DCIT Company Circle II(4), Chennai

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 348/CHNY/2019[2008-09]Status: DisposedITAT Chennai28 Oct 2022AY 2008-09

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita No.: 2085/Chny/2014 िनधा"रण वष" / Assessment Year: 2008-09 M/S. Dharma Promoters (P) Ltd., Acit Times Partner, No. 58, Permabur V. Company Circle –I(4), Barracks Road, Chennai. Chennai – 600 007. [Pan:Aaccd-8247-C] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita No.: 2513/Chny/2017 िनधा"रण वष" / Assessment Year: 2008-09 M/S. Zeya Developers Pvt Ltd., Acit 341/36A, Ii Floor, Mangal Sain V. Corporate Circle -3(2), Building, Chennai -34. Bagh Kare Khan, Kishan Ganj, Delhi – 110 007. [Pan:Aaacz-3444-Q] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita No.: 1835/Chny/2018 िनधा"रण वष" / Assessment Year: 2008-09 M/S. Genda Buildcons Pvt Ltd., Ito Times Partner, No. 58, Permabur V. Corporate Ward -2(2), Barracks Road, Vepery, Chennai -34. Chennai – 600 007. [Pan:Aadcg-0885-B] (अपीलाथ"/Appellant) (""यथ"/Respondent)

…r settled principles of law, by the decisions of various courts, it is clear that in case of unproved purchase only profit element embedded therein needs to be taxed, but not total purchase as income. The Hon’ble Gujarat High Court in the case of CIT vs Smith 356 ITR 451, held that while estimating profit, the nature of business of the assessee needs to be considered. In this case, the assessee is into the business of civil construction work and in this kind of business, the industry average profit ranges from 5% to 10%. In fact, the statue by way of statutory provisions u/s. 44AD of the Act, has prescribed the n…