CIT v. Simit P. Sheth

Remy Diamonds Private Limited, Mumbai vs. Principal Commissioner of Income Tax - 5, Mumbai

In the result, the appeals filed by the assessee are allowed for statistical purpose

Bench: Shri Aby T. Varkey, Jm & Shri S. Rifaur Rahman, Am आयकर अपील सं/ I.T.A. Nos. 3898 To 3900/Mum/2018 (निर्धारण वर्ा / Assessment Year: 2008-09 To 2010-11) Remy Diamonds Pvt. Ltd. बिधम/ The Principal Commissioner Gw-1060, G- Block, Bharat Of Income Tax-5 Vs. Diamond Bourse, Mumbai Aayakar Bhavan, M. K. Kurla Complex, Bandra (E), Road, Mumbai-400051 Mumbai-400051. आयकर अपील सं/ I.T.A. Nos. 5481 To 5483/Mum/2018 (निर्धारण वर्ा / Assessment Year: 2008-09 To 2010-11) Remy Diamonds Pvt. Ltd. बिधम/ Dcit, Circle-5(3)(1) Gw-1060, G- Block, Bharat Room No.573, Aayakar Vs. Diamond Bourse, Mumbai Bhavan, M. K. Road, Kurla Complex, Bandra (E), Mumbai-400020. Mumbai-400051. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aadcr2195R (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Hiren Vepari Revenue By: Smt. Mahita Nair (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 13/09/2022 घोषणा की तारीख /Date Of Pronouncement: 21/10/2022 आदेश / O R D E R Per Bench:

…ity of stock was sold by the assessee and, hence, only the profit margin embedded in such purchases would be subjected to tax and not entire purchases. The Hon’ble Gujarat High Court has again in the case of Commissioner of Income Tax v. Simit P. Sheth (2013) 356 ITR 451 upheld the order of the Tribunal directing an addition to the extent of 12.50% of the bogus purchases. 5.3. As per schedule ‘C’ to the Tax Audit Report in Form No. 3CD, the assessee has shown gross profit of 8.62% for the previous year relevant to the assessment year 2008-2009. The assessee has taken accommodation entries of purchases from the c…

Remy Diamonds Private Limited, Mumbai vs. Principal Commissioner of Income Tax - 5, Mumbai

In the result, the appeals filed by the assessee are allowed for statistical purpose

Bench: Shri Aby T. Varkey, Jm & Shri S. Rifaur Rahman, Am आयकर अपील सं/ I.T.A. Nos. 3898 To 3900/Mum/2018 (निर्धारण वर्ा / Assessment Year: 2008-09 To 2010-11) Remy Diamonds Pvt. Ltd. बिधम/ The Principal Commissioner Gw-1060, G- Block, Bharat Of Income Tax-5 Vs. Diamond Bourse, Mumbai Aayakar Bhavan, M. K. Kurla Complex, Bandra (E), Road, Mumbai-400051 Mumbai-400051. आयकर अपील सं/ I.T.A. Nos. 5481 To 5483/Mum/2018 (निर्धारण वर्ा / Assessment Year: 2008-09 To 2010-11) Remy Diamonds Pvt. Ltd. बिधम/ Dcit, Circle-5(3)(1) Gw-1060, G- Block, Bharat Room No.573, Aayakar Vs. Diamond Bourse, Mumbai Bhavan, M. K. Road, Kurla Complex, Bandra (E), Mumbai-400020. Mumbai-400051. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aadcr2195R (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Hiren Vepari Revenue By: Smt. Mahita Nair (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 13/09/2022 घोषणा की तारीख /Date Of Pronouncement: 21/10/2022 आदेश / O R D E R Per Bench:

…ity of stock was sold by the assessee and, hence, only the profit margin embedded in such purchases would be subjected to tax and not entire purchases. The Hon’ble Gujarat High Court has again in the case of Commissioner of Income Tax v. Simit P. Sheth (2013) 356 ITR 451 upheld the order of the Tribunal directing an addition to the extent of 12.50% of the bogus purchases. 5.3. As per schedule ‘C’ to the Tax Audit Report in Form No. 3CD, the assessee has shown gross profit of 8.62% for the previous year relevant to the assessment year 2008-2009. The assessee has taken accommodation entries of purchases from the c…

Remy Diamonds Private Limited, Mumbai vs. Principal Commissioner of Income Tax - 5, Mumbai

In the result, the appeals filed by the assessee are allowed for statistical purpose

Bench: Shri Aby T. Varkey, Jm & Shri S. Rifaur Rahman, Am आयकर अपील सं/ I.T.A. Nos. 3898 To 3900/Mum/2018 (निर्धारण वर्ा / Assessment Year: 2008-09 To 2010-11) Remy Diamonds Pvt. Ltd. बिधम/ The Principal Commissioner Gw-1060, G- Block, Bharat Of Income Tax-5 Vs. Diamond Bourse, Mumbai Aayakar Bhavan, M. K. Kurla Complex, Bandra (E), Road, Mumbai-400051 Mumbai-400051. आयकर अपील सं/ I.T.A. Nos. 5481 To 5483/Mum/2018 (निर्धारण वर्ा / Assessment Year: 2008-09 To 2010-11) Remy Diamonds Pvt. Ltd. बिधम/ Dcit, Circle-5(3)(1) Gw-1060, G- Block, Bharat Room No.573, Aayakar Vs. Diamond Bourse, Mumbai Bhavan, M. K. Road, Kurla Complex, Bandra (E), Mumbai-400020. Mumbai-400051. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aadcr2195R (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Hiren Vepari Revenue By: Smt. Mahita Nair (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 13/09/2022 घोषणा की तारीख /Date Of Pronouncement: 21/10/2022 आदेश / O R D E R Per Bench:

…ity of stock was sold by the assessee and, hence, only the profit margin embedded in such purchases would be subjected to tax and not entire purchases. The Hon’ble Gujarat High Court has again in the case of Commissioner of Income Tax v. Simit P. Sheth (2013) 356 ITR 451 upheld the order of the Tribunal directing an addition to the extent of 12.50% of the bogus purchases. 5.3. As per schedule ‘C’ to the Tax Audit Report in Form No. 3CD, the assessee has shown gross profit of 8.62% for the previous year relevant to the assessment year 2008-2009. The assessee has taken accommodation entries of purchases from the c…

ITO 6 (2)(1), Mumbai vs. Chirag Mining Works Pvt. Ltd., Mumbai

Bench: Shri Vikas Awasthy & Shri Amarjit Singhआअसं.2242/मुं/2019 ("न.व. 2011-12) Income Tax Officer Circle 6 (2)(1), .....अपीलाथ"/Appellant Room No.510, 5Th Floor, Aaykarbhavan, M.K.Road, Mumbai 400 020 बनाम Vs. ..... ""तवाद"/Respondent Chirag Mining Pvt. Ltd. 408, Parshva, Chambers, 17/21, Issaji Street Vadgadi, Mumbai-400003 Pan No: Aabcc7528B

…आयकर अपील"य अ"धकरण मुंबई पीठ “"स” "ी "वकास अव"थी, "या"यक सद"य एवं "ी अमरजीत"संह, लेखा सद"य के सम" IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “C”, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER आअसं.2242/मुं/2019 ("न.व. 2011-12) Income Tax Officer Circle 6 (2)(1), .....अपीलाथ"/Appellant Room No.510, 5th Floor, AaykarBhavan, M.K.Road, Mumbai 400 020 बनाम Vs. ..... ""तवाद"/Respondent Chirag Mining Pvt. Ltd. 408, Parshva, Chambers, 17/21, Issaji Street Vadgadi, Mumbai-400003 PAN No: AABCC7528B अपीलाथ""ारा/ Appellant by : Mr. Love Kumar, Sr. AR ""तवाद" "वारा/Respon…

Magan Vadhaji Prajapati, Mumbai vs. Income Tax Officer WD 19(2) 93), Mumbai

In the result, appeal by the assessee for assessment year 2009–10 is partly allowed

Bench: Shri Om Prakash Kant & Shri Sandeep Singh Karhail

…geniune or alternatively the profit embedded in such sales can only be Magan Vadhaji Prajapati ITA No.559/Mum./2022 ITA no.560/Mum./2022 brought to tax. Accordingly, the AO, following the decision of Hon‟ble Gujarat High Court in CIT vs Simit P. Sheth, (2013) 356 ITR 451 (Guj), made an addition of Rs. 8,60,860 by considering 12.5% of the purchases as possible profit out of such purchases made through non-genuine parties. 6. In appeal, learned CIT(A) vide impugned order upheld the assessment order on this issue. Being aggrieved, the assessee is in appeal before us. 7. During the course of hearing, learned Author…

Magan Vadhaji Prajapati, Mumbai vs. Income Tax Officer WD 19(2) (3), Mumbai

In the result, appeal by the assessee for assessment year 2009–10 is partly allowed

Bench: Shri Om Prakash Kant & Shri Sandeep Singh Karhail

…geniune or alternatively the profit embedded in such sales can only be Magan Vadhaji Prajapati ITA No.559/Mum./2022 ITA no.560/Mum./2022 brought to tax. Accordingly, the AO, following the decision of Hon‟ble Gujarat High Court in CIT vs Simit P. Sheth, (2013) 356 ITR 451 (Guj), made an addition of Rs. 8,60,860 by considering 12.5% of the purchases as possible profit out of such purchases made through non-genuine parties. 6. In appeal, learned CIT(A) vide impugned order upheld the assessment order on this issue. Being aggrieved, the assessee is in appeal before us. 7. During the course of hearing, learned Author…

ACIT, Central Circle1(3), Mumbai vs. M/S. Peninsula Land Limited, Mumbai

In the result the appeal filed by the revenue is dismissed

Bench: Shri Pavan Kumar Gadale & Shri S Rifaur Rahaman, Accountat Member Ita No. 5632 & 5633/Mum/2019 (A.Y: 2009-10 & 2010-11) Acit, Cc – 1(3) Vs. M/S Peninsula Land 905, 9Th Floor, Pratistha Ltd., Bhavan, Old Cgo Bldg, No. 2, Peninsula (Annexe), M.K .Road, Spenta, Mathuradas Mumbai – 400020. Mill Compound, Senapati Bapat Marg, Parel, Mumbai- 400013. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaact5173A Appellant .. Respondent Appellant By : Shri. Aditya Rai. Dr Respondent By : Shri. Vijay Mehta.Ar Date Of Hearing 24.06.2022 Date Of Pronouncement 28.07.2022 आदेश / O R D E R Per Pavan Kumar Gadale, Jm: These Are The Two Appeals Filed The By The Revenue Against The Common Order Of The Commissioner Of Income Tax (Appeals)-47, Mumbai Passed U/S 153A R.W.S 143(3) & 250 Of The Act.

…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 @ 12.5% on such purchases. At this juncture, we consider it appropriate to refer to the findings of the CIT(A) on all the grounds of appeal at page 81 to 95 of the order read as under: 19.0 I have considered the facts of the case, submissions of the Appellant, the observations of the AO contained in the assessment or…

Income Tax Officer-25(3)(1), Mumbai vs. Vikas Manohar Bafna, Mumbai

In the result, appeal of the learned Assessing Officer is dismissed

Bench: Shri Prashant Maharishi, Am & Shri Kuldip Singh, Jm

…ded as income of the assessee or merely the profit embedded therein is the income. The learned CIT (A) ITA Nos.940,939,941/Mum/2022 Vikas Manohar Bafna; A.Ys. 09-10 to 11-12 relying on the decision of Hon'ble Gujarat High Court in case of CIT vs. Smith P Seth 356 ITR 451, wherein, it has been held that once the sale is accepted, the purchases cannot be questioned and entire purchases cannot be added but only profit element embedded therein could be added. The learned CIT (A) therefore has computed the profit margin at the rate of 6.5% of the purchases. 013. The learned Departmental Representative did not questio…

Income Tax Officer-25(3)(1), Mumbai vs. Vikas Manohar Bafna, Mumbai

In the result, appeal of the learned Assessing Officer is dismissed

Bench: Shri Prashant Maharishi, Am & Shri Kuldip Singh, Jm

…ded as income of the assessee or merely the profit embedded therein is the income. The learned CIT (A) ITA Nos.940,939,941/Mum/2022 Vikas Manohar Bafna; A.Ys. 09-10 to 11-12 relying on the decision of Hon'ble Gujarat High Court in case of CIT vs. Smith P Seth 356 ITR 451, wherein, it has been held that once the sale is accepted, the purchases cannot be questioned and entire purchases cannot be added but only profit element embedded therein could be added. The learned CIT (A) therefore has computed the profit margin at the rate of 6.5% of the purchases. 013. The learned Departmental Representative did not questio…

Income Tax Officer -25(3)(1), Mumbai vs. Vikas Manohar Bafna, Mumbai

In the result, appeal of the learned Assessing Officer is dismissed

Bench: Shri Prashant Maharishi, Am & Shri Kuldip Singh, Jm

…ded as income of the assessee or merely the profit embedded therein is the income. The learned CIT (A) ITA Nos.940,939,941/Mum/2022 Vikas Manohar Bafna; A.Ys. 09-10 to 11-12 relying on the decision of Hon'ble Gujarat High Court in case of CIT vs. Smith P Seth 356 ITR 451, wherein, it has been held that once the sale is accepted, the purchases cannot be questioned and entire purchases cannot be added but only profit element embedded therein could be added. The learned CIT (A) therefore has computed the profit margin at the rate of 6.5% of the purchases. 013. The learned Departmental Representative did not questio…

DCIT 4(3)(1), Mumbai vs. M/S.Opel Paper Mills Limited, Mumbai

In the result, appeal filed by the assessee is dismissed and appeal of the learned assessing officer is partly allowed

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm The Dy. Commissioner Of M/S Opel Paper Mills Limited Income Tax, 97, Dadiseth Agiary Lane, Central Circle 4(3)(1) Vs. Kalbadevi Road, Aayakar Bhavan, 6Th Floor, Mk Road, Mumbai-400 002 Mumbai-400 020 (Appellant) (Respondent) Pan No.Aaaco7129H The Dy. Commissioner Of Income Tax, M/S Opel Paper Mills Limited Central Circle 4(3)(1) 97, Dadiseth Agiary Lane, Vs. Aayakar Bhavan, Kalbadevi Road, 6Th Floor, Mk Road, Mumbai-400 002 Mumbai-400 020 (Appellant) (Respondent)

…king channel but are rooted through journal entries. The AO has further stated that there is no evidence of transportation of the goods from buyer to the seller. Therefore, following the decision of the honourable Gujarat High Court in CIT versus Smit P Sheth 356 ITR 451 he sustained the disallowance in court to 12.5% of bogus purchases he noted that the total purchases of ₹ 888,827,942/– is made from specialty papers private limited and ₹ 14,848,200/– is from another sister concern global paper Impex Ltd amounting in all to ₹ 903,676,142/– and 12.5% of the same comes to ₹ 112,959,517/–. He sustained this additio…

M/S.Opel Paper Mills Limited, Mumbai vs. DCIT 4(3)(1), Mumbai

In the result, appeal filed by the assessee is dismissed and appeal of the learned assessing officer is partly allowed

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm The Dy. Commissioner Of M/S Opel Paper Mills Limited Income Tax, 97, Dadiseth Agiary Lane, Central Circle 4(3)(1) Vs. Kalbadevi Road, Aayakar Bhavan, 6Th Floor, Mk Road, Mumbai-400 002 Mumbai-400 020 (Appellant) (Respondent) Pan No.Aaaco7129H The Dy. Commissioner Of Income Tax, M/S Opel Paper Mills Limited Central Circle 4(3)(1) 97, Dadiseth Agiary Lane, Vs. Aayakar Bhavan, Kalbadevi Road, 6Th Floor, Mk Road, Mumbai-400 002 Mumbai-400 020 (Appellant) (Respondent)

…king channel but are rooted through journal entries. The AO has further stated that there is no evidence of transportation of the goods from buyer to the seller. Therefore, following the decision of the honourable Gujarat High Court in CIT versus Smit P Sheth 356 ITR 451 he sustained the disallowance in court to 12.5% of bogus purchases he noted that the total purchases of ₹ 888,827,942/– is made from specialty papers private limited and ₹ 14,848,200/– is from another sister concern global paper Impex Ltd amounting in all to ₹ 903,676,142/– and 12.5% of the same comes to ₹ 112,959,517/–. He sustained this additio…