CIT v. Simit P. Sheth

Shri Chirag Rajendra Shah, Mumbai vs. ITO 31(1) (1), Mumbai

In the result, appeals filed by the assessee are allowed

Bench: Shri Pavan Kumar Gadale, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

…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…

Shri Chirag Rajendra Shah, Mumbai vs. ITO 31(1) (1), Mumbai

In the result, appeals filed by the assessee are allowed

Bench: Shri Pavan Kumar Gadale, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

…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…

Rajendra Tubes & Fittings, Mumbai vs. ITO Ward 19(3) (1), Mumbai

In the result, the appeals of the assessee are allowed for both the assessment years, since no change in facts or law could be brought to our notice

…or addition of 12.5% of hawala purchase amount as per note sheet dated 10.03.2015. 6. After considering the submission and the discussion as above and finally relying on the Gujarat High Court decisions in the case of CIT Vs Simit P. Sheth (2013) reported in 356 ITR 451 (Guj .) and also giving due consideration to the fact that the assessee has recorded such purchases in the books of account, I am of the considered opinion that 12.5% of total amount of said purchases, which comes to Rs.28,58,433/- is taken as unproved/non-genuine purchases and added to the total income of the assessee. Penalty proceedings ws.271…

Rajendra Tubes & Fittings, Mumbai vs. ITO Ward 19(3) (1), Mumbai

In the result, the appeals of the assessee are allowed for both the assessment years, since no change in facts or law could be brought to our notice

…or addition of 12.5% of hawala purchase amount as per note sheet dated 10.03.2015. 6. After considering the submission and the discussion as above and finally relying on the Gujarat High Court decisions in the case of CIT Vs Simit P. Sheth (2013) reported in 356 ITR 451 (Guj .) and also giving due consideration to the fact that the assessee has recorded such purchases in the books of account, I am of the considered opinion that 12.5% of total amount of said purchases, which comes to Rs.28,58,433/- is taken as unproved/non-genuine purchases and added to the total income of the assessee. Penalty proceedings ws.271…

Shri Pravin Futarmal Jain, Mumbai vs. Income Tax Officer 18(2) (5), Mumbai

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

Bench: Shri Kuldip Singh () & Shri Om Prakash Kant () Assessment Year: 2009-10 Shri Pravin Futarmal Jain, Income Tax Officer, 18(2)(5), Office No. 6, Jewel Co-Op. Earnest House, Ncpa Marg, Society Ltd., 3Rd Floor, 44/46, Vs. Nariman Point, Dhanji Street, Mumbai-400021. Mumbai-400 003 Pan No. Aacpj 5627 L Appellant Respondent Assessee By : Mr. Vimal Punmiya, Ar Revenue By : Mr. Kiran P. Unavekar, Dr Date Of Hearing : 31/05/2022 Date Of Pronouncement : 31/05/2022

…g such bogus bills are in the form of saving VAT, saving of transportation charges and various taxes etc. The AO has made addition of 12.5% of bogus purchases. In my opinion, the ratio of the judgment of Hon'ble Gujarat High Court in the case of Simit P. Seth 356 ITR 461 (Guj.)is applicable to the facts and circumstances of the appellant's case. Here, the Hon'ble Court has held that disallowance of 12.5% of the purchases from such hawala dealers will be justified based on the premise that the appellant have derived benefit to this extent based on his nature of business. Thus, the disallowance of purchase is uphel…

DCIT-19(1), Mumbai vs. Hemantkumar Sumermal J. Bhansali, Mumbai

Bench: Shri M. Balaganesh & Shri Kuldip Singhassessment Year: 2011-12 Dy. Cit 19(1), Mr. Hemantkumar 2Nd Floor, Sumermal J. Bhansali, 6/B, 52/54, 1St Floor, Room No.203, Vs. Matru Mandir Bldg., C.P. Tank Road, Tardeo Road, Mumbai- 400 004 Mumbai – 400 007 Pan: Aabpb6379C (Appellant) (Respondent)

…der consideration and the profit to that extent is added .back to the income of the assessee for the year under consideration. Having regard to the facts and circumstances of the case as well as Gujarat high Court decision in the case of Simit P Sheth (2013) (356 ITR 451 (Guj).) being the possible profit out of the purchases made through non-genuine parties known as tainted purchases and thereby, the addition to be restricted to an extent of Rs.2,11,062/(12.5% of Rs.42,21,237/-). 6.1.12 Further the courts have taken a view that in case of non- existent parties from Whom the purchases are shown to have been made,…

Himmatlal G Thakkar, Mumbai vs. ITO Ward 22 (1)95), Mumbai

Bench: Shri M. Balaganesh & Shri Kuldip Singhassessment Year: 2009-10

…ied the matter before the Ld. CIT(A) by way of filing appeal who has restricted the disallowance to the extent of 12.5% of the purchases made from the suspicious dealers by following the decision rendered by Hon’ble Gujarat High Court in case of Simit P. Seth 356 ITR 461 (Guj.). Feeling aggrieved the assessee has come up before the Tribunal by way of filing present appeal. 4. Despite issuance of the notice to the assessee none appeared on behalf of him, so the Bench decided to decide this appeal on the 4 Shri Himmatlal G. Thakkar basis of material available on record with the assistance of the Ld. D.R. for the…

Tncome Tax Officer (3) (1), Mumbai vs. Shri Ram Ujagir Ram Sabda Pandey, Mumbai

In the result, the appeal filed by the revenue is

Bench: Shri M. Balaganesh () & Shri Pavan Kumar Gadale () Assessment Year: 2010-11 Ito-20(3)(1), Shri Ram Ujagir Ram Sabda Room No. 622, 6Th Floor, Pandey, Vs. Piramal Chamber, 238/5, Sethia Compound Lalbaug, Kolsa Bunder, Darukhana Mumbai-400012. Reay Road, Mumbai-400010. Pan No. Agupp3934C Appellant Respondent : Ms. Samruddhi Hande, Dr Revenue By : None Assessee By Date Of Hearing : 23/05/2022 Date Of : 26/05/2022 Pronouncement

…e Tribunal decisions and took a view. Shri Ram Ujagir Ram Sabda Pandey 6 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 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 to take a different v…

Kailash Shrichand Makhija, Mumbai vs. Income Tax Officer 24(2) (4), Mumbai

In the result, appeal of the assessee is partly allowed

Bench: Shri Vikas Awasthy, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

…nd held that in case purchases claims to have made from alleged hawala dealers , only profit element embedded in those purchases needs to be taxed, but not total purchase from those parties. The Hon’ble Gujarat High Court, in the case of CIT vs Simith P.Sheth 356 ITR 451 had considered a similar issue and held that at the time of estimation of profit from alleged bogus purchases no uniform yardsticks could be adopted, but it depends upon facts of each case. The ITAT, Mumbai, in number of cases had considered an identical issue and depending upon facts of each case, directed the Ld.AO to estimate profit of 10 to 1…

Shailesh R. Somani, Mumbai vs. Income Tax Officer Ward 19(3) (3), Mumbai

In the result, appeal by assessee is partly allowed

Bench: Shri Vikas Awasthy & Shri S.Rifaur Rahman आअसं.1455/मुं/2021 ("न.व. 2010-11) Shailelsh R. Somani, B/307, Indraprastha Ii, Jitendra Road, Malad (E), Mumbai 400 097 Pan: Anwps-2126-C ...... अपीलाथ" /Appellant बनाम Vs. Income Tax Officer Wd 19(3)(3), ..... ""तवाद"/Respondent Mumbai अपीलाथ" "वारा/ Appellant By : Shri Mandar Vaidya, Advocate With C.A H.K Chheda ""तवाद" "वारा/Respondent By : Shri Suresh Pariasamy सुनवाई क" "त"थ/ Date Of Hearing : 11/05/2022 घोषणा क" "त"थ/ Date Of Pronouncement : 19/05/2022 आदेश/ Order

…ove genuineness of purchases made from hawala operators, hence, the Assessing Officer made addition by estimating suppressed profit margin @12.5%. The CIT(A) has upheld the same following the decision rendered in the case of CIT vs. Simit P. Sheth reported as 356 ITR 451 (Guj). 9. Both sides heard, orders of authorities below examined. The solitary issue raised in the appeal is with respect to addition made on account of bogus purchases. Undisputedly, the assessee has failed to prove genuineness of purchases from alleged hawala operators. The Hon’ble Jurisdictional High Court in the case of PCIT vs. Paramshakhti…

The ITO-20(2)(1), Mumbai vs. Shri Fakir Mohamed Gani Malim, Mumbai

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

Bench: Shri Pavan Kumar Gadale & Shri Gagan Goyalthe Ito – 20(2)(1) Vs. Fakir Mohamed Gani Room No. 110, Pirmal Malim Chambers, Lalbaug, Parel Gala No. 107, Navyug Mumbai – 400012 Industrial Estate Tokershi, Jivaji Road, Sewree, Mumbai – 400012. Pan/Gir No. : Aacpm5093K Appellant .. Respondent Appellant By : Ms.Indira Adakil. Dr) Respondent By : None Date Of Hearing 12.04.2022 Date Of Pronouncement 21.04.2022 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)-55, Mumbai Passed U/S 143(3) & 147 Of The Act. The Revenue Has Raised The Following Grounds Of Appeal:

…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 @ 10% 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 the…

Harmeet Singh Sablok, Mumbai vs. The ITO WD 22(1) (5), Mumbai

In the result, appeal of the assessee is allowed

Bench: Shri Amarjit Singh, Hon'Ble & Shri S. Rifaur Rahman, Hon'Bleharmeet Singh Sablok V. Income Tax Officer – 22(1)(5) A/24, Queens Park Premises Chs Ltd., Piramal Chambers Juhu, Santacruz (W) Lalbaug, Mumbai – 400012 Mumbai - 400049 Pan: Alrps3621D (Appellant) (Respondent) Assessee By : Shri Kalpesh Turalkar Department By Smt Bharati Singh

…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…

S.S. Metal &Alloys, Thane vs. ITO, Ward-3(5), Thane

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Ble

…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…

S.S. Metal &Alloys, Thane vs. ITO, Ward-3(5), Thane

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Ble

…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…

ITO -32(1)(1), Mumbai vs. Brijesh Raithatha, Mumbai

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

…tam Bajaj, (supra) as well as the decision of Ahmedabad Bench of the Tribunal, rendered in similar facts and circumstances, in the case of Shri Smit P Sheth Vs ITO: ITA No.3238 & 3293/Ahd./2009 which has since been confirmed by Hon‟ble Gujarat High Court (ITR 256 ITR 451). In the present case, the purchases were held to be bogus as the same were made from open/grey market, sales have been accepted by the Assessing Officer and the CIT(A) has, in paragraph 3.4 of his order, returned a finding that the Assessee has been able to explain the source of expenditure from his bank account statement, purchase invoices and…

Afcons Infrastructure Ltd., Mumbai vs. Pr. CIT -(1), Mumbai

Bench: Shri M. Balaganesh & Shri Kuldip Singhassessment Year: 2010-11

…igh Courts and Tribunal, reached the conclusion that “bogus entry transactions in question are non genuine and allowed the same to be accommodation entries”. The AO by following the decisions rendered by Hon’ble Gujarat High Court in cases of Simit P. Sheth 356 ITR 451 (Guj.) and CIT vs. Bholanath Poly Fab P. Ltd. proceeded to make addition of Rs.99,21,000/- (612.5% of Rs.7,93,68,000/-) along with commission @ 1% amounting to Rs.7,93,680/- to the total income 12 M/s. Afcons Infrastructure Ltd. of the assessee. Addition made by the AO has been accepted by the assessee company by not filing any further appeal.…

ITO 32 (2)(5), Mumbai vs. Shri. Priteh Mafatlal Shah, Mumbai

In the result, appeal of the revenue is dismissed

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Ble

…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…