CIT v. Simit P. Sheth

ACIT, -32(1), Mumbai vs. M/S Times Construction Co., Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Bleacit – 32(1) V. M/S. Times Construction Company F-121, Earth Residency Room No. 702, 7Th Floor Deep Narayan Dubey Marg Kautilya Bhavan Dahisar (E), Mumbai - 400068 Bandra Kurla Complex Bandra(E), Mumbai - 400051 Pan: Aaeft3644F (Appellant) (Respondent) None Assessee By : Department By Shri Sajay J. Shethi

…this aspect of the matter elaborately with reference to the submissions of the assessee and the averments in the Assessment Order and following 4 M/s. Times Construction Company decision of the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Sheth [356 ITR 451] restricted the addition to 12.5% of the non-genuine purchases. While holding so, the Ld.CIT(A) observed as under: - “5. I have considered the facts of the case submission made and the assessment order. My considered opinion is as under: I have considered the AO's contentions and the reasons for making the addition. Based on information from the…

ITO - 31(2)(3), Mumbai vs. M/S Moazam K. Shaikh, Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Bleincome Tax Officer – 31(2)(3) V. M/S. Moazam Khwaja Shaik Room No. 613, 6Th Floor 12-A, Tahira Compund Kautilya Bhavan Premsons Shopping Centre Bandra Kurla Complex Caves Road, Jogeshwari(E) Bandra(E), Mumbai - 400051 Mumbai - 400060 Pan: Besps5656B (Appellant) (Respondent) None Assessee By : Department By Shri Sajay J. Shethi

…sidered this aspect of the matter elaborately with reference to the submissions of 4 M/s. Moazam Khwaja Shaik the assessee and the averments in the Assessment Order and following decision of the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Sheth [356 ITR 451] restricted the addition to 12.5% of the non-genuine purchases. While holding so, the Ld.CIT(A) observed as under: - “7.3.1 I have considered the submission of the appellant, carefully gone through the order of the AO, perused the material on record, and referred to the case laws relied upon by the appellant and the AO. 7.3.2 Revised Ground No. 3…

ACIT-26(2), Mumbai vs. Smt. Pushpa Madan Sharma, Mumbai

Accordingly, backed by our aforesaid deliberations we find no merit in the appeal of the revenue and dismiss the same. The Grounds of appeal A to G are dismissed

Bench: Shri Shamim Yahya () & Shri Ravish Sood () & Asstt. Commissioner Of Smt. Pushpa Madan Income Tax- 26(2), Vs. Sharma, Row House No. Room No. 320, 3Rd Floor, 22, Grace Dieu Co.Op. Kautilya Bhawan, B.K.C., Hsg. Soc. Ltd., Near Bandra (E), Powai Garden, Powai, Mumbai – 400 051 Mumbai – 400 076 Pan No. Bcxps8613P (Revenue) (Assessee) Revenue By : Shreekala Pardeshi, (Dr) Assessee By : None Date Of Hearing : 07/09/2021 Date Of Pronouncement : 21/09/2021 Order Per Ravish Sood, J.M: The Present Appeals Filed By The Revenue Are Directed Against The Respective Orders Passed By The Commissioner Of Income Tax (Appeals)-38, Mumbai [For Short „Cit(A)‟] Dated 18.12.2019 For A.Y 2010-11, Which In Turn Arises From The Respective Orders Passed By The A.O U/S 143(3) Of The Income- Tax Act, 1961 (For Short “Act”), Dated 08.03.2013 & Under Sec. 143(3) R.W.S. 147 Of The Act, Dated 11.02.2016. As Common Issues Are Involved In The Aforementioned Appeals, Therefore, The Same Are Being Taken Up & Disposed Off By Way Of A Consolidated Order. We Shall First Take Up The Appeal Which Finds

….88 as gross profit arid make necessary deductions accordingly. Accordingly, the said question is answered partially in favour of the assessee and partially in favour of the revenue." 7.2.10 The Hon‟ble High Court of Gujarat in the case GIT vs. Simit P Sheth, 356 ITR 451 (Guj) in its order dated 16.01.2013: laid down the maximum that addition of profit element embedded in the said transactions would be fair and rational. The Hon‟ble Gujarat High Court has upheld the estimation of profit ranging from 12% to 15% depending upon the nature of the business in adjudicating the issue of bogus purchase in the case cited…

ITO Ward 6(3)(4), Mumbai vs. M/S Khanna and Sawant Interiors Pvt Ltd., Mumbai

Bench: Shri Pramod Kumar () & Shri Ravish Sood () [Assessment Year: 2010-11] Ito, Ward -6(3)(4) M/S Khanna & Sawant Interiors Aayakar Bhavan, R. No. 576, Vs. Pvt. Ltd., 4, Castlin House, M.K. Road, Mumbai – 400 020 Pitamber Lane, Mahim, Mumbai – 400 016

…value of the impugned purchases is concerned, we are of the considered view that the same had fairly been adopted by the CIT(A). Our aforesaid view is fortified by the judgment of the Hon‟ble High Court of Gujarat in the case of CIT Vs. Simit P. Sheth (2013) 356 ITR 451 (Guj). Accordingly, finding no infirmity in the view taken by the CIT(A), we uphold his order. 8. Resultantly, the appeal filed by the revenue is dismissed. Order pronounced in the open court on 17.09.2021 (Pramod Kumar) JUDICIAL MEMBER Mumbai; Dated: 17.09.2021 PS: Rohit Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. T…

Shri Himanshu Dilip Jain, Mumbai vs. ACIT 19(1), Mumbai

The appeal of the assessee is partly allowed for statistical purposes in terms of our aforesaid observations

Bench: Shri Pramod Kumar () & Shri Ravish Sood () Ita Nos.1099 & 1100/Mum/2020 [Assessment Years: 2010-11 & 2011-12] Shri Himanshu Dilip Jain Acit-19(1) 173, Kika Street, Vs. Room No. 228, Matru Mandir, Gulal Wadi, Tardeo Grant Road, Mumbai – 400 004 Mumbai – 400 007

…ITA Nos. 1099 & 1100/Mum/2020 A.Ys. 2010-11 & 2011-12 1 Shri Himanshu Dilip Jain Vs. ACIT-19(1) IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “H” MUMBAI BEFORE SHRI PRAMOD KUMAR (VICE PRESIDENT) AND SHRI RAVISH SOOD (JUDICIAL MEMBER) ITA Nos.1099 & 1100/MUM/2020 [Assessment Years: 2010-11 & 2011-12] Shri Himanshu Dilip Jain ACIT-19(1) 173, Kika Street, Vs. Room No. 228, Matru Mandir, Gulal Wadi, Tardeo Grant Road, Mumbai – 400 004 Mumbai – 400 007 PAN No. AGHPJ1641F (Assessee) (Revenue) Revenue by : Shri Deepkant Prasad, D.R Assessee by : Shri Morvi Chaturvedi, A.R Date of Hearing : 14/09/2021 Date o…

ITO-32(1)(5), Mumbai vs. Harshad Vinodrai Sheth HUF, Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Bleincome Tax Officer – 32(1)(5) V. Harshad Vinodrai Sheth Huf Room No. 729, 7Th Floor E-1204, Vrindavan, Rambaug Lane Off S.V. Road, Mumbai -400092 Kautilya Bhavan Bandra Kurla Complex Pan: Aetpm9315B Bandra(E), Mumbai - 400051 (Appellant) (Respondent) Assessee By : None Department By Shri Sanjay J. Sethi

…t of the matter elaborately with reference to the submissions of the assessee and the averments in the Assessment Order and following various judicial pronouncements and also the decision of the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Sheth [356 ITR 451] restricted the disallowance to 12.5% of the non-genuine purchases. While holding so, the Ld.CIT(A) observed as under: - “3.9 The Hon’ble ITAT, Mumbai vide its order dated 18.01.2017 in the case of Smt. Kiran Navin Doshi in ITA No. 2601/Mum/2016, under similar circumstances, where the Assessing Officer had disallowed/added the entire alleged bogu…

ITO- 28(1) (4), Mumbai vs. M/S Felie Amit Bavisi, Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Bleincome Tax Officer – 28(1)(4) V. M/S. Feelie Amit Bavisi 610, Plot No.86, Thacker Tower Room No. 330, 3Rd Floor Sector -17, Vashi Tower No. 6 Navi Mumbai -400703 Vashi Railway Station Complex Vashi, Navi Mumbai -400703 Pan: Abypb8391E (Appellant) (Respondent) Assessee By : None Department By Shri Sanjay J. Sethi

…that the Ld.CIT(A) considered this aspect of the matter elaborately with reference to the submissions of the assessee and the averments in the Assessment Order and following the decision of the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Sheth [356 ITR 451] restricted the disallowance to 12.5% of the non- genuine purchases made from M/s. Manav Impex amounting to ₹.19,25,560/-, while holding so, the Ld.CIT(A) observed as under: - “6 I have considered the facts of the case and the appellant's submissions. 7. The only Ground of Appeal is against addition of Rs.5,16,665/- being 12.5% of bogus purchases…

Cyclone Retailing & Clothing Pvt, Mumbai vs. ITO 6(2)(2), Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Bleincome Tax Officer – 6(2)(2) V. M/S. Cyclone Retailing & Clothing Pvt. Ltd., Room No. 510, 5Th Floor Shop No. 6 & 8, Dehnoo Building Aayakar Bhavan, M.K. Road Dr. Babasaheb Ambedkar Road Mumbai - 400020 Parel, Mumbai -400012 Pan: Aaccc9368E (Appellant) (Respondent) Assessee By : None Department By Shri Sanjay J. Sethi

…that the Ld.CIT(A) considered this aspect of the matter elaborately with reference to the submissions of the assessee and the averments in the Assessment Order and following the decision of the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Sheth [356 ITR 451] restricted the disallowance to 12.5% of the 4 M/s. Cyclone Retailing & Clothing Pvt. Ltd., non-genuine purchases. While holding so, the Ld.CIT(A) observed as under: - “3. Only ground raised by the appellant relate to the addition of Rs.3,24,319 being 100% of the purchases as non-genuine purchases. The AO has mentioned in the order that as per th…

ITO - 26(2)(5), Mumbai vs. Late Shri. Rustamali Kasamali Kapoor, Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Bleincome Tax Officer – V. Late Shri Rustamali Kasamali Kapoor Legal Heir Shri Mohammad Salman 26(2)(5) Flat No. 302, Sai Kutir Chs Ltd., Room No. 314, 3Rd Floor Lbs Marg, Near Taximens Colony Kautilya Bhavan Kurla (W), Mumbai -400070 Bandra Kurla Complex Bandra(E), Mumbai - 400051 Pan: Aabpk5011C (Appellant) (Respondent) Assessee By : None Department By Shri Sanjay J. Sethi

…t of the matter elaborately with reference to the submissions of the assessee and the averments in the Assessment Order and following various judicial pronouncements and also the decision of the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Sheth [356 ITR 451] restricted the disallowance to 12.5% of the non-genuine purchases. While holding so, the Ld.CIT(A) observed as under: - “8.2.3 On careful consideration of the above submission, I find the documents produced before the AO in support of the claim that the purchases from the alleged seven parties are genuine are inadequate to establish genuineness…

Smt Lalita Babulal Kanungo, Mumbai vs. ITO 19(2)(1), Mumbai

In the result, the appeal of the revenue is dismissed

Bench: Shri Mahavir Singh & Shri Rajesh Kumarassessment Year: 2010-11

…ee is to prove the sources of purchase. We note that the despite the assessee’s undisputed facts as to purchases being made from grey market, the ld CIT(A) has tried to distinguish the decision of Gujrat High court in the case of CIT vs. Simit P. Sheth (2013) 356 ITR 451(Guj) wherein it has been held that in case of bogus purchases only profit element embedded in the bogus purchases is to be assessed. Similary the ld CIT(A) tried to distinguish the decision of Hon’ble Bombay High Court in the case Mohommad Hazi Adam & Co dated 11.02.2019. After taking into account the facts of the assessee we are of the considere…

ITO -8(2)(2), Mumbai vs. M/S. Simandar Herbal P. Ltd., Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Bleincome Tax Officer – 8(2)(2) V. M/S. Simandar Herbal Pvt. Ltd., Room No. 622, 6Th Floor Shop No. 86, Dallas Building Aayakar Bhavan, M.K. Road Gya Mandir Road Mumbai - 400020 Off. S.K. Bole Road Dadar (W), Mumbai -400028 Pan: Aagc0699Q (Appellant) (Respondent) Prayag Jha Assessee By : Department By Smita Verma

…reference to the submissions of the assessee and the averments in the Assessment Order and following various judicial pronouncements along with decision of the Hon'ble 4 M/s. Simandar Herbal Pvt. Ltd., Gujarat High Court in the case of CIT v. Simit P. Sheth [356 ITR 451] restricted the addition to 12.5% of the non-genuine purchases. While holding so, the Ld.CIT(A) observed as under: - “Similarly, in yet another decision of Hon'ble Gujarat High Court in the case of CIT v. Simit P. Sheth (2013) 38 Taxmann.com 385 (Guj), Hon'ble Court was seized with a similar issue where the A.O. had found that some of the alleged…

ITO - 19 (3)(4), Mumbai vs. Suresh U. Mehta, HUF, Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Bleincome Tax Officer – 9(3)(4) V. M/S. Suresh U Mehta Huf Room No. 210, 2Nd Floor 9/1, Saphalya Building Matru Mandir, Tardev Road Tarabaug, Sheth Motishah Lane Mumbai – 400 007 Mazagaon, Mumbai -400007 Pan: Aaahm6719E (Appellant) (Respondent) None Assessee By : Department By Smita Verma

…ect of the matter elaborately with reference to the submissions of the assessee and the averments in the Assessment Order and following various judicial pronouncements along with decision of the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Sheth [356 ITR 451] restricted the addition to 12.5% of the non-genuine purchases. While holding so, the Ld.CIT(A) observed as under: - “4.2.4 conclusion on Case laws: The net conclusion that can be arrived at from the above discussion is that where the sales and purchases are verifiable and proven e.g. to or from government bodies or agencies etc no addition may b…

ITO 19 (2)(5), Mumbai vs. Pravin K.Mehta, Mumbai

Bench: Shri C.N. Prasad, Hon'Bleincome Tax Officer – 19(2)(1) V. Shri Pravin K. Mehta Room No. 210, 2Nd Floor Room No. 67, 1St Floor Matru Mandir, Tardev Road Dinesh Bhavan Mumbai – 400 007 64, C.P. Tank Road Mumbai - 400004 Pan: Ahepm6224H (Appellant) (Respondent) None Assessee By : Department By Smita Verma

…ect of the matter elaborately with reference to the submissions of the assessee and the averments in the Assessment Order and following various judicial pronouncements along with decision of the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Sheth [356 ITR 451] restricted the addition to 12.5% of the non-genuine purchases. While holding so, the Ld.CIT(A) observed as under: - “4.2.4 conclusion on Case laws: The net conclusion that can be arrived at from the above discussion is that where the sales and purchases are verifiable and proven e.g. to or from government bodies or agencies etc no addition may b…

ITO 33 (1)(2), Mumbai vs. Amit Enterprises, Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Bleincome Tax Officer – 33(1)(2) V. M/S. Amit Enterprises Kautilya Bhavan, Room No. 945 A/6, Suman Apartment 9Th Floor, Bandra Kurla Complex Shankar Lane, Kandivali (W) Bandra(E), Mumbai - 400051 Mumbai -400067 Pan: Aagc0699Q (Appellant) (Respondent) Rajesh Kothari Assessee By : Department By Smita Verma

…find that the Ld.CIT(A) considered this aspect of the matter elaborately with reference to the submissions of the assessee and the averments in the Assessment Order and following decision of the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Sheth [356 ITR 451] restricted the addition to 12.5% of the non-genuine purchases. While holding so, the Ld.CIT(A) observed as under: - “3.2 I have considered the assessment order and the submissions of the appellant including the case laws cited. The AO held in the assessment order that the appellant produced the details with regard to purchases made. Assessee als…

Ramesh R. Jain, Mumbai vs. ITO Ward 19 (3)91), Mumbai

In the result, appeal of the assessee is partly allowed

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

…urned income of the assessee. Aggrieved, assessee preferred the appeal before CIT(A), who confirm the action made by the AO by observing in paras 7.3.5 & 7.3.6 by following the decision of Hon'ble Gujarat High Court in the case of CIT vs. Smith P. Seth (2013) 356 ITR 451 (Guj) by observing as under: "7.3.6 In the present case, AO concluded that the assessee indulged in non-genuine transaction and intention of indulging in such activity is to suppress the true profits and to x reduce the tax liability. Therefore, an addition on account of a higher margin of profit is fair and equitable. In the decision of Hon'ble…

Macleods Pharmaceuticals Ltd, Mumbai vs. Deputy Commissioner of Income Tax 10(2)(2), Mumbai

In the result, appeal of the assessee is partly allowed as indicated above

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

…uch purchases would be subject to tax but only the profit element embedded therein. Similar view has been taken by the Hon'ble 16 ITA.NO. 7167/MUM/2017 (A.Y: 2009-10) M/s. Macleods Pharmaceuticals Ltd., Gujarat High Court in the case of CIT v. Simit P. Seth [356 ITR 451]. Simply because the parties were not produced the entire purchases cannot be added as held by the Bombay High Court in the case of CIT v. Nikunj Eximp [216 Taxman.com 171]. However, at the same time keeping in view the nature of business of the assessee and the fact that the assessee is making some local purchases without any transportation bill…

Shri. Dinesh B Shah, Mumbai vs. ITO 19 (1)(4), Mumbai

In the result, assessee’s appeal stands allowed partly

Bench: Shri Mahavir Singh & Shri S. Rifaur Rahman

…the sales have not been doubted by Department cannot be advanced as all to hold unsubstantiated purchases per Sec. 37(1) as an expenditure. It is pertinent to note that the oft cited I Hon'ble Gujarat high Court decision in the case of Simit P. Sheth ((2013) 356 ITR 451) is based on the fact that where purchases were made from grey market, only profit element embedded in such purchase could be added to assessee's income and accordingly upheld ITAT's estimation of profit @' 15 % of bogus purchases. 6.12 The facts in the recent decision of the Hon'ble Bombay high Court in the case of M/s Mohommad Haji Adam & Co. d…

ITO 17(3)(5), Mumbai vs. Smt. Urmila Kirit Mehta, Mumbai

In the result, the appeal is 'Partly Allowed'

Bench: Shri C.N. Prasad, Hon'Bleincome Tax Officer – 17(3)(5) V. Smt Urmila Kirit Mehta Room No. 131, 1St Floor 10, Hornby Building Kautilya Bhavan, G-Block 172/174, Dr. D.N. Road Bandra Kurla Complex Mumbai - 400001 Bandra(E), Mumbai - 400051 Pan: Aahpm2734N (Appellant) (Respondent) Assessee By : None Department By Shri Sanjay J. Sethi

…dered this aspect of the matter elaborately with reference to the submissions of 4 Smt Urmila Kirit Mehta the assessee and the averments in the Assessment Order and following the decision of the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Sheth [356 ITR 451] restricted the disallowance to 12.5% of the non-genuine purchases of ₹.3,00,948/-, while holding so, the Ld.CIT(A) observed as under: - “5.7 In this context, therefore, it is pertinent to note that the High Court of Gujarat in the case of Commissioner of Income-tax v. Simit P. Sheth [2013] 356 ITR 451 (Gujarat) has held that where purchases were…

ITO 22(1)(6), Mumbai vs. Broadcasting Services, Mumbai

In the result, appeal of the revenue is dismissed

Bench: Shri C.N. Prasad, 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…

ACIT 26(2), Mumbai vs. M/S Rasa Technology, Mumbai

In the result, the appeal of the Revenue is dismissed

Bench: Shri Saktijit Dey & Shri Rajesh Kumarassessment Year: 2011-12

…ith section 147 of the Act dated 26.12.2018. 5. In the appellate proceedings, the Ld. CIT(A) partly allowed the appeal of the assessee by directing the AO to apply rate of 12.5% of the bogus purchases by following the decision of CIT vs. Simit P. Sheth (2013) 356 ITR 451 (Guj) by holding that only profit embedded in the bogus purchases can be brought to tax and not the entire purchases. 6. After hearing the Ld. D.R. and perusing the material on record, we observe that Ld. CIT(A) has passed the appellate 3 M/s. Rasa Technology order after following the decision of Hon’ble Gujarat High Court in the case of CIT vs…