CIT v. Simit P. Sheth

M/S. Facets, Mumbai vs. ITO 24(1)(3), Mumbai

The appeal stands dismissed

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode)

…y the assessee were not to be accepted as genuine purchases. Finally, Ld. estimated Gross Profit addition of 21.36% against these purchases. 3. Upon further appeal, Ld. CIT(A), relying upon the decision of Hon’ble Gujarat High Court in CIT V/s Simit P. Sheth (356 ITR 451), estimated the additions @12.5%. Aggrieved, the assessee is in further appeal before us. 4. Going by the factual matrix as enumerated in the orders of lower authorities, we find that the Sales Turnover was not in doubt and the assessee was in possession of primary purchase documents. The payment to the supplier was through banking channels. Ther…

DCIT Circle-15(3)(2), Mumbai vs. M/S Sonak Engineering Pvt Ltd., Navi Mumbai

The appeal stands dismissed

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकरअपील िं./ I.T.A. No.7287/Mum/2019 (धििाारण वर्ा / Assessment Year: 2011-12) Dcit-15(3)(2) M/S Sonak Engineering Pvt. Ltd. R.No.451, 4Th Floor बिाम/ R-371, Ttc Industrial Area Aaykar Bhawan, M.K.Road Thane Belapur Rabale Vs. Mumbai – 400 020 Navi Mumbai – 400 701 स्थायीलेखा िं./ जीआइआर िं./ Pan/Gir No. Aagcs-0120-A (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Assessee By : None Revenue By : Shri Gurbinder Singh-Ld. Dr ुनवाई की तारीख/ : 22/04/2021 Date Of Hearing घोषणा की तारीख / : 03/05/2021 Date Of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal ()

…aforesaid purchases were treated as bogus purchases and added to the income of the assessee. 4. Upon further appeal, Ld. CIT(A), after considering factual matrix and relying upon the decision of Hon’ble Gujarat High Court in the case of CIT V/s Simit P.Sheth (356 ITR 451), estimated additions of 12.5% against these purchases. Aggrieved, the revenue is in further appeal before us. 5. Going by the factual matrix as enumerated in the orders of lower authorities, we find that the issue has rightly been clinched in proper perspective by Ld. CIT(A). The Sales Turnover was not in doubt and the assessee was in possession…

DCIT 14 (3)(2), Mumbai vs. Seco Warwick Allied Pvt Ltd., Thane

The appeal stands dismissed

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकरअपील िं./ I.T.A. No.7114/Mum/2019 (धििाारण वर्ा / Assessment Year: 2009-10) Dcit-14(3)(2) Seco Warwick Allied Pvt. Ltd. R.No.455, 4Th Floor बिाम/ 5Th Floor, Amfotech I.T.Work Aaykar Bhawan, M.K.Road Road No.8, Wagle Industrial Midc Vs. Mumbai – 400 020 Thane - 400604 स्थायीलेखा िं./ जीआइआर िं./ Pan/Gir No. Aaaca-8938-Q (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Assessee By : None Revenue By : Shri Gurbinder Singh-Ld. Dr ुनवाई की तारीख/ : 20/04/2021 Date Of Hearing घोषणा की तारीख / : 03/05/2021 Date Of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal ()

…ed to the income of the assessee. 4. Upon further appeal, Ld. CIT(A), opined that since sales transactions were not disputed by Ld. AO, entire purchases could not be disallowed. Relying upon the decision of Hon’ble Gujarat High Court in CIT V/s Simit P.Sheth (356 ITR 451), Ld. CIT(A) estimated the additions of 12.5% against these purchases. Aggrieved, the revenue is in further appeal before us. 5. Going by the factual matrix as enumerated in the orders of lower authorities, we find that the issue has rightly been clinched in proper perspective by Ld. CIT(A). The Sales Turnover was not in doubt and the assessee w…

ITO Ward 6 (3)(4), Mumbai vs. M/S Krishna Solvechem Ltd, Mumbai

The appeal stands dismissed

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकरअपील िं./ I.T.A. No.6973/Mum/2019 (धििाारण वर्ा / Assessment Year: 2009-10) Ito-6(3)(4) M/S Krishna Solvechem Ltd. बिाम/ R.No.576 M-2, Srinivas Building Aaykar Bhawan, M.K.Road 382/384, Narsi Natha Street Vs. Mumbai – 400 020 Mumbai – 400 009 स्थायीलेखा िं./ जीआइआर िं./ Pan/Gir No. Aaack-7702-J (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Assessee By : Shri Malav Sheth – Ld. Ar Revenue By : Shri Gurbinder Singh-Ld. Dr ुनवाई की तारीख/ : 21/04/2021 Date Of Hearing घोषणा की तारीख / : 03/05/2021 Date Of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal ()

…the remand report, Ld. CIT(A) noted that the purchases of Rs.198.62 Lacs out of purchases of Rs.214.87 Lacs were accepted by Ld. AO. On the balance purchases of Rs.119.07 Lacs, relying upon the decision of Hon’ble Gujarat High Court in CIT V/s Simit P. Sheth (356 ITR 451), Ld. CIT(A) estimated additions of 12.5%. Aggrieved, the revenue is in further appeal before us. It appears that the assessee has accepted the verdict of Ld. CIT(A). 5. Going by the factual matrix as enumerated in the orders of lower authorities, we find that the issue has rightly been clinched in proper perspective by Ld. CIT(A). The Sales Turn…

DCIT Cen Cir 4(2), Mumbai vs. Mitesh Ilesh Gadhia, Mumbai

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

…erators to reduce the profit. It was also considered that there will be savings on account of taxes while procuring material from grey market. The authorities below relied upon decision of Hon'ble Gujarat High Court in the case of CUT v. Simit P. Sheth (2013) 356 ITR 451/219 taxman 85 Mag./38 taxmann.com 385, which has estimated disallowance @12.5% of the disputed bogus purchases to meet the end of justice. The authorities below has not brought on record industry comparables nor any rational comparability vis a vis preceding years GP ratio are brought on record. There is no allegation brought on record by Id. DR…

ITO 28(2)(2), Navi Mumbai vs. M/S Maurya Tiles, Navi Mumbai

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

Bench: Shri Shamim Yahya, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.4502/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2011-12) Ito-28(2)(2) बिधम/ M/S. Maurya Tiles 3Rd Floor, R. No.311 Tower Shop No. 4 & 5 Plot No.575- Vs. No.5 Vashi Rly Station A Vashi Belapur Road Complex Vashi Navi Shirvane Nerul Navi Mumbai-400703. Mumbai-400706. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aahfm6694H (अपीलाथी /Appellant) (प्रत्यथी / Respondent) .. Revenue By: Shri Sanjay Sethi (Dr) Assessee By: None सुनवाई की तारीख / Date Of Hearing: 28/01/2021 घोषणा की तारीख /Date Of Pronouncement: 07/04/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Present Appeal Against The Order Dated 30.04.2019 Passed By The Commissioner Of Income Tax (Appeals) -26, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2011- 12. 2. The Revenue Has Raised The Following Grounds: - "(1) "Whether On The Facts & Circumstances Of The Case An In Law, The Ld. Cit(A) Was Correct In Deleting The Penalty Of Rs. 43,922/- Levied U/S. 271(1)(C) Of The Act As The Penalty Was Levied On Quantum Additions Made On Account Of Bogus

…Manak Alloys P. Ltd. and on the basis of the decision of Hon’ble Mumbai Bench in the case of M/s. Yashraj Films Pvt. Ltd. Vs. ACIT, Central Circle 29, Mumbai and on the basis of the decision of Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth 356 ITR 451. Moreover, the Hon’ble A.Y.2011-12 Gujarat High Court in the case of National Textiles Vs. CIT 2001 164 CTR 2009 (Guj) has held that the penalty is not leviable when the profit was added on estimation basis. Taking into account all the facts and circumstances of the case, we are of the view that the CIT(Appeals) has decided the matter of controve…

Pragaram J Patel, Mumbai vs. ITO 19 (2)(5), Mumbai

The appeal stands dismissed

Bench: Hon’Ble Shri Saktijit Dey, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकरअपील सं./ I.T.A. No.5569/Mum/2019 (धििाारण वर्ा / Assessment Year: 2011-12) Pragaram J. Patel Ito-19(2)(5) 67/26, 2Nd Floor, Kholsawala Bldg. Matru Mandir बिाम/ Dr. M.G. Mahimtura Marg Mumbai – 400 020. Vs. 3Rd Kumbharwada Mumbai - 400 004. स्थायीलेखासं./जीआइआरसं./Pan/Gir No. Aacpp-1462-B (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Assessee By : None Revenue By : Ms. Smita Verma – Ld. Sr. Dr सुनवाई की तारीख/ : 24/03/2021 Date Of Hearing घोषणा की तारीख / 05/04/2021 : Date Of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal () 1. At The Time Of Hearing, None Appeared For Assessee. However, The Material On Record Was Sufficient For Disposal Of The Appeal. The Ld. Dr Pleaded For Dismissal Of The Appeal. The Assessee Is Aggrieved By Confirmation Of Certain Addition On Account Of Alleged Bogus Purchases Vide Order Dated 20/06/2019 As Passed By Ld. Commissioner Of Income- Tax (Appeals)-4, Mumbai, [In Short Referred To As ‘Cit(A)’], Appeal No.Cit(A)-4/Ito-19(2(5)/E-Filing-51/2018-19. Our Adjudication To The Subject Matter Of Appeal Would Be As Given In Succeeding Paragraphs.

…an opinion that the assessee procured bogus bills without actual delivery of goods. Since the sales were not in doubt, the goods must have been procured from grey market. Therefore, following the ratio laid down by Hon’ble Gujarat High Court in Simit P.Sheth 356 ITR 451 and Bholanath Polyfabs Pvt. Ltd. Ltd. 355 ITR 290, Ld. AO estimated an addition of 12.5% against these purchases. 3. The Ld. CIT(A), after considering assessee’s written submissions and factual matrix, upheld the action of Ld. AO. Aggrieved, the assessee is in further appeal before us. 4. Upon perusal of impugned order, we find that Ld. CIT(A) ha…

ITO 28(3)(1), Mumbai vs. Sanjay A Choubey, Mumbai

The appeal stands dismissed

Bench: Hon’Ble Shri Saktijit Dey, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकरअपील सं./ I.T.A. No.4789/Mum/2019 (धििाारण वर्ा / Assessment Year: 2010-11) Ito-28(3)(1), Mumbai Shri Sanjay Choubey Room No.316, 3Rd Floor,6Th Tower, Gharondha Co-Op Hsg. Society बिाम/ Vashi Railway Stn.Complex F-27, Room No.04 Vs. Vashi, Navi Mumbai – 400 703. Sector -9, Ghansoli Navi Mumbai-400 701. स्थायीलेखासं./जीआइआरसं./Pan/Gir No. Afkpc-2939-K (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Assessee By : None Revenue By : Ms. Smita Verma – Ld. Sr. Dr सुनवाई की तारीख/ : 23/03/2021 Date Of Hearing घोषणा की तारीख / : 05/04/2021 Date Of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal ()

…ed u/s 133(6) did not elicit any satisfactory response. Consequently, these purchases were disallowed and added back to assessee’s income. 4. Upon further appeal, Ld. CIT(A), inter-alia, relying upon the decision of Hon’ble Gujarat High Court in Simit P.Sheth 356 ITR 451 restricted the additions to the extent of 12.5% of these purchases. Aggrieved, the revenue is in further appeal before us. 5. Going by the factual matrix as enumerated in the orders of lower authorities, we find that the issue has rightly been clinched in proper perspective by Ld. CIT(A). The Sales Turnover was not in doubt and the assessee was i…

Mr. Ramesh Dhawalchand Jain, Mumbai vs. ITO 19(3)(1), Mumbai

Appeals stands dismissed

Bench: Hon’Ble Shri Saktijit Dey, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकरअपील सं./ I.T.A. No.5665/Mum/2018 (धििाारण वर्ा / Assessment Year: 2009-10) Ito-19(3)(1) Shri Ramesh Dhawalchand Jain बिाम/ 89,2Nd Pathan Street Matru Mandir 2Nd Floor, Room No.202 5Th Kumbharwada Vs. Tardeo Road, Mumbai – 400 007. Mumbai – 400 004. स्थायीलेखासं./जीआइआरसं./Pan/Gir No.Abvpj-7944-C (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : & आयकरअपील सं./ I.T.A. No.4512/Mum/2019 (धििाारण वर्ा / Assessment Year: 2009-10) Shri Ramesh Dhawalchand Jain Ito-19(3)(1) 89,2Nd Pathan Street बिाम/ Matru Mandir, 2Nd Floor 5Th Kumbharwada Room No.202,Tardeo Road Vs. Mumbai – 400 004. Mumbai – 400 007. स्थायीलेखासं./जीआइआरसं./Pan/Gir No.Abvpj-7944-C (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Assessee By : Shri Rajiv Khandelwal-Ld. Sr. Ar Revenue By : Ms. Smita Verma – Ld. Sr. Dr सुनवाई की तारीख/ : 22/03/2021 Date Of Hearing घोषणा की तारीख / : 05/04/2021 Date Of Pronouncement आदेश / O R D E R Per Manoj Kumar Aggarwal ()

…T(A), after considering assessee’s submissions and factual matrix, opined that the assessee miserably failed to lead evidence. Going by the ratio of decision of Hon’ble Gujarat High Court in Bholanath Polyfabs Pvt. Ltd. (355 ITR 290) as well as Simit P.Sheth (356 ITR 451), Ld. CIT(A) estimated additions of 12.5% against these purchases. The said adjudication has given rise to cross-appeals before us. 6. Upon careful consideration of factual matrix, we find that the assessee was engaged in trading activity and there could be no sale without actual purchase of goods. The assessee submitted adequate documentary evi…

ITO -19(3)(1), Mumbai vs. Ramesh Dhawalchand Jain, Mumbai

Appeals stands dismissed

Bench: Hon’Ble Shri Saktijit Dey, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकरअपील सं./ I.T.A. No.5665/Mum/2018 (धििाारण वर्ा / Assessment Year: 2009-10) Ito-19(3)(1) Shri Ramesh Dhawalchand Jain बिाम/ 89,2Nd Pathan Street Matru Mandir 2Nd Floor, Room No.202 5Th Kumbharwada Vs. Tardeo Road, Mumbai – 400 007. Mumbai – 400 004. स्थायीलेखासं./जीआइआरसं./Pan/Gir No.Abvpj-7944-C (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : & आयकरअपील सं./ I.T.A. No.4512/Mum/2019 (धििाारण वर्ा / Assessment Year: 2009-10) Shri Ramesh Dhawalchand Jain Ito-19(3)(1) 89,2Nd Pathan Street बिाम/ Matru Mandir, 2Nd Floor 5Th Kumbharwada Room No.202,Tardeo Road Vs. Mumbai – 400 004. Mumbai – 400 007. स्थायीलेखासं./जीआइआरसं./Pan/Gir No.Abvpj-7944-C (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Assessee By : Shri Rajiv Khandelwal-Ld. Sr. Ar Revenue By : Ms. Smita Verma – Ld. Sr. Dr सुनवाई की तारीख/ : 22/03/2021 Date Of Hearing घोषणा की तारीख / : 05/04/2021 Date Of Pronouncement आदेश / O R D E R Per Manoj Kumar Aggarwal ()

…T(A), after considering assessee’s submissions and factual matrix, opined that the assessee miserably failed to lead evidence. Going by the ratio of decision of Hon’ble Gujarat High Court in Bholanath Polyfabs Pvt. Ltd. (355 ITR 290) as well as Simit P.Sheth (356 ITR 451), Ld. CIT(A) estimated additions of 12.5% against these purchases. The said adjudication has given rise to cross-appeals before us. 6. Upon careful consideration of factual matrix, we find that the assessee was engaged in trading activity and there could be no sale without actual purchase of goods. The assessee submitted adequate documentary evi…

Kamal Haren Shah, Mumbai vs. ITO WD. 18(2)(1), Mumbai

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

Bench: Shri Vikas Awasthyआअसं. 3847/मुं/2019 ("न.व.2010-11.) आअसं. 3848/मुं/2019 ("न.व.2011-12) Shri Kamal H. Shah, Room No.8, 5Th Floor, 133, Gopal Niwas, Princes Street, Marine Lines, Mumbai 400 002 Pan: Aahps 2365M ...... अपीलाथ" /Appellant बनाम Vs. Ito-18(2)(1), Earnest House, Nariman Point, Mumbai 400 021 ..... ""तवाद"/Respondent

…both the appeals by the assessee. The ld. Departmental Representative submitted that the Assessing Officer has made addition in respect of bogus purchases by placing reliance on the decision of Hon'ble Gujarat High Court in the case of CIT vs. Simit P. Sheth, 356 ITR 451. The addition sustained by the CIT(A) is fair and reasonable therefore should be upheld. 6. The submission made by ld. Departmental Representative heard, written submissions filed by the assessee and orders of authorities below examined. Undisputedly, the assessee has failed to prove genuineness of purchases and the authenticity of the dealers i…

Kamal Haren Shah, Mumbai vs. ITO WD. 18(2)(1), Mumbai

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

Bench: Shri Vikas Awasthyआअसं. 3847/मुं/2019 ("न.व.2010-11.) आअसं. 3848/मुं/2019 ("न.व.2011-12) Shri Kamal H. Shah, Room No.8, 5Th Floor, 133, Gopal Niwas, Princes Street, Marine Lines, Mumbai 400 002 Pan: Aahps 2365M ...... अपीलाथ" /Appellant बनाम Vs. Ito-18(2)(1), Earnest House, Nariman Point, Mumbai 400 021 ..... ""तवाद"/Respondent

…both the appeals by the assessee. The ld. Departmental Representative submitted that the Assessing Officer has made addition in respect of bogus purchases by placing reliance on the decision of Hon'ble Gujarat High Court in the case of CIT vs. Simit P. Sheth, 356 ITR 451. The addition sustained by the CIT(A) is fair and reasonable therefore should be upheld. 6. The submission made by ld. Departmental Representative heard, written submissions filed by the assessee and orders of authorities below examined. Undisputedly, the assessee has failed to prove genuineness of purchases and the authenticity of the dealers i…

DCIT 12(2)(1), Mumbai vs. D R Coats Ink and Resins P.Ltd, Mumbai

In the result, appeal filed by the revenue is hereby dismissed and cross-objection filed by the assessee is also hereby dismissed

Bench: Shri Rajesh Kumar, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.4858/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2011-12) बिधम/ M/S. D. R. Coats Ink & Dcit 12(2)(1) Room No. 223, 2Nd Floor, Resins Pvt. Ltd. Vs. 230 New Sonal Link Aayakar Bhavan, M. K. Industrial, Building No.2, Road, Mumbai-400020. Estate Link Road, Malad (W), Mumbai-400064. Co. No.240/Mum/2018 (Arising Out Of Ita. No. 4858/Mum/2017) (निर्धारण वर्ा / Assessment Year: 2011-12) M/S. D. R. Coats Ink & बिधम/ Dcit 12(2)(1) Resins Pvt. Ltd. Room No. 223, 2Nd Floor, Vs. 230 New Sonal Link Aayakar Bhavan, M. K. Industrial, Building No.2, Road, Mumbai-400020. Estate Link Road, Malad (W), Mumbai-400064 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabcd8645A (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri Bharat Andhale (Sr. Ar) Assessee By: Shri M. Subramaniam सुनवाई की तारीख / Date Of Hearing: 06/01/2021 घोषणा की तारीख /Date Of Pronouncement: 01/04/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue As Well As Assessee Have Filed The Above Mentioned Appeal As Well As Cross Objection Against The Order Dated 28.04.2017 Passed

…inding, we find that the CIT(A) has decided the matter of controversy on the basis of the decision in ITA. No.4858/M/17 CO. No. 240/M/2018 A.Y. 2011-12 the case of (i) CIT Vs. Bholanath Poly Fab Ltd. (2013) 355 ITR 290 (Guj) (ii) CIT Vs. Simit P. Sheth (2013) 356 ITR 451 (Guj) (iii) CIT Vs. Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) (iv) ITO Vs. Permanand (2007) 107 TTJ 395 (Jd) (Trib) (v) Shri Madhukant B. Gandhi Vs. ITO ITA. No. 1950/M/2009 Bench „B‟ Dated 23.02.2010 (AY 2005-06) & (vi) Sanjeev Woolen Mills Vs. CIT (2005) 279 ITR 434 (SC). The CIT(A) has considered the Gross Profit (G.P) ratio of the b…

Rameshkumar Tagrajji Jain, Mumbai vs. ITO, Ward - 19(3)(1), Mumbai

In the result, appeal by the assessee is partly allowed in the terms aforesaid

Bench: Vikas Awasthyआअसं. 2949/मुं/2019 ("न.व. 2009-10) Rameshkumar Tagrajji Jain 96/100, Maruti Mandir Marg 5Th Kumbharwada Lane Mumbai 400 004 Pan: Aagpj9261Q ...... अपीलाथ"/Appellant

…tative submitted that the assessee failed to discharge his owns in proving genuineness of purchases and the dealers. The Assessing officer after considering the facts of case and the judgement of Hon’ble Gujarat High Court in the case of CIT vs. Simit P Sheth 356 ITR 451 restricted the addition to 12.5%. The estimation of GP by the Assessing officer and the CIT(A) at12.5% is fair and reasonable. 5. Both sides heard, orders of authorities below examined. The assessee is a trader in ferrous and non-ferrous metals. Undisputedly, the assessee has failed to substantiate genuineness of the purchases, as well as the de…

DCIT 27(2), Navi Mumbai vs. Poonam Enterprises, Mumbai

In the result, appeal of the assessee is dismissed and appeal of the Revenue is dismissed

…he entire purchases cannot be held to be bogus in the instant case. Since, the sales made out of corresponding purchases has not been disputed by the ld. AO by placing reliance on the decision of the Gujarat High Court in the case of Simit P Sheth reported in 356 ITR 451, he resorted to estimate the profit element embedded in such purchases @25% and gave partial relief to the assessee. 4. Aggrieved by this order, the assessee is in appeal before us for deletion of 25% addition confirmed by the ld. CIT(A) and the Revenue is in appeal for deletion of 75% of the addition by the ld. CIT(A). 5. At the outset, we fin…

ITO 32 (1)(5), Mumbai vs. Empee Engineering Corporation, Mumbai

In the result, appeals of the revenue are dismissed

Bench: Shri C.N. Prasad, Hon'Ble & Shri M. Balaganesh, Hon'Ble

…Corporation 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)(5), Mumbai vs. Empee Engineering Corporation, Mumbai

In the result, appeals of the revenue are dismissed

Bench: Shri C.N. Prasad, Hon'Ble & Shri M. Balaganesh, Hon'Ble

…Corporation 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…

Nelco Steel (Prop Nemichand Kaluchanji Shah), Mumbai vs. ITO, -19(2)(4), Mumbai

In the result, the appeal is partly allowed

Bench: Shri Vikas Awasthy () & Shri N.K. Pradhan () Assessment Year: 2009-10

…o Steel 4 Therefore, considering the above facts, the AO held that an addition of account of a higher margin of profit would be fair and equitable. Therefore, following the judgment of the Hon’ble Gujarat High Court in the case of CIT v. Simit P. Sheth (2013) 356 ITR 451, the AO estimated the profit @ 12.5% on the disputed purchases of Rs.1,03,66,459/- and accordingly made an addition of Rs.12,95,807/-. 4. Aggrieved by the order of the AO, the assessee filed an appeal before the Ld. CIT(A). We find that vide order dated 30.04.2019, the Ld. CIT(A) held that : “5.7 From the aforesaid cited decision of Gujarat Hig…

Me Infraprojects P. Ltd., Mumbai vs. DCIT 10(2)(2), Mumbai

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

Bench: Shri Mahavir Singh & Shri S. Rifaur Rahmanme Infraprojects P. Ltd. Dcit-10(2)(2) 404, Man Excellenza, Mumbai Opp. Pawan Hans, S. V. Road, Vs. Vile Parle (E), Mumbai-400 056 Pan/Gir No. Aafcm 5012 N (Appellant) : (Respondent) Appellant By : Shri Rahul Hakani Respondent By : Shri Vidhyadhar V Date Of Hearing : 18.03.2021 Date Of Pronouncement : 18.03.2021 O R D E R Per Mahavir Singh, Vp: This Appeal By The Assessee Is Arising Out Of The Order Of The Commissioner Of Income Tax (Appeals)-17, Mumbai (‘Cit(A)’ For Short) In Appeal No. Cit(A)-17/It- 521/10005/18-19 Vide Order Dated 14.05.2019. The Assessment Was Framed By The Dcit, Circle-10(2)(2), Mumbai U/S. 143(3) R.W.S 147 Of The Income Tax Act, 1961 (‘The Act’ Hereinafter) For The Assessment Year (A.Y.) 2009-10 Vide His Order Dated 16.02.2015. 2. The Only Issue In This Appeal Of The Assessee Is Against The Order Of The Ld. Cit(A) Confirming The Levy Of Penalty U/S.271(1)(C) Of The Act On Account Of Bogus Purchases From Suspicious Dealers. For This, The Assessee Has Raised The Following Ground No.1:

…irmity with the books of accounts in terms of the purchase or utilization of the materials in different contracts in which the appellant was engaged. Therefore, the ratio laid down by the Gujarat High Court in the case of CIT vs. CIT vs. Simit P. Sheth (2013) 356 ITR 451(Guj) that when the total sales and purchases has been accepted by the A.O. then it would be reasonable to estimate the profit made on such purchases and that profit has to be added to the income, ought to be applied to the case of the Appellant.’ Considering the facts and circumstances of case in totality, the element of profit out of such unprov…

Shri Rajendra Narsinghmal Sanghvi HUF, Mumbai vs. Income Tax Officer 19(3)(1), Mumbia

In the result, appeal by assessee is partly allowed in the terms aforesaid

Bench: Vikas Awasthy & Shri N.K.Pradhanआअसं. 5406/मुं/2019 ("न.व. 2011-12) Shri Rajendra Narsinghmal Sanghvi Huf, Room No.5, 144/46, Purshottam Mullji Bldg., Dr.M.G.Mahimtura Marg, Mumbai 400 004. Pan: Aajhr9849D ...... अपीलाथ" /Appellant बनाम Vs. Income Tax Officer -19(3)91), Matru Mandir, Nana Chowk, Mumbai 400 007 ..... ""तवाद"/Respondent Assessee By : None Revenue By : Ms. Smita Verma सुनवाई क" "त"थ/ Date Of Hearing : 11/03/2021 घोषणा क" "त"थ/ Date Of Pronouncement : 16/03/2021 आदेश/ Order

…k unserved with postal remarks ‘not known’. The ld.Departmental Representative contended that the Assessing Officer and the CIT(A) have made reasonable estimation of G.P at 12.5% following the order of Hon'ble Gujarat High Court in the case of Simit P. Sheth, 356 ITR 451. 4. We have heard the submissions made by ld.Departmental Representative and have examined the orders of authorities below. Undisputedly, the assessee hasfailed to prove authenticity of the transactions with declared hawala operators. No documents were furnished by the assessee to substantiate that the goods were in fact delivered to the assessee…