CIT v. Simit P. Sheth

Income Tax Officer-15(2)(4), Mumbai vs. M/S. Precise Conchem Pvt. Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

…n with the purchase and sales could not be established. Therefore, the AO made addition of the entire bogus purchases. The assessee filed appeal against the said addition. The CIT(A) following the decision rendered in the case of CIT Vs. Simit P. Sheth (2013) 356 ITR 451 (Guj), restricted the addition to 12.5% of the bogus purchases. The learned Departmental Representative submitted that the decision in Simit P. Sheth (supra) is in respect of trading of goods and in the present case, the assessee is a manufacturer, therefore, the ratio laid down in the said decision would not apply in the facts of the present cas…

Hiren Chandrakant Parekh, Mumbai vs. Income Tax Officer-32(1)(5), Mumbai

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

Bench: Vikas Awasthy & Shri N.K.Pradhanआअसं. 5389/मुं/2019 ("न.व. 2009-10) Hiren Chandrakant Parekh, 402, Narmada Apartment, Shimpoli Road, Haridas Nagar, Borivali West, Mumbai 400 092 Pan: Afxpp8325D ...... अपीलाथ" /Appellant बनाम Vs. Income Tax Officer -32(1)(5) C-11, Room No.203, 2Nd Floor, Pratyakshakar Bhavan,Bandra Kurla Complex,, Mumbai 400 051 ..... ""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

…आयकर अपील"य अ"धकरण मुंबई पीठ “एस एम सी”, मुंबई IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC”, MUMBAI "ी "वकास अव"थी, "या"यक सद"य एवं "ी नबीन कुमार "धान, लेखा सद"य के सम" BEFORE VIKAS AWASTHY, JUDICIAL MEMBER & SHRI N.K.PRADHAN, ACCOUNTANT MEMBER आअसं. 5389/मुं/2019 ("न.व. 2009-10) Hiren Chandrakant Parekh, 402, Narmada Apartment, Shimpoli Road, Haridas Nagar, Borivali West, Mumbai 400 092 PAN: AFXPP8325D ...... अपीलाथ" /Appellant बनाम Vs. Income Tax Officer -32(1)(5) C-11, Room No.203, 2nd Floor, Pratyakshakar Bhavan,Bandra Kurla Complex,, Mumbai 400 051 ..... ""तवाद"/Respondent Assessee by : None Re…

Income Tax Officer-20(1)(5), Mumbai vs. Habibullah M. H. Mullajiwala(Prop.M/S.Lucky Supply Agency), Mumbai

In the result, both the appeals filed by the revenue are hereby dismissed

Bench: Shri Amarjit Singh, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं/ I.T.A. Nos.5373 & 5374/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2011-12) Income Tax Officer 20(1)(5) बिधम/ Shri Habibullah M. H. Room No.121, 1St Floor, Mullajiwala (Prop. M/S. Vs. Piramal Chambers, Parel, Lucky Supply Agency) Mumbai-400012. Shop No. 8, Yusuf Manzil, 2, Sofia Zuber Road, Opp. Nagpada Police Station, Mumbai-400008. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Afdpm7661R (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri Gurbinder Singh (Dr) Assessee By: None सुनवाई की तारीख / Date Of Hearing: 21/12/2020 घोषणा की तारीख /Date Of Pronouncement: 16/03/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Above Mentioned Appeals Against The Different Order Passed By The Commissioner Of Income Tax (Appeals) -32, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2011- 12. Ita. No.5374/Mum/2017 2. The Revenue Has Filed The Present Appeal Against The Order Dated 15.05.2017 Passed By The Commissioner Of Income Tax (Appeals) -32

…uires as to whether the payments made by the assessee had been actually received by the apparent sellers. Hence the estimate made by the appellate authorities did not warrant interference. 5.6 Again in the case of Commissioner of Income-tax v. Simit P. Sheth 356 ITR 451 (Guj) the Hon’ble court finding that estimation of rate of profit return must necessarily vary with the A.Y.2011-12 nature of business and no uniform yardstick could he adopted and finally confirmed the action of the ITAT in determining 12.5% of the bogus purchases as the profit embedded in such transaction. The head note is as under: Held, dism…

Ramesh H. Bhansali, Mumbai vs. ITO 19(3)(1)

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.2353/Mum/2017 (िनधा"रण वष" / Assessment Year: 2009-10) Shri Ramesh H. Bhansali Ito-19(3)(1) बनाम/ Matru Mandir, 2Nd Floor 105, Mukund Mansion V.P. Road, New C.P. Tank Circle Opp. Bhatia Hospital Vs. Mumbai – 400 004. Mumbai – 400 007. "थायीलेखासं./जीआइआरसं./Pan/Gir No.Aekpb-5882-K (अपीलाथ"/Appellant) (""थ" / Respondent) : Assessee By : Shri Vimal Sethiya, Ld. Ar Revenue By : Ms. Smita Verma – Ld. Sr. Dr सुनवाई की तारीख/ : 16/03/2021 Date Of Hearing घोषणा की तारीख / : 16/03/2021 Date Of Pronouncement आदेश / O R D E R

…chases. 2.2 Though the assessee filed certain documentary evidences, however, notices issued u/s. 133(6) did not elicit satisfactory response. After considering factual matrix, Ld. AO applying the ratio of Hon'ble Gujarat High Court in CIT vs. Simit P. Sheth [356 ITR 451], estimated additions against these purchases @12.5%. 3. The Ld. CIT(A), keeping in view the lower rate of VAT on metals, directed Ld. AO to restrict the addition to the extent of 6.5%. Still aggrieved, the assessee is in further appeal before us. 4. After going through factual matrix, we find that it was a fit case to make estimated additions in…

Asst CIT Circle-11 (2)(1), Mumbai vs. M/S Shriji Kraft Decorators Pvt Ltd., Mumbai

In the result, appeals of the Revenue are dismissed

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

…ect of the matter elaborately with reference to the submissions of the assessee and the averments in the Assessment Order along with various judicial pronouncements including 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) for the A.Y. 2009-10 observed as under: - “5.3.27 In the present case, the Assessing Officer has shown that the party in question was non-existent. The appellant has not been able to disprove the findings of the Assessing Officer regarding the non-…

Asst CIT Circle-11 (2)(1), Mumbai vs. M/S Shriji Kraft Decorators Pvt Ltd., Mumbai

In the result, appeals of the Revenue are dismissed

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

…ect of the matter elaborately with reference to the submissions of the assessee and the averments in the Assessment Order along with various judicial pronouncements including 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) for the A.Y. 2009-10 observed as under: - “5.3.27 In the present case, the Assessing Officer has shown that the party in question was non-existent. The appellant has not been able to disprove the findings of the Assessing Officer regarding the non-…

Asst CIT Circle-11 (2)(1), Mumbai vs. M/S Shriji Kraft Decorators Pvt Ltd., Mumbai

In the result, appeals of the Revenue are dismissed

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

…ect of the matter elaborately with reference to the submissions of the assessee and the averments in the Assessment Order along with various judicial pronouncements including 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) for the A.Y. 2009-10 observed as under: - “5.3.27 In the present case, the Assessing Officer has shown that the party in question was non-existent. The appellant has not been able to disprove the findings of the Assessing Officer regarding the non-…

Income Tax Officer-22 (1)(1), Mumbai vs. Anitha Art Printers, Mumbai

Bench: Shri C. N. Prasad, Jm & Shri S. Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No. 5666/Mum/2019 (निर्धारणवर्ा / Assessment Year: 2011-12)

…e raised grounds of appeal mainly on the purchases not being genuine. Ld. CIT(A) has considered the corresponding onward sales and came to the decision. By respectfully following the decision of Hon’ble Gujrat High Court in the case of CIT vrs. Smith P. Sheth 356 ITR 451 (Guj), we are inclined to agree with the findings of Ld. CIT(A). Therefore, grounds raised by the revenue are dismissed. 5 I.T.A. No. 5666/Mum/2019 Anitha Art Printers 7. In the net result, the appeal filed by the revenue stands dismissed. Orders pronounced in the open court on 15/03/2021. (C. N. Prasad) (S. Rifaur Rahman) न्याययकसदस्य / Judicia…

Income Tax Officer-32(2)(1), Mumbai vs. Shri Inamulhaque Hayatullah Khan, Mumbai

In the result, appeal by the Revenue is dismissed

Bench: Vikas Awasthy & Shri N.K.Pradhanआअसं. 5374/मुं/2019 ("न.व. 2009-10) I.T.O-31(2)(1), 615, Kautilya Bhavan, Bandra Kurla Complex, Bandra(E), Mumbai 400 051 ...... अपीलाथ" /Appellant बनाम Vs. Inamulhaque Hayatullah Khan, Prop.M/S. Maaz Steel, Shop No.4, Oshiwara Bridge, Sv Road, Goregaon (W), Mumbai 400102 Pan: Aoipk6693R ..... ""तवाद"/Respondent

…आयकर अपील"य अ"धकरण मुंबई पीठ “एस एम सी”, मुंबई IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC”, MUMBAI "ी "वकास अव"थी, "या"यक सद"य एवं "ी नबीन कुमार "धान, लेखा सद"य के सम" BEFORE VIKAS AWASTHY, JUDICIAL MEMBER & SHRI N.K.PRADHAN, ACCOUNTANT MEMBER आअसं. 5374/मुं/2019 ("न.व. 2009-10) I.T.O-31(2)(1), 615, Kautilya Bhavan, Bandra Kurla Complex, Bandra(E), Mumbai 400 051 ...... अपीलाथ" /Appellant बनाम Vs. Inamulhaque Hayatullah Khan, Prop.M/s. Maaz Steel, Shop No.4, Oshiwara Bridge, SV Road, Goregaon (W), Mumbai 400102 PAN: AOIPK6693R ..... ""तवाद"/Respondent Assessee by : Ms. Priyanka Jain Revenue by : Shr…

Sunraj Diamond Exports Ltd, Mumbai vs. ACIT Range 5(3)(2), Mumbai

In the result, appeals filed by the Revenue as well as the assessee stands dismissed

Bench: Sri Shamim Yahya, Am & Sri Ram Lal Negi, Jm

…ged bills worth Rs. 5,51,11,159/- from the aforesaid two hawala parties as reported hereinabove to suppress its true profits. 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.)], I hereby estimate the G.P. percentage at 12.5%, being the possible profit out of the purchases made through non-genuine parties known as tainted purchases and therefore, I hereby make an addition of Rs.68,88,895/- [12.5% of Rs. 5,51,11,159/-]. Further, on the similar issue in assessee own case in the previous year i.e A.Y. 2008-09, 2011-…

Nish Developers Pvt. Ltd., Mumbai vs. DCIT- CC- 6(3), Mumbai

In the result, all the appeals of the assessee except ITA

Bench: Shri Rajesh Kumar & Shri Ram Lal Negi

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “B”, MUMBAI BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER ITA No.3490, 3523, 2514, 3524 & 3525/M/2018 Assessment Years: 2011-12, 2012-13, 2013-14, 2014-15 & 2015-16 Jt. CIT (OSD) M/s. Nish Developers, CC-6(3), 101-B, B-wing, R. No.1926, Mittal Court, Vs. 19th Floor, Nariman Point, Air India Building, Mumbai -400 021 Nariman Point, PAN: AACCN1457H Mumbai - 400021 (Appellant) (Respondent) ITA Nos.3131, 3129, 3130, 2440, 3103 & 3127/M/2018 Assessment Years: 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2015-16 M/s. Nish Deve…

Nish Developers Pvt. Ltd., Mumbai vs. DCIT - CC -6(3), Mumbai

In the result, all the appeals of the assessee except ITA

Bench: Shri Rajesh Kumar & Shri Ram Lal Negi

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “B”, MUMBAI BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER ITA No.3490, 3523, 2514, 3524 & 3525/M/2018 Assessment Years: 2011-12, 2012-13, 2013-14, 2014-15 & 2015-16 Jt. CIT (OSD) M/s. Nish Developers, CC-6(3), 101-B, B-wing, R. No.1926, Mittal Court, Vs. 19th Floor, Nariman Point, Air India Building, Mumbai -400 021 Nariman Point, PAN: AACCN1457H Mumbai - 400021 (Appellant) (Respondent) ITA Nos.3131, 3129, 3130, 2440, 3103 & 3127/M/2018 Assessment Years: 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2015-16 M/s. Nish Deve…

Income Tax Officer 19(2)(4), Mumbai vs. Mr. Narendra Chowdhary, Mumbia

In the result, appeal by Revenue is dismissed

Bench: Vikas Awasthy & Shri N.K.Pradhanआअसं. 5267/मुं/2019 ("न.व. 2011-12) Income Tax Officer -19(2)(4), Room No.217, 2Nd Floor, Matru Mandir, Tardeo, Mumbai 400 007. ...... अपीलाथ" /Appellant

…essing Officer held that the purchases are bogus and made addition of Rs.11,96,250/- by estimating G.P @ 12.5% of the total bogus purchases. The Assessing Officer made aforesaid addition in accordance with the decision rendered in the case of Simith P. Sheth, 356 ITR 451(Guj). In first appeal, the CIT(A) reduced the G.P declared by the assessee (5.05%) from the estimated addition of 12.5% made by Assessing Officer. Thus, the effective rate of addition sustained by CIT(A) was 7.45% 3. We have heard the submissions made by ld.Departmental Representative and have examined the orders of authorities below. The assess…

Income Tax Officer, 12(1)(2), Mumbai vs. M/S. Autonum Controls Private Limited, Mumbai

In the result, appeal of the revenue is dismissed

Bench: Shri C.N. Prasad, 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…

ITO Ward 1, Palghar vs. Shri. Atul Kumar D Shah, Palghar

In the result, appeal of the revenue is dismissed

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

…ing Officer did 4 ITA.NO. 5553/MUM/2019 (A.Y: 2009-10) Shri Atul Kumar D. Shah 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-20(2)(1), Mumbai vs. Mukesh Tikamchand Jain, Mumbai

In the result, appeal by the Revenue is dismissed

Bench: Vikas Awasthy & Shri N.K.Pradhanआअसं. 5213/मुं/2019 ("न.व. 2009-10) Ito -20(2)(1), Room No.216, 2Nd Floor, Piramal Chambers, Lalbaug, Mumbai 400 012 ...... अपीलाथ" /Appellant बनाम Vs. Mukesh Tikamchand Jain, B/802, Pratiksha Tower, R.B. Nimkar Marg, Mumbai Central, Mumbai 400 008 Pan:Aaipj0037E ..... ""तवाद"/Respondent

…has obtained bogus purchase entries aggregating to Rs.82,73,833/- from two hawala operators. Since, the assessee failed to substantiate genuineness of the purchases and the suppliers, the Assessing Officer following the decision in the case of Simit P. Sheth, 356 ITR 451(Guj) made an estimated addition of 12.5% of total bogus purchases. Aggrieved by the assessment order dated 30/03/2015, the assessee filed appeal before the CIT(A). The CIT(A) after considering the submissions of the assessee and the G.P declared by assessee, modified the assessment order and restricted the addition to 5% of the bogus purchases. A…

ITO-20 (2)(1), Mumbai vs. Jayantilal Parasmal Bhansali, Mumbai

In the result, appeal by the Revenue is dismissed

Bench: Vikas Awasthy & Shri N.K.Pradhanआअसं. 5212/मुं/2019 ("न.व. 2009-10) Ito -20(2)(1), Room No.216, 2Nd Floor, Piramal Chambers, Lalbaug, Mumbai 400 012 ...... अपीलाथ" /Appellant बनाम Vs. Jayantilal Parasmal Bhansali, Prop. Metro Steel Corporation, 7A/16, 4Th Floor, Navjivan Society, Lamington Road, Mumbai 400 008 Pan:Ablpb3632P ..... ""तवाद"/Respondent

…ned bogus purchase entries aggregating to Rs.82,50,923/- from various (11) hawala operators. Since, the assessee failed to substantiate genuineness of the purchases and the suppliers, the Assessing Officer following the decision in the case of Simit P. Sheth, 356 ITR 451(Guj) made an estimated addition of 12.5% of total bogus purchases. Aggrieved by the assessment order dated 27/03/2015, the assessee filed appeal before the CIT(A). The CIT(A) after considering the submissions of the assessee and the G.P declared by assessee, modified the assessment order by allowing the credit of G.P already declared by the asses…

M/S. Nobel Impex, Mumbai vs. ITO-19(2)(4), Mumbai

In the result, the appeals are partly allowed

Bench: Shri Vikas Awasthy () & Shri N.K. Pradhan () Assessment Year: 2010-11 & Assessment Year: 2011-12

…of weighbridge, excise gate pass, goods inward register. Further observing that only the profit embedded in such disputed purchases be brought to tax, the AO relying on the judgment of the Hon’ble Gujarat High Court in the case of CIT v. Simit P. Sheth (2013) 356 ITR 451 (Guj) estimated the profit @ 12.5% of the disputed purchases of Rs.47,36,452/- which comes to Rs.5,92,057/-. 4. Aggrieved by the order of the AO, the assessee filed an appeal before the Ld. CIT(A). We find that vide order dated 29.05.2019, the Ld. CIT(A) confirmed the disallowance of Rs.5,92,057/- made by the AO by observing that : “5.3.8 The f…

Income Tax Officer-25(1)(1), Mumbai vs. M/S. Samrat Exports, Mumbai

In the result, appeal of the revenue is dismissed

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

…IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT) “E” BENCH, MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER ITA.NO. 5033/MUM/2019 (A.Y: 2007-08) Income Tax Officer – 25(1)(1) v. M/s. Samrat Exports Room No. 203, 2nd Floor P No. -17, Unit-13 Kautilya Bhavan, Bandra Kurla Complex Marol Co-operative Indl. Estate Bandra (E), Mumbai -400051 M.V Road, Marol, Andheri(E) Mumbai 400059 PAN: AAKFS8406J (Appellant) (Respondent) Assessee by : None Department by : Shri Vijay Kumar Menon Date of Hearing : 16.02.2021 Date of Pronouncement : 05.03.2021 O R D E R…

Income Tax Officer, Ward-3(3), Thane vs. M/S. Shr Industries, Thane

In the result, appeals of the revenue are dismissed

Bench: Shri C.N. Prasad, 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…