CIT v. Simit P. Sheth

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…

ITO 12 (1)(2), Mumbai vs. Selvaraj Anthony Muthu Chettiar, 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. 4642/MUM/2019 (A.Y: 2009-10) Income Tax Officer – 12(1)(2) v. Selvaraj Anthony Muthu Chettiar Gala No. 2058, 2nd Floor Room No. 146A, 1st Floor Nirman Ind. Estate Aayakar Bhavan, M.K. Road Mumbai – 400 020 Village Chincholi Link Road Malad(W), Mumbai – 400 064 PAN: AABPA2776L (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 PER…

ITO, Ward-20(3)(2), Mumbai vs. Mr. Sadiq Mohammed Hussain Dadan, Mumbai

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…

ITO, Ward-20(3)(2), Mumbai vs. Mr. Sadiq Mohammed Hussain Dadan, Mumbai

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…

M/S Rolex Steel & Engg Co, Mumbai vs. ITO 19 (3)(1), Mumbai

In the result, the appeal is partly allowed

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

…file transport receipts, octroi receipts, receipts from weighbridge, excise gate pass, goods inward register. Therefore, considering the facts and 4 M/s Rolex Steel & Engg circumstances of the case and relying on the decision in CIT v. Simit P. Sheth (2013) 356 ITR 451 (Guj) and M/s Bholenath Poly Fab P. Ltd. 355 ITR 290 (Guj), estimated the profit @ 12.5% on the disputed purchases of Rs.46,92,697/- which comes to Rs.5,86,587/-. 4. Aggrieved by the order of the AO, the assessee filed an appeal before the Ld. CIT(A). We find that vide order dated 24.06.2019, the Ld. CIT(A) has passed an ex-parte order on the ba…

Keshav Steel India, Mumbai vs. ITO 19(2)(2), Mumbai

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

Bench: Shri Vikas Awasthyआअसं. 4071 /मुं/2019 ("न.व.2011-12) आअसं. 4072 /मुं/2019 ("न.व.2010-11) आअसं. 4073 /मुं/2019 ("न.व.2009-10) M/S.Keshav Steel India, Prop.Kishanlal M. Jayalwal, 115/117, Dr.M.G.Mahimtura Marg, 3Rd Kumbharwada Lane, Mumbai 400 004 : अपीलाथ"/ Appellant Pan: Aaepj 9769R बनाम/ Vs. Ito- 19(2))(2), Matru Mandir Tardeo Road, Mumbai 400 007 : ""थ"/ Respondent

…eceipt, inward register, stock register, etc. No confirmations from the hawala dealers were filed either. The Assessing Officer relying on the decision of Hon'ble Gujarat High Court in the case of CIT 3 ITA NO. 4072/MUM/2019 (A.Y.2010-11) vs. Simit P. Sheth 356 ITR 451 disallowed non-genuine purchases by estimating profit @ 12.5% on total such purchases and made addition of Rs.9,79,976/-. 4. Aggrieved by the assessment order dated 21/01/2016 passed under section 143(3) r.w.s. 147 of the Act, the assessee filed appeal before the CIT(A) assailing the addition. The CIT(A) rejected the contentions of the assessee…

M/S Keshav Steel India, Mumbai vs. ITO 19(2)(2), Mumbai

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

Bench: Shri Vikas Awasthyआअसं. 4071 /मुं/2019 ("न.व.2011-12) आअसं. 4072 /मुं/2019 ("न.व.2010-11) आअसं. 4073 /मुं/2019 ("न.व.2009-10) M/S.Keshav Steel India, Prop.Kishanlal M. Jayalwal, 115/117, Dr.M.G.Mahimtura Marg, 3Rd Kumbharwada Lane, Mumbai 400 004 : अपीलाथ"/ Appellant Pan: Aaepj 9769R बनाम/ Vs. Ito- 19(2))(2), Matru Mandir Tardeo Road, Mumbai 400 007 : ""थ"/ Respondent

…eceipt, inward register, stock register, etc. No confirmations from the hawala dealers were filed either. The Assessing Officer relying on the decision of Hon'ble Gujarat High Court in the case of CIT 3 ITA NO. 4072/MUM/2019 (A.Y.2010-11) vs. Simit P. Sheth 356 ITR 451 disallowed non-genuine purchases by estimating profit @ 12.5% on total such purchases and made addition of Rs.9,79,976/-. 4. Aggrieved by the assessment order dated 21/01/2016 passed under section 143(3) r.w.s. 147 of the Act, the assessee filed appeal before the CIT(A) assailing the addition. The CIT(A) rejected the contentions of the assessee…

M/S Rishabh Steel Centre, Mumbai vs. ITO 19(3)(1), Mumbai

In the result, appeal by assessee is partly allowed

Bench: Shri Vikas Awasthyआअसं. 4070 /मुं/2019 ("न.व.2009-10) M/S. Rishabh Steel Centre, 99, 2Nd Pathan Street, 5Th Kumbharwada, Mumbai 400 004 : अपीलाथ"/ Appellant Pan: Aadpj7654R बनाम/ Vs.

…s to prove trail of goods viz. octroi receipt, inward register, stock register, etc. No confirmations from the hawala dealers were filed either. The Assessing Officer relying on the decision of Hon'ble Gujarat High Court in the case of CIT vs. Simit P. Sheth, 356 ITR 451 disallowed non-genuine purchases by estimating profit @ 12.5% on total such purchases and made addition of Rs.8,98,406/-. 3. Aggrieved by the assessment order dated 02/03/2015 passed under section 143(3) r.w.s. 147 of the Act, the assessee filed appeal before the CIT(A) assailing the addition. The CIT(A) rejected the contentions of assessee and…

Income Tax Officer Ward-3(1)(1), Mumbai vs. M/S. Aman Marketing Services Pvt. Ltd., Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Us.

…lement alone could be brought to tax which was reasonably estimated at 12.5% on the alleged bogus purchases of Rs. 64,20,454/- by the ld. CIT(A) by placing due reliance on the decision of the Hon’ble Gujarat High Court in the case of Simit P Sheth reported in 356 ITR 451. Once the profit 3 M/s. Aman Marketing Services Pvt. Ltd., element at 12.5% is directed to be added, there cannot be any other addition towards commission and other items as everything gets subsumed in the profit element sought to be added. Hence we do not deem it fit to interfere in the said action of the ld. CIT(A). Accordingly, the grounds r…

ITO-3(1)(4), Mumbai vs. M/S. Global Instile Solid Industries Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

…evenue, then only profit element could be brought to tax thereon. This profit element has been reasonably estimated by the ld. CIT(A) @12.5% by placing reliance on the decision of the Hon’ble Gujarat High Court in the case of CIT vs. Simit P Sheth reported in 356 ITR 451 on which we do not find any infirmity and hence, we are not inclined to interfere in the same. Accordingly, the grounds raised by the Revenue are dismissed. 6. In the result, appeal of the Revenue is dismissed. Order pronounced on 17/02/2021 by way of proper mentioning in the notice board. (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER Mumbai; Dated 17…

ACIT 28(3), Mumbai vs. Shri Salim Ahmed Alimahmed, Mumbai

The appeal of the revenue is dismissed

Bench: Shri Manoj Kumar Aggarwal () & Shri Ravish Sood () Ita No.3867 /Mum/2019 (Assessment Year: 2009-10) Acit-28(3), Shri Salim Ahmed Alimahmed Room No. 313, 3Rd Floor, Vs. M/S Sachlim Engineers, R-901, 6Th Tower, Vashi Railway Station, Midc, Ttc Industrial Area, Complex Vashi- 400701 Thane Belapur Road, Rabale, Navim Mumbai – 400701

…ith the view taken by the A.O that the assessee had failed to substantiate the authenticity of the purchase transactions but then, in all fairness after drawing support from the order of the Hon‟ble High Court of Gujarat in the case of CIT vs. Simit P. Sheth, 356 ITR 451 (Guj) he had therein restricted the addition to 12.5% of the impugned purchases. We have given a thoughtful consideration to the issue before us, and are unable to persuade ourselves to subscribe to the claim of the revenue that the CIT(A) had erred in restricting the addition/disallowance to 12.5% of the aggregate value of the impugned purchases…

ACIT 21(3), Mumbai vs. Shri Zaverchand Damji Haria, Mumbai

The appeal stand dismissed in terms of our above order

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Ravish Sood, Jm (Hearing Through Video Conferencing Mode) आयकरअपील सं./ I.T.A. No.3902/Mum/2019 (िनधा"रण वष" / Assessment Year: 2011-12) Acit- 21(3) Shri Zaverchand Damji Haria Room No.209, 2Nd Floor बनाम 124, Ashish Industrial Estate Piramal Chambers, Parel Gokhale Road, Mumbai-400 025 / Vs. Mumbai-400 012 "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aalph-7225-H (अपीलाथ"/Appellant) (""थ" / Respondent) : Assessee By : Shri Chhangur Shrikant Chauhan-Ld. Ar Revenue By : Shri T.S. Khalsa- Ld. Sr.Ar सुनवाई की तारीख/ : 11/02/2021 Date Of Hearing घोषणा की तारीख / : 11/02/2021 Date Of Pronouncement

…owances of purchases. However, Ld. CIT(A) restricted the addition to 25%. Upon further appeal, the co-ordinate bench, vide ITA No.300/Mum/2017 order dated 19/09/2018, relying upon the decision of Hon’ble Gujarat High Court in the case of CIT Vs Simit P.Sheth (356 ITR 451) restricted the addition to the extent of 12.5% of the purchases under consideration. 4. Following the said decision of Tribunal in ITA No.300/Mum/2017, Ld. CIT(A) directed Ld. AO to estimate the additions @12.5%. Though the assessee has accepted the verdict of Ld. CIT(A), however, the revenue is in further appeal before us by way of present appe…

ACIT- Circle- 6(2)(1), Mumbai vs. Creative Electrical Innovative Pvt. Ltd., Mumbai

In the result, appeal of the revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Ble & Shri N.K. Pradhan, Hon'Bleacit – Circle - 6(2)(1) V. M/S. Creative Electrical Innovative Pvt. Ltd., Unit No. 12, 18B, Hammer Smith Indl. Estate Room No. 504, 5Th Floor Pathare Marg, Off. Sitala Devi Temple Road Aayakar Bhavan Mahim (W), Mumbai - 400016 M.K. Road Mumbai – 400 020 Pan: Aadcc4035H (Appellant) (Respondent) Assessee By : None Department By : Ms. Shreekala Pardeshi

…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-31(1), Mumbai vs. Shri Chandrakant L. Nandwana, Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Bleshri N.K. Pradhan, Hon'Bleacit – 31(1) V. Shri Chandrakant L. Nandwana Room No. 602, 6Th Floor 41, Veena Dalvi Industrial Estate Kautilya Bhawan, B.K.C. Bandra(E) Oshiwara, Jogeshwari (W) Mumbai - 400051 Mumbai – 4000102 Pan: Aaepn4505B (Appellant) (Respondent) Assessee By : None Department By : Ms. Shreekala Paradeshi

….CIT(A), we find that the Ld.CIT(A) considered this aspect of the matter with reference to the submissions of the assessee and the averments in the Assessment Order and following the decision of 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: - “6. As regards Ground No. 2 & 3, the assessee submits that he has not agreed to any addition. In any case assessee has a right to appeal against any addition made in his case. No particular reason is given by AO for estimation…

ITO 19 (3)(2), Mumbai vs. Shri. Sawalchand B Sanghvi, Mumbai

In the result, the appeal is partly allowed

Bench: Shri C.N. Prasad, Hon'Ble

…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 C/T 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 Ld.DR…

ITO 19(3)(2), Mumbai vs. Shri. Sawalchand B Sanghvi, Mumbai

In the result, the appeal is partly allowed

Bench: Shri C.N. Prasad, Hon'Ble

…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 C/T 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 Ld.DR…

ITO 19(2)(4), Mumbai vs. Nemichand Kaluchandji Shah, Mumbai

In the result, the appeal is partly allowed

Bench: Shri C.N. Prasad, Hon'Bleincome Tax Officer – 19(2)(4) V. Nemichand Kaluchandji Shah Room No. 217, 2Nd Floor Nelco Steel 56/64 Matru Mandir, Tardev Road Gelabhai Jain, Trust Building Mumbai – 400 007 Nanubhai Desai Road Mumbai - 400004 Pan: Aapps2838H (Appellant) (Respondent) None Assessee By : Department By Shri Sanjay J. Sethi

…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 C/T 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 Ld.DR…

Dineshkumar Chunnilal Mehta, Mumbai vs. ITO 18(1)(4), Mumbai

In the result, impugned order is modified and appeal by the assessee is partly allowed

Bench: Shri Vikas Awasthyआअसं. 3974 /मुं/2019 ("न.व.2010-11) Dineshkumar Chunnilal Mehta, Prop. Of M/S. Balaji Steel & Engg.Co. Office No.15, 1St Floor, Old Sonawala Bldg., 47, C.P Tank Road, Mumbai 400 004 : अपीलाथ"/ Appellant Pan: Aajpm7644K बनाम/ Vs.

…order . The ld. Departmental Representative submitted that the assessee has failed to prove genuineness of the suppliers and transactions with declared hawala dealers. The Assessing Officer following the decision rendered in the case of CIT vs.Simit P. Sheth, 356 ITR 451 (Guj) estimated profit @ 12.5% on inflated purchases and thus, made addition of Rs.2,71,588/-. The ld. Departmental Representative submitted that the addition made by Assessing Officer in respect of bogus purchases is fair and reasonable. The CIT(A) after examining the facts and submissions of assessee has upheld the addition. 3 4. The submissi…

ITO 28 (3)(2), Mumbai vs. Sharwansinghatar Singh Chatarsingh Chundawat, Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri Mahavir Singh & Shri Manoj Kumar Aggarwal: A.Y : 2009-10 Income Tax Officer – 28(3)(2), Vs. Sharwansinghatar Singh Mumbai. (Appellant) Chatarsingh Chundawat (Prop. New Bharat Tools) Shop No. 2, Plot No. 80, Sector-24, Nr. Bank Of India, Turbhe, Navi Mumbai 400 705. Pan : Afwpc2763H (Respondent)

…the assessee has produced documentary evidences such as purchase bills, payment by cheque and also furnished details of purchases and corresponding sales. The CIT(A), considering the decision of Hon'ble Gujarat High Court in the case of CIT vs Simit P. Sheth, 356 ITR 451 (Gujarat), held that the entire purchases cannot be treated as income of the assessee and only the profit element can be added. Therefore, following the Hon'ble Gujarat High Court decision in the case of Simit P. Sheth (supra), the 3 Sharwansinghatar Singh Chatarsingh Chundawat CIT(A) estimated the profit at 12.5% of the bogus purchases. Aggrieve…

Bright Steel Centre, Mumbai vs. ITO 19(1)(2), Mumbai

In the result, appeals are partly allowed

Bench: Shri Saktijit Dey

…IN THE INCOME TAX APPELLATE TRIBUNAL “SMC”BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA no.4142/Mum./2019 (Assessment Year : 2010–11) ITA no.4143/Mum./2019 (Assessment Year : 2011–12) Bright Steel Centre 72, C.P. Tank Road 1st Floor, Charni Road ……………. Appellant Mumbai 400 004 PAN – AADFB9916F v/s Income Tax Officer ……………. Respondent Ward–19(1)(2), Mumbai Assessee by : Shri Vimal Punamiya Revenue by : Shri Sanjay J. Sethi Date of Hearing – 08.12.2020 Date of Order – 28/01/2021 O R D E R Captioned appeals have been filed by the assessee challenging two separate orders, both dated 26th March 20…