CIT v. Simit P. Sheth

Evas Machineries Pvt. Ltd., Mumbai vs. ACIT 12(2)-1, Mumbai

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

…e with quantity details and amounts and sales invoices, delivery challan and ledger account. No further enquiry was done. Sale is not disputed. The books of account has not been rejected. The Hon’ble High Court of Gujarat in case CIT Vs. Simit P. Sheth (2013) 356 ITR 451 (Guj) has held that the profit embedded to the purchase is liable to be added to the income of the assessee in the interest of justice. It is specifically held that the whole addition of bogus purchase is not justifiable. There are number of decisions in which it has been specifically held that in case of bogus purchase the 3 A.Y.2009-10 addition…

ITO - 28(1)(2), Navi Mumbai vs. M/S Bmh Concare Technology Inc, Navi Mumbai

The appeal stands dismissed

Bench: Hon’Ble Shri Saktijit Dey, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकर अपील सं./ I.T.A. No.3092/Mum/2019 (िनधा"रण वष" / Assessment Year:2009-10) Income Tax Officer-28(1)(2) M/S. Bmh Concare Technology Inc. बनाम/ Room No.325, 3Rd Floor Plot No.16, Sector-6 Tower No.6,Vashi Railway Station Sanpada, Navi Mumbai-400 705 Vs. Complex, Vashi, Navi Mumbai-400 703 Pan/Gir No. Aagfb-6284-R (अपीलाथ"/Appellant) (""थ" / Respondent) : Assessee By : None Revenue By : Shri Oommen Tharian-Ld. Sr. Dr सुनवाई की तारीख/ : 10/11/2020 Date Of Hearing घोषणा की तारीख / : 10/11/2020 Date Of Pronouncement

…me, Ld. AO made peak addition of Rs.42.53 Lacs u/s. 69C. 4. Upon further appeal, Ld. CIT(A), inter-alia, relying upon the decision of Hon'ble Gujarat High Court in the case of CIT Vs. Simit P. M/s. BMH Concare Technology Inc. Assessment Year: 2009-10 Sheth [356 ITR 451] restricted the addition to 12.5% of aggregate purchases and partly allowed the appeal. Aggrieved, the revenue is in further appeal before us. It appears that the assessee has accepted the verdict and has not preferred any further appeal. 5. Upon due consideration of factual matrix as enumerated in preceding paragraphs, we find no reason to inter…

ITO 29(2)(4), Mumbai vs. Shri Nilesh Natwarlal, Mumbai

Accordingly. Hence, we do not find any infirmity in the order of the ld. CIT(A) granting this relief to the assessee. Accordingly, the grounds raised by the revenue are dismissed

Bench: Shri C. N. Prasad, Jm & Shri S. Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No. 3340/Mum/2019 (निर्धारणवर्ा / Assessment Year: 2011-12)

…are alleged to be bogus purchases. However keeping in view of the various judicial precedents in the case of Hon’ble apex court decision in the case of H.M. Esufali Adbdulali as well as Hon’ble Gujrat High Court decision in the case of Simith P. Sheth [2013][356 ITR 451(Guj.)]., wherein it was held that 12.5% being the possible profit element embedded in the purchases made through non genuine parties (bogus purchases) . Therefore, the addition made by the AO on such purchases at 12.5% is 4 I.T.A. No. 3340/Mum/2019 Shri Nilesh Natwarlal Doshi appropriate and would be justified. In case, the appellant has already…

ITO Ward-22(1)(5), Mumbai vs. Shri Hasmukh J. Ruparelia, Mumbai

In the result, the appeal filed by the assessee is partly allowed whereas the appeal filed by the Revenue is dismissed

Bench: Shri Mahavir Singh () & Shri N.K. Pradhan () Assessment Year: 2009-10

…ggrieved by the order of the AO, the assessee filed an appeal before the Ld. CIT(A). We find that vide order dated 11.12.2018, the Ld. CIT(A) by following the judgment of the Hon’ble Gujarat High Court in the case of Simit Shri Hasmukh J. Ruparelia 5 P. Seth 356 ITR 461 (Guj) confirmed the disallowance @ 12.5% made by the AO in the case of purchases of Rs. 30,74,342/-from M/s Vaishali Enterprises which comes to Rs.3,84,293/-. However, he restricted the disallowance in the case of purchases from M/s Maulik Steel Corporation to 12.5% of the disputed purchases of Rs. 29.98,636/-. Thus the Ld. CIT(A) restricted the…

Shri Hasmukh J. Ruparelia, Mumbai vs. ITO, Ward-22(1)(5), Mumbai

In the result, the appeal filed by the assessee is partly allowed whereas the appeal filed by the Revenue is dismissed

Bench: Shri Mahavir Singh () & Shri N.K. Pradhan () Assessment Year: 2009-10

…ggrieved by the order of the AO, the assessee filed an appeal before the Ld. CIT(A). We find that vide order dated 11.12.2018, the Ld. CIT(A) by following the judgment of the Hon’ble Gujarat High Court in the case of Simit Shri Hasmukh J. Ruparelia 5 P. Seth 356 ITR 461 (Guj) confirmed the disallowance @ 12.5% made by the AO in the case of purchases of Rs. 30,74,342/-from M/s Vaishali Enterprises which comes to Rs.3,84,293/-. However, he restricted the disallowance in the case of purchases from M/s Maulik Steel Corporation to 12.5% of the disputed purchases of Rs. 29.98,636/-. Thus the Ld. CIT(A) restricted the…

ITO 28(1)(1), Navi Mumbai vs. Aqua Mech Engineering Corporation, Navi Mumbai

In the result, appeal filed by the revenue for assessment year 2011-

Bench: Shri Shamim Yahya (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2011-12 The Income Tax Officer – 28(1)(1), M/S Aquamech Engineering Room No. 329, 3Rd Floor, Corporation, 6Th Tower, Vashi Railway Station 186/187, Central Facility Complex, Vashi, Vs. Building-2, Apmc Market-Ii, Navi Mumbai - 400703 Phase-Ii, Sector-19, Vashi, Navi Mumbai - 400703 Pan: Aakfa3440Q (Appellant) (Respondent) Revenue By : Shri Jitendra Kumar (Dr) Assessee By : Shri Anish Shah (Ar) Date Of Hearing: 20/10/2020 Date Of Pronouncement: 29/10/2020

…assessee submitted that the facts of the cases relied upon by the revenue are different from the facts of the present case. The Ld. counsel further pointed out that the Hon’ble Gujarat Assessment Year: 2011-12 High Court in the case of CIT vs. Simit P. Sheth 356 ITR 451, has upheld the addition of 12.5% of bogus purchases shown by the assessee holding that in such cases only profit element embedded in such purchases could be added to the income of the assessee. The Ld. counsel further submitted that since the findings of the Ld. CIT (A) are based on the ratio laid down by the Hon’ble Gujarat High Court and the d…

ITO - 33(3)(5), Mumbai vs. Vipul K Sheth, Mumbai

In the result, appeal filed by the revenue for assessment year 2010-

Bench: Shri Shamim Yahya (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2010-11 The Ito – 33(3)(5), Vipul K Sheth, R. No. 727, 7Th Floor, 4/C/74, Rustomjee Regency Kautilya Bhawan, Bkc, J.S. Road, Dahisar (W), Mumbai - 400051 Vs. Mumbai - 400068 Pan: Aagps6278L (Appellant) (Respondent)

…luding the cases relied upon by the parties and the authorities below. The Ld. CIT (A) has restricted the addition to 12.5% of the alleged bogus purchases by following the ratio laid down by the Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth 356 ITR 451 (Guj. The concluding para of the Ld. CIT (A) reads as under:- “3. Ground nos.1 to 5 relate to the addition of entire purchases of Rs.11,02,806 as unexplained expenditures. The AO has mentioned in the order that as per the information from the Sales tax department purchases were made by the assessee from suspicious parties. During the course of a…

ITO 27(1)(5), Mumbai vs. Jayesh Bhupatbhai Shah, Mumbai

In the result, appeal filed by the revenue for assessment year 2009-

Bench: Shri Shamim Yahya (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2009-10 The Ito 27(1)(5), Jayesh Bhupatbhai Shah, Room No. 410, 4Th Floor, 508, 5Th Floor, Arihant Building Tower No. 6, Vashi Railway Sudha Park, Opp., Station Complex, Vashi, Vs. Shanti Path, Ghatkopar (E), Navi Mumbai - 400703 Mumbai - 400077 Pan: Aagps2834L (Appellant) (Respondent)

…ther hand, the Ld. counsel for the assessee submitted that the Ld. CIT (A) has rightly restricted the addition of 12.5% of the total amount of bogus purchases by following the ratio laid down by Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth 356 ITR 451. The Ld. counsel further pointed out that since the AO has not disputed the sales made by the assessee, the Ld. CIT(A) has rightly restricted the addition to 12.5% of the alleged bogus purchases. Assessment Year: 2009-10 6. We have heard the rival submissions of the parties and perused the material on record including the cases relied upon by th…

ITO - 28(3)(4), Navi Mumbai vs. Shri Vithob Damodar Nayak, Navi Mumbai

In the result, appeal filed by the revenue for assessment year 2011-

Bench: Shri Shamim Yahya (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2011-12 The Ito – 28(3)(4), Shri Vithob Damodar Nayak, Room No. 320, 3Rd Floor, R-385, Ttc Industrial Area, 6Th Tower, Vashi Railway Station Rabale, Midc Rabale, Complex, Vashi, Vs. Navi Mumbai - 400701 Navi Mumbai - 400703 Pan: Aidpn8193L

…luding the cases relied upon by the parties and the authorities below. The Ld. CIT (A) has restricted the addition to 12.5% of the alleged bogus purchases by following the ratio laid down by the Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth 356 ITR 451 (Guj. The concluding para of the Ld. CIT (A) reads as under:- “6.1 Ground No 1 to 3 of the appeal are against addition of Rs. 5,30,896/- being 25% of non- genuine purchases of Rs. 21,23,584/- As per the investigations carried out by the Sales Tax Authorities, the aforementioned party was found to be involved in giving accommodation entries only w…

ITO, - 22(2)(1), Mumbai vs. Shri Kalmesh P Desai (HUF), Mumbai

In the result, these appeals filed by the Revenue stand dismissed

Bench: Shri Shamim Yahya & Shri Ram Lal Negi: A.Y : 2011-12

…s 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 upheld in principle but it should be based on ratio of Simit P. Seth 356 ITR 461 (Guj.) as the appellant is a trader not manufacturer. Thus the A.O is directed to restrict the disallowance to the extent of 12.5% of purchase from suspicious dealers.” 4. Against above order, Revenue is in appeal before the ITAT. We have heard ld. DR and perused the record. We find that in this case the sales have not been doubted. It is settle…

ITO - 22(2)(1), Mumbai vs. Shri Kamlesh P Desai, Mumbai

In the result, these appeals filed by the Revenue stand dismissed

Bench: Shri Shamim Yahya & Shri Ram Lal Negi: A.Y : 2011-12

…s 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 upheld in principle but it should be based on ratio of Simit P. Seth 356 ITR 461 (Guj.) as the appellant is a trader not manufacturer. Thus the A.O is directed to restrict the disallowance to the extent of 12.5% of purchase from suspicious dealers.” 4. Against above order, Revenue is in appeal before the ITAT. We have heard ld. DR and perused the record. We find that in this case the sales have not been doubted. It is settle…

ITO 11 (2)(4), Mumbai vs. M/S Superflo Filters Pvt. Ltd, Mumbai

In the result, appeal filed by the revenue for assessment year 2010-

Bench: Shri Shamim Yahya (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2010-11 The Income Tax Officer 11(2)(4), M/S Superflow Filters Pvt. Ltd., Room No. 349, 3Rd Floor, B-5/103-104, Greenland Co-Op Aayakar Bhavan, M.K. Road, Society, Shrinivas Bagarka Marine Lines, Vs. Road, J.B. Nagar, Mumbai - 400020 Andheri (East), Mumbai - 400059 Pan: Aadcs4955N (Appellant) (Respondent)

…, the Ld. counsel for the assessee submitted that the facts of the cases relied upon by the revenue are different from the facts of the present case. The Ld. counsel further pointed out that the Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth 356 ITR 451, has upheld the addition of 12.5% of bogus purchases shown by the assessee holding that in such cases only profit element embedded in such purchases could be added to the income of the assessee. The Ld. counsel further submitted that since the findings of the Ld. CIT (A) are based on the ratio laid down by the Hon’ble Gujarat High Court and the d…

ITO, - 22(2)(1), Mumbai vs. Shri Kalmesh P Desai (HUF), Mumbai

In the result, these appeals filed by the Revenue stand dismissed

Bench: Shri Shamim Yahya & Shri Ram Lal Negi: A.Y : 2011-12

…s 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 upheld in principle but it should be based on ratio of Simit P. Seth 356 ITR 461 (Guj.) as the appellant is a trader not manufacturer. Thus the A.O is directed to restrict the disallowance to the extent of 12.5% of purchase from suspicious dealers.” 4. Against above order, Revenue is in appeal before the ITAT. We have heard ld. DR and perused the record. We find that in this case the sales have not been doubted. It is settle…

ITO, - 22(2)(1), Mumbai vs. Shri Kalmesh P Desai (HUF), Mumbai

In the result, these appeals filed by the Revenue stand dismissed

Bench: Shri Shamim Yahya & Shri Ram Lal Negi: A.Y : 2011-12

…s 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 upheld in principle but it should be based on ratio of Simit P. Seth 356 ITR 461 (Guj.) as the appellant is a trader not manufacturer. Thus the A.O is directed to restrict the disallowance to the extent of 12.5% of purchase from suspicious dealers.” 4. Against above order, Revenue is in appeal before the ITAT. We have heard ld. DR and perused the record. We find that in this case the sales have not been doubted. It is settle…

ITO 28(3)(1), Mumbai vs. Sadhana Jaisingh Patel, Mumbai

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

Bench: Shri Shamim Yahya (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2011-12 & Assessment Year: 2010-11 The Income Tax Officer-28(3)(1), Sadhana Jaisingh Patel, Room No. 316, 3Rd Floor, C/6/6/2/1, Neel Kamal, 6Th Tower, Vashi Railway Station Sector – 3, Cbd Belapur, Complex, Vashi, Vs. Navi Mumbai Navi Mumbai - 400703 Pan: Aexpp4021M (Appellant) (Respondent)

…, the Ld. counsel for the assessee submitted that the facts of the cases relied upon by the revenue are different from the facts of the present case. The Ld. counsel further pointed out that the Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth 356 ITR 451, the Hon’ble Court has upheld the addition of 12.5% of alleged bogus purchases holding that the only profit element embedded in such purchases can be added to the income of the assessee. The Ld. counsel further submitted that since the findings of the Ld. CIT (A) are based on the ratio laid down by the Hon’ble Gujarat High Court and the decisions…

ITO-11(2)(4), Mumbai vs. Superflo Filters Pvt Ltd, Mumbai

In the result, the appeal of the revenue is dismissed

Bench: Shri Justice P P Bhatt & Shri M.Balaganesh, Am Ito-11(2)(4), Mumbai Vs. M/S. Superflo Filters Pvt. Ltd., Room No.349, 3Rd Floor B-5/103-104, Greenland Co-Op Aayakar Bhavan Society, M.K.Road, Marine Lines Shrinivas Bagarka Road, Mumbai – 400 020 J.B.Nagar, Andheri-East Mumbai – 400 059 Pan/Gir No. Aadcs4955N (Appellant) .. (Respondent)

…ht it fit to bring to tax only the profit element embedded in the value of such purchases and restricted the addition to the extent of 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 (Guj). Against the said direction of the ld. CIT(A), the assessee had not preferred any appeal before us and only the revenue had preferred this impugned appeal. We find that even though the assessee could not prove the genuineness of purchases made from the aforesaid suppliers, the corresponding sales made out of such purchases has not been disp…

DCIT Cirlce-3, Thane vs. Shri. Shreekumar Janardan Unnithan, Thane

In the result these appeals filed by the revenue stand dismissed

…THE INCOME TAX APPELLATE TRIBUNAL “SMC” Bench, Mumbai Shri Shamim Yahya (AM) I.T.A. No. 3729/Mum/2019 (Assessment Year 2009-10) I.T.A. No. 3730/Mum/2019 (Assessment Year 2011-12) DCIT Circle-3 Shri Sreekumar Vs. Room No. 02 Janardhan Unnithan 6th Floor 2704, Whitefiled Aashar IT Park Hiranandani Meadows B-Wing, Wagle Pokharan Road No. 2 Industrial Estate Thane(W)-400 610. Road No. 16Z Thane(W)-400 604. PAN : AAGPU6868G (Appellant) (Respondent) Assessee by Ms. Rutuja N. Pawar Department by Shri Brajendra Kumar Date of Hearing 26.10.2020 Date of Pronouncement 27.10.2020 O R D E R These are appeals by the…

Mohd Ismail I A Shaikh, Mumbai vs. ITO 26(3)(4), Mumbai

In the result, the appeal of the assessee is partly allowed

Bench: Shri Vikas Awasthy & Shri Rajesh Kumarassessment Year: 2009-10 M/S. Mohd. Ismail I.A. Ito 26(3)(4) Shaikh, Mumbai (Prop. Sarco Wire Traders) Shop No.21, 4Th Lane, Vs. Taar Bazar, Kurla Andheri Road, Sakinaka, Mumbai – 400 072 Pan: Akhps5579E (Appellant) (Respondent) Present For: Assessee By : None Revenue By : Shri Akhtar H. Ansari, D.R. Date Of Hearing : 01.10.2020 Date Of Pronouncement : 27.10.2020 O R D E R

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “D”, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER Assessment Year: 2009-10 M/s. Mohd. Ismail I.A. ITO 26(3)(4) Shaikh, Mumbai (Prop. Sarco Wire Traders) Shop No.21, 4th Lane, Vs. Taar Bazar, Kurla Andheri Road, Sakinaka, Mumbai – 400 072 PAN: AKHPS5579E (Appellant) (Respondent) Present for: Assessee by : None Revenue by : Shri Akhtar H. Ansari, D.R. Date of Hearing : 01.10.2020 Date of Pronouncement : 27.10.2020 O R D E R Per Rajesh Kumar, Accountant Member: The present appeal has been preferred by the assessee agai…

ITO 14(1)(1), Mumbai vs. M/S Apex Furnaces Pvt Ltd., Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Bleincome Tax Officer – 14(1)(1) V. M/S. Apex Furnaces Pvt. Ltd., Room No. 431, 4Th Floor 206, Krishna Bhavan Aayakar Bhavan Govandi Station Road, Deonar M.K. Road, Mumbai-400 020 Mumbai – 400 088 Pan: Aaac6001A

…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 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: - “I have considered the facts of the case and submissions made by the appellant. It is seen from the facts available on record that the assessee is a Private Limited Company and engaged in the business of bakery products partic…

ITO, 28(2)(5), Mumbai vs. M/S Raj Tools Centre, Navi Mumbai

In the result, appeals of the Revenue are dismissed

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

…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 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) for the A.Y. 2011-12 observed as under: - “Grounds No. 2 to 6 of the appeals are against addition of ₹.2,60,603/-, as unexplained expenditure u/s 69C of the Act. As per the investigations carried out by the Sales Tax Authorities, the aforementione…