CIT v. Simit P. Sheth

ITO 33(2)91), Mumbai vs. M/S Jaswantilal Shantilal Shah (HUF), Mumbai

In the result, appeal is dismissed

Bench: Shri Saktijit Dey & Shri N.K. Pradhan

…, he observed that the assessee might have purchased the goods from undeclared sources and to regularize such purchases has obtained accommodation bills. Thereafter, relying upon the decision of the Hon’ble Gujarat High Court in CIT v/s Simit P. Sheth, [2013] 356 ITR 451 (Guj.), the learned Commissioner (Appeals) held that the entire purchases cannot be 4 Jaswantlal Shantilal Shah (HUF) disallowed but the profit element embedded in such purchases can be considered for addition. Accordingly, he restricted the addition to 12.5% of the non–genuine purchases. 6. We have heard the learned Departmental Representative…

ITO 33(1)(1), Mumbai vs. Shri. Ashok Kumar Shyamlal Gupta, Mumbai

In the result, appeal is dismissed

Bench: Shri Saktijit Dey & Shri N.K. Pradhan

…ity. 5. After considering the submissions of the assessee and in the context of facts and material on record and relying upon certain judicial precedents, and more particularly, the decision of the Hon’ble Gujarat High Court in CIT v/s Simit P. Sheth, [2013] 356 ITR 451 (Guj.), learned Commissioner (Appeals) restricted the addition to 12.5% of the non–genuine purchases. 6. We have considered the submissions of learned Departmental Representative and perused the material on record. Strongly relying upon the observations of the Assessing Officer, learned Departmental Representative has submitted that since the as…

Anil K Shah (HUF), Mumbai vs. ITO Ward 23 (2)(1), Mumbai

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

Bench: Shri Rajesh Kumar (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2009-2010 Shri Anil K. Shah (Huf), The Ito Ward – 23(2)(1), 703, Supershav, Nahur Road, 111, Matru Mandir, Sarvodaya Nagar, Mulund (West), Tardeo, Grant Road, Mumbai - 400080 Vs. Mumbai Pan: Aadha5072M (Appellant) (Respondent) & Assessment Year: 2009-2010 Shri Anil K. Shah, The Ito Ward – 23(2)(1), 703, Supershav, Nahur Road, 111, Matru Mandir, Sarvodaya Nagar, Mulund (West), Tardeo, Grant Road, Mumbai - 400080 Vs. Mumbai Pan: Aapps6042M (Appellant) (Respondent) Assessee By : Shri Devendra Jain (Ar) Revenue By : Shri Jernold Michel (Dr) Date Of Hearing: 21/08/2020 Date Of Pronouncement: 10/09/2020

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “A”, MUMBAI BEFORE SHRI RAJESH KUMAR (AM) AND SHRI RAM LAL NEGI (JM) Assessment Year: 2009-2010 Shri Anil K. Shah (HUF), The ITO Ward – 23(2)(1), 703, Supershav, Nahur Road, 111, Matru Mandir, Sarvodaya Nagar, Mulund (West), Tardeo, Grant Road, Mumbai - 400080 Vs. Mumbai PAN: AADHA5072M (Appellant) (Respondent) & Assessment Year: 2009-2010 Shri Anil K. Shah, The ITO Ward – 23(2)(1), 703, Supershav, Nahur Road, 111, Matru Mandir, Sarvodaya Nagar, Mulund (West), Tardeo, Grant Road, Mumbai - 400080 Vs. Mumbai PAN: AAPPS6042M (Appellant) (Respondent) Assessee by : S…

ITO - 19(2)(3), Mumbai vs. Mithalal Bhavarlal Jain, Mumbai

In the result, appeal filed by the Revenue and appeal filed by the assessee for Asst

Bench: Shri Saktijit Dey & Shri G. Manjunathaito-19(2)(3) Vs. Mr. Mithalal Bhavarlal Jain Room No.218, 2Nd Floor Pro.M/S.Aristo Pipe & Matru Mandir, Tardeo Road Fittings, Shop No.3 Mumbai-400 007 Ground Floor,86/72 Durgadevi Street Mumbai-400 004 Pan/Girno.Admpj5673P (Appellant) .. (Respondent) & Mr. Mithalal Bhavarlal Jain Vs. Ito-19(2)(3) Room No.218, 2Nd Floor Pro.M/S.Aristo Pipe & Fittings, Shop No.3 Matru Mandir, Tardeo Road Ground Floor,86/72 Mumbai-400 007 Durgadevi Street Mumbai-400 004

…, no additions could be made on the basis of information received from third party. The Ld.CIT(A), after considering relevant submission of the assessee and also, by following the decision of Hon’ble Gujarat High Court, in the case of CIT vs. Simith P. Sheth (356 ITR 451) scaled down addition made by the AO towards alleged bogus purchases to 12.50% gross profit on total purchases from those parties. 6. None appeared for the assessee. We have heard ld. DR, perused the material available on record and gone through orders of the authorities below. We find that the Ld. AO has made peak amount of investments made on…

ITO, 28(1)(2), Mumbai vs. M/S Arfat Steel Metal Industries, Mumbai

In the result, appeal filed by the revenue for assessment year 2009-2010

Bench: Shri Shamim Yahya (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2009-10 The Income Tax Officer – 28(1)(2), M/S Arfat Steel Metal Industries, Room No. 328 3Rd Floor, Tower Plot No. 30, Pawane Village, No. 6, Vashi Railway Station Navi Mumbai Complex, Vashi, Vs. Pan: Aajfa3696D Navi Mumbai - 400703 (Appellant) (Respondent) Revenue By : Shri Michael Jerald (Dr) Assessee By : Shri Dharan Gandhi (Ar) Date Of Hearing: 23/07/2020 Date Of Pronouncement: 29/07/2020

…me as unexplained expenditure u/s 69C of the Act. 5. On the other hand, the Ld. counsel for the assessee submitted that the findings of the Ld. CIT (A) are based on the ratio laid down by the Hon’ble High Court of Gujarat in the case of CIT vs. Simit P. Sheth 356 ITR 451 (Guj), wherein the Hon’ble High Court has upheld the findings of the Tribunal holding that in the cases of bogus purchases not the entire purchase but only the profit element embedded in purchases are required to be disallowed. Since, the findings of the Ld. CIT (A) are in accordance with the law laid down by the Hon’ble Gujarat High Court, there…

Income Tax Officer Ward 28(3)(3), Mumbai vs. Sureshkumar N. Kadri, Mumbai

Bench: Sri Mahavir Singh, Vp & Sri Nk Pradhan, Am आमकयअऩीरसिं./ Ita No. 3236/Mum/2019 (ननधाायणवषा / Assessment Years 2010-11) The Income-Tax Officer Shri Sureshkumar Kadri Ward 28(3)(3), Room No.319, 3 Rd W-96-C, Midc Industrial Floor, 6Th Tower, Vashi Railway फनाभ/ Area, Rabale, Station Complex, Vashi, Navi Navi Mumbai-400 701 Vs. Mumbai-400 703 (अऩीराथी/ Appellant) (प्रत्मथी/ Respondent) स्थामीरेखासिं./Pan No. Anbpk 8662J अऩीराथी की ओय से/Appellant By : Shri Bhoopati, Dr प्रत्मथी की ओय से/Respondent By : Shri Bhadnesh Doshi, Ar सुनवाईकीतायीख/ Date Of Hearing: 27.07.2020 घोषणाकीतायीख/ Date Of Pronouncement: 27.07.2020

…of the assessee. Aggrieved, assessee preferred the appeal before CIT(A), who restricted the disallowance at 12.5% of the bogus purchases by observing in para 7 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: - Shri Sureshkumar Kadri “The Grounds No. 1 & 2 of the appeal are against the addition of Rs. 33,39588/- as non-genuine purchases. As per the investigations carried out by the Sates Tax Authorities the aforementioned parties were found to be involved in giving accommodation entries only without -actually supplying the…

ACIT 27 (2), Mumbai vs. Shri. Pradhyumn Prataparai Thakkar, Mumbai

The appeal of the assessee is allowed, and appeal of the Assessing Officer is dismissed

Bench: Shri Saktijit Dey, Jm & Shri S. Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No. 1489/Mum/2019 (निर्धारणवर्ा / Assessment Year: 2012-13)

…IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JM & SHRI S. RIFAUR RAHMAN, AM आयकरअपीलसं./ I.T.A. No. 1489/Mum/2019 (निर्धारणवर्ा / Assessment Year: 2012-13) ACIT 27(2) Shri Pradhyumn Prataprai Room No. 420, 4th floor, Thakkar, बिधम/ Tower No. 6, Vashi 703 B, Krishna Neelkanth Vihar Shaid Bhagat Singh Railway Station Complex, Vs. Navi Mumbai-400 703 Kunwar Marg Vidyavihar, East, Mumbai-400077 स्थायीलेखासं./जीआइआरसं./PAN No. AABPT5648J (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant : Shri Vinay Sheel Gautam, DR by प्रत्यथीकीओरसे/Respondentby : None सुनवा…

Assistant Commissioner of Income Tax, Circle - 6(3)(2), Mumbai vs. M/S Jeevandeep Prakashan Private Limited, Mumbai

In the result, appeal of the revenue is dismissed

Bench: Shri Pawan Singh & Shri M. Balaganeshacit Circle 6(3)(2), M/S Jeevandeep Prakashan Aayakar Bhavan, Pvt. Ltd., M.K. Road, Mumbai-400020. Vs. Plot No. 7, Industrial Estate, Off Ba Road, Opposite Lalbaug, Mumbai-400012, Pan: Aabcj0182E Appellant Respondent Revenue By : Miss Samatha ( Sr. Dr) Assessee By : Shri Prashant Shah (Dr) Date Of Hearing : 21.07.2020 Date Of Pronouncement : 21.07.2020 Orderunder Section 254(1)Of Income Tax Act Per Pawan Singh; 1. This Appeal By Revenue Is Directed Against The Order Of Ld. Commissioner Of Income-Tax Appeals (Ld. Cit(A)-12, Mumbai Dated 14.01.2019 For Assessment Year 2020-11. 2. Brief Facts Of The Case Are That The Assessee Is A Company Engaged In The Business Of Publication Of Educational Books, Filed Its Return Of Income For Assessment Year 2020-11 Declaring Income Of Rs. 1.60 Crore. The Return Of Income Was Selected For Scrutiny & Assessment Was Completed Under Section 143(3) On 14.03.2013 Accepting The Return Income. Subsequently, Case Was Reopened Under Section 147. The Assessing Officer Reopened The Case On The Basis Of Information Received From The Dgit (Inv.), Mumbai

…IN THE INCOME-TAX APPELLATE TRIBUNAL “F” BENCH MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ACIT Circle 6(3)(2), M/s Jeevandeep Prakashan Aayakar Bhavan, Pvt. Ltd., M.K. Road, Mumbai-400020. Vs. Plot No. 7, Industrial Estate, Off BA Road, Opposite Lalbaug, Mumbai-400012, PAN: AABCJ0182E Appellant Respondent Revenue by : Miss Samatha ( Sr. DR) Assessee by : Shri Prashant Shah (DR) Date of Hearing : 21.07.2020 Date of Pronouncement : 21.07.2020 ORDERUNDER SECTION 254(1)OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER; 1. This appeal by revenue is directed agains…

Shri Pravin C. Bokadia, Mumbai vs. ITO 19(2)(5), Mumbai

In the result, appeal by the assessee is partly allowed

Bench: Shri A.D. Jain (Vp) & Shri Shamim Yahya (Am)

…uly entered. The assessing officer has not doubted the sales. In these circumstances the assessing officer concluded that assessee has made the purchases through grey market and hence following the honourable Gujarat High Court decision CIT Vs. Simit P. Sheth 356 ITR 451 (Guj.) He made a disallowance of 12.5%. 7. Upon assessee's appeal learned CIT(appeals) has enhanced the addition to hundred percent. In doing so she has referred to the honourable jurisdictional High Court decision in the case of Shoreline Hotels Pvt. Ltd.(supra). It is settled law that case law cannot be considered in isolation of the context t…

ITO 27 (2)(3), Mumbai vs. Shri. Laxmichand A Dabhi, Mumbai

The appeal of the assessee is allowed, and appeal of the Assessing Officer is dismissed

Bench: Shri C. N. Prasad, Jm & Shri S. Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No. 1257/Mum/2019 (निर्धारणवर्ा / Assessment Year: 2011-12)

…es itself cannot be doubted as rightly adjudicated by Ld. CIT(A) that AO has not doubted sales declared by the assessee, only he suspects the purchases. 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. 6. In the net result, the appeal filed by the revenue stands dismissed. 7. It is pertinent to mention here that this order is pronounced after a period of 90 days from the date of conclusion of the hearing. In this regard, we…

Mr. Hanuman Dhanania, Mumbai vs. ITO Ward 17 (1)(5), Mumbai

The appeal of the assessee is allowed, and appeal of the Assessing Officer is dismissed

Bench: Shri C. N. Prasad, Jm & Shri S. Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No. 1255/Mum/2019 (निर्धारणवर्ा / Assessment Year: 2009-10)

…rchases overlooking that assessee has already declared GP ratio @ 3.99% as submitted by assessee in the statement of facts. As per the decision Coordinate Bench of ITAT and the decision of Hon’ble Gujrat High Court in the case of CIT vrs. Smith P. Seth (2013) 356 ITR 451 (Guj), we are inclined to direct the AO to estimate the income @ 8.51% (12.5% - 3.99%) of the alleged purchases. Accordingly, the grounds raised by the assessee are partly allowed. 9. In the net result, the appeal filed by the assessee stands partly allowed. 10. It is pertinent to mention here that this order is pronounced after a period of 90 d…

DCIT Circle-3, Thane vs. Shri. Surjyamani Krishna Gauda, Thane

The appeal of the assessee is allowed, and appeal of the Assessing Officer is dismissed

Bench: Shri C. N. Prasad, Jm & Shri S. Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No. 1265/Mum/2019 (निर्धारणवर्ा / Assessment Year: 2009-10)

…um/2019 Shri Surjyamani Krishna Gauda, adjudicated by Ld. CIT(A) that AO has not doubted sales declared by the assessee, only he suspects the purchases. 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. 6. In the net result, the appeal filed by the revenue stands dismissed. 7. It is pertinent to mention here that this order is pronounced after a period of 90 days from the date of conclusion of the hearing. In this regard, we…

ITO 33 (2)(5), Mumbai vs. Shri. Paras Lalit Vora, Mumbai

The appeal of the assessee is allowed, and appeal of the Assessing Officer is dismissed

Bench: Shri C. N. Prasad, Jm & Shri S. Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No. 1254/Mum/2019 (निर्धारणवर्ा / Assessment Year: 2011-12)

…by Ld. CIT(A) that AO has not doubted sales 4 I.T.A. No. 1254/Mum/2019 Shri Paras Lalit Vora declared by the assessee, only he suspects the purchases. 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. 6. In the net result, the appeal filed by the revenue stands dismissed. 7. It is pertinent to mention here that this order is pronounced after a period of 90 days from the date of conclusion of the hearing. In this regard, we…

Ilesh Amrutlal Gadhia, Mumbai vs. DCIT CC-4(2), Mumbai

Appeals stand partly allowed to the extent indicated in the order

Bench: Hon’Ble Shri Vikas Awasthy, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am

…rators 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 CIT v. Simit P. Sheth (2013) 356 ITR 451/219 taxman 85 Mag./38 taxmann.com 385, which has estimated disallowance @f 2.5% 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…

Shri. Ilesh Amrutlal Gadhia, Mumbai vs. DCIT-4(2), Mumbai

Appeals stand partly allowed to the extent indicated in the order

Bench: Hon’Ble Shri Vikas Awasthy, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am

…rators 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 CIT v. Simit P. Sheth (2013) 356 ITR 451/219 taxman 85 Mag./38 taxmann.com 385, which has estimated disallowance @f 2.5% 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…

DCIT- C.Circle, 4(2), Mumbai vs. Ilesh Amrutlal Gadhia, Mumbai

Appeals stand partly allowed to the extent indicated in the order

Bench: Hon’Ble Shri Vikas Awasthy, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am

…rators 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 CIT v. Simit P. Sheth (2013) 356 ITR 451/219 taxman 85 Mag./38 taxmann.com 385, which has estimated disallowance @f 2.5% 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…

DCIT- C.Circle, 4(2), Mumbai vs. Ilesh Amrutlal Gadhia, Mumbai

Appeals stand partly allowed to the extent indicated in the order

Bench: Hon’Ble Shri Vikas Awasthy, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am

…rators 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 CIT v. Simit P. Sheth (2013) 356 ITR 451/219 taxman 85 Mag./38 taxmann.com 385, which has estimated disallowance @f 2.5% 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(1)(5), Mumbai vs. M/S Hi-Tech International, Mumbai

In the result, the appeal filed by the Revenue is dismissed

Bench: Shri R.C. Sharmaincome Tax Officer-28(1)(5) M/S. Hi-Tech International Room No. 325, 3Rd Floor 402, The Great Eastern Galleria Tower No. 6, Vashi Railway Vs. Plot No. 20, Sector -04 Station Complex, Vashi Nerul, Navi Mumbai Navi Mumbai 400703 Pan – Aacfh6972N Appellant Respondent

…isclosed parties in the grey market at lower rates and purchases were shown as being made from the impugned parties to suppress its profits. In such a situation, the various Courts including the Hon'ble Gujarat High Court in the case of CIT vs Simit P. Sheth, 356 ITR 451 have held that not the entire purchases but only the profit element embedded in these purchases was to be disallowed. The Hon'ble Gujarat High Court in this case has held that profit margin of 12.5% of the bogus purchases will be reasonable. Respectfully following the Order in the case of Simit P. Sheth the addition is restricted to 12.5% of the…

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

In the result, the appeal is dismissed

…s of the case and in law, the Ld. CIT(A) has erred in directing the A.O. to restrict the addition of bogus purchases to 12.5% as against 100% addition made by the A. O., relying on the decision of Hon'ble Gujarat High Court in the case of CIT Vs Simit P Seth, 356 ITR 451"? (2) "Whether on the facts and in tne circumstances of the case and in law, the Ld. CIT(A) has erred in not considering the latest Apex Court decision in the case of N. K. Proteins Ltd Vs. DCIT (769 of 2017), wherein the Hon'ble Supreme Court has confirmed 100% addition made on account of bogus purchases"? Assessment Year: 2010-11 Page 2 of 4 (…