CIT v. Simit P. Sheth

M/S Hbd Machines Manufacturing Corpn., Mumbai vs. ITO Ward 18(1)(5), Mumbai

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

Bench: Shri G. Manjunatha & Shri Ravish Soodhbd Machines Manfacturing Vs. Ito,Ward-18(1)(5) Corpn. Room No.619 & 634 G2/G3, Fort Chamber, Aaykar Bhawan Ambalal Doshi Marg M.K.Road Homi Mody Cross Lane No.2 Mumbai-400 020 Fort, Mumbai-400 001 Pan/Gir No.Aacfh0879A Appellant) .. Respondent)

…, 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), has upheld addition made by the AO towards alleged bogus purchases to 40.50% gross profit on total purchases from those parties. The relevant findings of the Ld.CIT(A) are as under:- 3 HBD Machines Manufacturing Corpon. 4.5. It is an undisputed fact that the assessing officer identified parties based on information received from Investigation…

Income Tax Officer-30(3)(5), Mumbai vs. Vijay R. Doshi HUF, Mumbai

Bench: Shri C. N. Prasad, Jm & Shri S. Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No. 7238/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2010-11)

…the genuineness of the purchases when the surrounding circumstances are suspect. However, the assessee has shown onwards sales which has not been doubted by the AO. By relying on the decision of Hon’ble Gujrat High Court in the case of CIT vrs. Smith P. Sheth 356 ITR 451 (Guj), he reduced the disallowance @ 12.5% of bogus purchases and partly allowed the appeal of the assessee. 5. Now before us, the revenue has preferred appeal by raising the grounds of appeal as under:- 01. "On the facts and circumstances of the case, the Ld. CIT(A) has erred in restricting the addition of Rs. 3,22,138/- being 100% to Rs. 40,2…

ACIT 24 (2), Mumbai vs. M/S King Metal Works, Mumbai

In the result, appeal filed by the revenue is dismissed

Bench: Shri G. Manjunatha & Shri Ravish Soodacit-24(2) Vs. King Metal Works Room No.613, 6Th Floor A-6, Nanddham Piramal Chambers, Lalbaug, Indul.Estate, Marol Maroshi Parel, Mumbai-400 012 Road, Andheri(E) Mumbai-400 059

…, 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) has scaled down addition made by the AO towards alleged bogus purchases to 12% gross profit on total purchases from three parties. The relevant findings of the Ld.CIT(A) are as under:- 4.2.6 Thus, a study of different cases, wherein addition on account of bogus purchases has been dealt with by various Courts and Tribunals shows that such additi…

Solo Hardware P. Ltd, Mumbai vs. Asst CIT Cir 5(3)(2), Mumbai

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

Bench: Shri G. Manjunatha & Shri Ravish Sood

…of purchase bills to certain parties. The Ld.CIT(A), after considering relevant submissions of the assessee and also by taken note of various facts, including by following the decision of Hon’ble Gujarat High Court, in the case of CIT vs Simith P.Sheth (2013) 356 ITR 451 has upheld the additions made by the Ld. AO towards 12.5% profit on alleged bogus purchases. The relevant findings of the Ld.CIT(A) are as under;- 5.2 I have carefully considered the facts of the case and submissions of the Id.AR. I have also gone through the decisions relied on by the Ld.AR and the AO. As seen from the facts of the case the AO h…

Akshar Enterprises (Prop.Haresh M Valia), Dombivali vs. ITO WD 3(4), Thane

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

Bench: Shri Rajesh Kumar (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2010-11 Akshar Enterprises (Prop. Haresh The Commissioner Of Income M. Valia), Tax (Appeal) – 1, Flat No. 104, Kartkey C.H.S. Ltd., Office Of Cit (Appeals) – I, Plot No. 05, Midc, Pieri Zone, Vs. Room No. 29, A-Wing, 6Th Floor, Dombivali (E) - 421201 Ashar I.T. Park, Road No. 16-Z, Pan: Afbpv5151P Wagle Indl. Estate, Thane - 400604 (Appellant) (Respondent) Assessee By : Shri Haresh R. Joshi (Ar) Revenue By : Shri Michael Jerald (Dr) Date Of Hearing: 26/02/2020 Date Of Pronouncement: 21/04/2020

…of purchases. Without prejudice, the Ld. counsel submitted that in any case, the addition of computed @ 8% net profit on the total turnover is bad in law. Placing reliance on the judgment of the Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Seth 356 ITR 451(Guj) the Ld. counsel submitted that only profit embedded in such transaction can be added to the income of the assessee. 5. On the other hand, the Ld. departmental representative DR supporting the order passed by the Ld. CIT(A) submitted that addition of 8% net profit on the turnover of the assessee sustained is reasonable and does not warrant an…

ITO 26 (2)(3), Mumbai vs. Mohd.Farroque Mohd. Yakub Khan, Mumbai

In the result, both the appeals by Revenue are dismissed

Bench: Shri Vikas Awasthy & "ी जी. मंजुनाथ, लेखा सद"य के सम" Shri G.Manjunathaआअसं. 7054& 7055/मुं/2018 ("न. व 2010-11 &2011-12)

…‘the Act’ ), the assessee filed appeal before the CIT(A). The first appellate authority after considering the facts of the case, material available on record and the decision of the Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth reported as 356 ITR 451 restricted the disallowance to 9.5% of the alleged bogus purchases. Against the aforesaid findings of the CIT(A), the Revenue is in appeal before the CIT(A). 3 Ms. R. Kavitha, representing the Department submitted that assessee had obtained bogus purchase bills from the declared hawala dealers. The assessee failed to furnish documentary evidence…

ITO 26 (2)(3), Mumbai vs. Mohd.Farroque Mohd. Yakub Khan, Mumbai

In the result, both the appeals by Revenue are dismissed

Bench: Shri Vikas Awasthy & "ी जी. मंजुनाथ, लेखा सद"य के सम" Shri G.Manjunathaआअसं. 7054& 7055/मुं/2018 ("न. व 2010-11 &2011-12)

…‘the Act’ ), the assessee filed appeal before the CIT(A). The first appellate authority after considering the facts of the case, material available on record and the decision of the Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth reported as 356 ITR 451 restricted the disallowance to 9.5% of the alleged bogus purchases. Against the aforesaid findings of the CIT(A), the Revenue is in appeal before the CIT(A). 3 Ms. R. Kavitha, representing the Department submitted that assessee had obtained bogus purchase bills from the declared hawala dealers. The assessee failed to furnish documentary evidence…

ITO 26 (2)(1), Mumbai vs. Kutubbuddin Z. Bhopalwala, Mumbai

In the result, appeal by the Revenue is dismissed

Bench: Shri Vikas Awasthy & "ी जी. मंजुनाथ, लेखा सद"य के सम" Shri G.Manjunathaआअसं. 7047/मुं/2018 ("न. व) Ito -26(2)(1) Building No.C-11, 7Th Floor, Room No.709, Prayakshakar Bhavan, Bandra Kurla Complex, Bandra(E) Mumbai 400 051 ...... अपीलाथ" /Appellant बनाम Vs. Shri Kutubddin Z. Bhopalwala, Prop. Jamali Screen Printer,A-102, Maimoon Manzil Chs,Saifee Park Church Road, Marol, Andheri (E), Mumbai 400 059 ..... ""तवाद"/Respondent Pan:Aewpb2552A

…t ‘the Act’ ) the assessee filed appeal before the CIT(A). The first appellate authority after considering the facts of the case, material available on record and the decision of the Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth reported as 356 ITR 451 restricted the disallowance to 20% of the alleged bogus purchases. Against the aforesaid findings of the CIT(A), the Revenue is in appeal before the Tribunal. 4. Ms. R.Kavitha, representing the Department submitted that the assessee had obtained bogus purchase bills from the hawala dealers. The assessee failed to furnish documentary evidences/de…

ITO-26(2)(5), Mumbai vs. Shri. Rambhawan D. Gupta, Mumbai

In the result, the appeal filed by the revenue is hereby ordered to be dismissed

Bench: Shri Amarjit Singh, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं/ I.T.A. No.472/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2011-12) Ito 26(2)(5) बिधम/ Shri Rambhawan D. Gupta R. No. 506, 5Th Floor, C-11 Prop. Of M/S. R. D. Metal Vs. Bkc, Bandra East, Mumbai- Works 400051.. Gala No. 2, Sangam Market, Creek No.3, 90 Feet Road, Netaji Nagar, Sakinaka, Mumbai-72. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aimpg5900H (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Ms. Jotilakshmi Nayak (Dr) Assessee By: Shri Awadhesh Kumar सुनवाई की तारीख / Date Of Hearing: 12/02/2020 घोषणा की तारीख /Date Of Pronouncement: 19 /03/2020 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Present Appeal Against The Order Dated 13.08.2018 Passed By The Commissioner Of Income Tax (Appeals) -38, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2011- 12. 2. The Revenue Has Raised The Following Grounds: -

…ssed by my learned predecessor in appellant's own case for AY 2010-11 wherein he had disallowed 12.5% while passing the order for that year by following various case laws including the decision of Hon’ble High Court of Qujratin the case of Simit P Seth, 2013 (356 ITR 451). 1 find that the order passed by my Ld. predecessor is very reasonable. Since the facts and circumstances for both the years are same, respectfully following my 14. predecessor, I confirm the disallowance at 12.5% of the reported bogus purchases. Accordingly, the AO is directed to restrict the disallowance to 125% instead of disallowance of enti…

ACIT - 26 (2), Mumbai vs. Rajkumar T. Nagar, Mumbai

In the result, both appeals by the Revenue are dismissed

Bench: Shri Vikas Awasthy & "ी जी. मंजुनाथ, लेखा सद"य के सम" Shri G.Manjunathaआअसं. 7048& 7049/मुं/2018 ("न. व 2010-11 &2011-12)

…t ‘the Act’ ) the assessee filed appeal before the CIT(A). The first appellate authority after considering the facts of the case, material available on record and the decision of the Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth reported as 356 ITR 451 restricted the disallowance to 20% of the alleged bogus purchases. Against the aforesaid findings of the CIT(A), the Revenue is in appeal before the CIT(A). 3 Ms. R. Kavitha, representing the Department submitted that the assessee had obtained bogus purchase bills from the declared hawala dealers. The assessee failed to furnish documentary evide…

ACIT - 26 (2), Mumbai vs. Rajkumar T. Nagar, Mumbai

In the result, both appeals by the Revenue are dismissed

Bench: Shri Vikas Awasthy & "ी जी. मंजुनाथ, लेखा सद"य के सम" Shri G.Manjunathaआअसं. 7048& 7049/मुं/2018 ("न. व 2010-11 &2011-12)

…t ‘the Act’ ) the assessee filed appeal before the CIT(A). The first appellate authority after considering the facts of the case, material available on record and the decision of the Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth reported as 356 ITR 451 restricted the disallowance to 20% of the alleged bogus purchases. Against the aforesaid findings of the CIT(A), the Revenue is in appeal before the CIT(A). 3 Ms. R. Kavitha, representing the Department submitted that the assessee had obtained bogus purchase bills from the declared hawala dealers. The assessee failed to furnish documentary evide…

Vijay B Shah (HUF), Mumbai vs. ITO-17(3)(5), Mumbai

In the result, appeal of the assessee is allowed

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blevijay B Shah (Huf) V. Income Tax Officer – 17(3)(5) Room No.137 12A Giriraj Building Aayakar Bhavan, M.K. Road St Road, Carnac Bunder Mumbai – 400 020 Mumbai – 400 092 Pan: Aabhv7438J (Appellant) (Respondent) Assessee By : None Department By : Smt Samatha Mullamuddi

…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 4 Vijay B Shah (HUF) income or furnishing of inaccurate particulars as the profit element was determined by way of adhoc estimation. Coming to the interest, the a…

M/S Jaydeep Metals & Tubes, Mumbai vs. ITO-19(2)(1), Mumbai

In the result, appeal of the assessee is partly allowed

Bench: Shri Vikas Awasthy

…ugned order. The ld.Departmental Representative submitted that the Assessing Officer and CIT(A) has estimated GP @12.5% in line with the decision of Hon’ble Gujarat High Court in the case 3 आ अ सं. ITA NO.86/MUM/2019(A.Y.2011-12) of CIT vs. Simit P. Sheth,356 ITR 451. The ld.Departmental Representative prayed for upholding the impugned order and dismissing the appeal of assessee. 4. Both sides heard. Orders of authorities below perused. The assessee made purchases to the tune of Rs.40,51,270/- from the hawala dealers. The Assessing Officer estimated the GP at 12.5% on the alleged bogus purchases. The CIT(A)…

Shri Shantilal C Shah, Mumbai vs. Income Tax Officer, 19(3) (3), Mumbai

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

Bench: Shri Saktijit Dey & Shri G. Manjunathashantilal C. Shah Vs. Ito-19(3)(3) Shop No.17, Mistry Building Matru Mandir 2Nd Floor, 159 Tardeo Road 2Nd Khumbharwada Lane Mumbai-400 007 Mumbai-400 004 Pan/Gir No.Bdeps5540M (Appellant) .. Respondent)

…held that in case of purchases claims to have made from alleged hawala dealers, only profit element embedded in those purchases needs to be taxed, but not total purchase from those parties. The Hon’ble Gujarat High Court, in the case of CIT vs Simith P.Sheth 356 ITR 451 had considered a similar issue and held that at the time of estimation of profit from alleged bogus purchases no uniform yardsticks could be adopted, but it depends upon facts of each case. The ITAT, Mumbai, in number of cases had considered an identical issue and depending upon facts of each case, directed the Ld.AO to estimate gross profit of 1…

ITO 27(1)(4), Mumbai vs. M/S Excell Tech Systems, Mumbai

In the result, both the appeal by the Revenue are dismissed

Bench: Shri Vikas Awasthy

…‘the Act’), the assessee filed appeal before CIT(A). The first appellate authority after considering the facts of the case and 3 आ अ सं. ITA NO.419/MUM/2019(A.Y.2010-11) आ अ सं. ITA NO.420/MUM/2019(A.Y.2011-12) the decision in the case of Simit P. Sheth, 356 ITR 451(Guj) restricted the disallowance in respect of alleged bogus purchases to 12.5% of the total such purchases i.e. Rs.2,35,564/-. Against the findings of the CIT(A), the Revenue is in appeal before the Tribunal. 4. Shri R. Bhoopathi, representing the Department submitted that during the assessment proceedings, the assessee failed to produce the ven…

ITO 27(1)(4), Mumbai vs. M/S Excell Tech Systems, Mumbai

In the result, both the appeal by the Revenue are dismissed

Bench: Shri Vikas Awasthy

…‘the Act’), the assessee filed appeal before CIT(A). The first appellate authority after considering the facts of the case and 3 आ अ सं. ITA NO.419/MUM/2019(A.Y.2010-11) आ अ सं. ITA NO.420/MUM/2019(A.Y.2011-12) the decision in the case of Simit P. Sheth, 356 ITR 451(Guj) restricted the disallowance in respect of alleged bogus purchases to 12.5% of the total such purchases i.e. Rs.2,35,564/-. Against the findings of the CIT(A), the Revenue is in appeal before the Tribunal. 4. Shri R. Bhoopathi, representing the Department submitted that during the assessment proceedings, the assessee failed to produce the ven…

ITO, Ward-1(2), Mumbai vs. Mehul Indukumar Parekh, Mumbai

In the result, appeals of the revenue are dismissed

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

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC”, MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER ITA NOs. 1312, 1313 & 1314/MUM/2019 (A.Ys: 2009-10, 2010-11 & 2011-12) Income Tax Officer – 1(2) v. Shri Mehul Indukumar Parekh Room No. 24, 6th Floor 136/6, Jay Neminath Darshan Ashar I.T Park, Road No. 16Z Garden Lane, Sanghani Estate Ghatkopar (W), Mumbai – 400 088 Wagle Industrial Estate Thane – 400 604 PAN: AIXPP7863R (Appellant) (Respondent) Assessee by : Shri Deepak Raje Department by : Shri Bheraram Date of Hearing : 04.03.2020 Date of Prono…

ITO, Ward-1(2), Mumbai vs. Mehul Indukumar Parekh, Mumbai

In the result, appeals of the revenue are dismissed

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

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC”, MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER ITA NOs. 1312, 1313 & 1314/MUM/2019 (A.Ys: 2009-10, 2010-11 & 2011-12) Income Tax Officer – 1(2) v. Shri Mehul Indukumar Parekh Room No. 24, 6th Floor 136/6, Jay Neminath Darshan Ashar I.T Park, Road No. 16Z Garden Lane, Sanghani Estate Ghatkopar (W), Mumbai – 400 088 Wagle Industrial Estate Thane – 400 604 PAN: AIXPP7863R (Appellant) (Respondent) Assessee by : Shri Deepak Raje Department by : Shri Bheraram Date of Hearing : 04.03.2020 Date of Prono…

ITO, Ward-1(2), Mumbai vs. Mehul Indukumar Parekh, Mumbai

In the result, appeals of the revenue are dismissed

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

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC”, MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER ITA NOs. 1312, 1313 & 1314/MUM/2019 (A.Ys: 2009-10, 2010-11 & 2011-12) Income Tax Officer – 1(2) v. Shri Mehul Indukumar Parekh Room No. 24, 6th Floor 136/6, Jay Neminath Darshan Ashar I.T Park, Road No. 16Z Garden Lane, Sanghani Estate Ghatkopar (W), Mumbai – 400 088 Wagle Industrial Estate Thane – 400 604 PAN: AIXPP7863R (Appellant) (Respondent) Assessee by : Shri Deepak Raje Department by : Shri Bheraram Date of Hearing : 04.03.2020 Date of Prono…

R No. 25 B Wing 6Th Floor Ahsar It Park Wagle Indil. Estate Road No 16Z Thane West, Thane vs. Shri. Jignesh Amrutlal Shah, Thane

In the result, appeal of the revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Bleincome Tax Officer -2(1) V. Shri Jignesh Amrutlal Shah Room No. 25, B-Wing, 6Th Floor A/203, Walchand Complex 90 Feet Road, Bhayander(W) Ashar I.T Park, 6Th Floor Thane – 401 101 Road No. 16Z Wagle Industrial Estate Pan:Accps2511E Thane – 400 604 (Appellant) (Respondent) Assessee By : Shri Jignesh Amrutlal Department By : Shri Bheraram

…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…