CIT v. Simit P. Sheth

356 ITR 451High Court2013#27 most cited

What is CIT v. Simit P. Sheth authority for?

Additions for alleged bogus purchases should be restricted to the profit element, not the entire turnover. The profit element is often estimated at 12.5% of the purported bogus purchases.

1,465

judgments rely on this decision, according to BharatTax’s citation analysis of 367,368 Indian tax judgments — from 2016 to 2026.

Also referred to as

CIT v. Simit P. Sheth · section 69C · bogus purchases · undisclosed income · addition on profit element · gross profit · net profit · reassessment · assessment procedure

Also reported as

38 Taxmann 385

Sections most often in play

Section 143(3)Section 147Section 148Section 132Section 131Section 69CSection 133(6)Section 143(2)

Issues it is cited on

section 69csection 131section 133(6)reassessment proceedingsundisclosed incomesearch and seizuresection 69section 132section 13section 148businesssection 147

Judgments citing CIT v. Simit P. Sheth

ITO 26 (2)(4), Mumbai vs. Prime Steel, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 6988/MUM/2018[2011-12]Status: DisposedITAT Mumbai19 Dec 2019AY 2011-12

Bench: Sri Mahavir Singhआयकर अपील सुं./ Ita No. 6988/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2011-12) The Income Tax Officer Prime Steel Ward 26(2)(4) 3-B/26-A, Gafoor Khan Room No. 511, 5Th Floor, C- Estate, L.B.S. Marg, Kurla बनाम/ 11, Bandra Kurla Complex, (West), Mumbai-400 070 Vs. Bandra (East), Mumbai-400 051 (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) स्र्थायी लेखा सुं./Pan No. Aaifp1056B अपीलार्थी की ओर े / Appellant By : Shri Akhtar H. Ansari, Dr प्रत्यर्थी की ओर े / Respondent By : None ुिवाई की तारीख / Date Of Hearing: 19.12.2019 घोर्णा की तारीख / Date Of Pronouncement : 19.12.2019 आदेश / O R D E R

For Appellant: Shri Akhtar H. Ansari, DRFor Respondent: None
Section 143(3)

…urts and Judicial Authorities have adopted estimation of varying percentages to arrive at the profit embedded in such transactions depending upon the nature of business as laid down by the Hon’ble High court of Gujarat in the case of Simit P. Seth reported in 356 ITR 451 and in the case of CIT vs. M/s Bholanath Polyfab Pvt. Ltd (2013) reported in 355 ITR 290. As per the details, submitted by the 4 | P a g e Prime Steel appellant it is observed that the average gross profit % for assessment years, 2009-10 & 2010-11 and 2012-13 & 2013- 14 is 7.4% (7.15+7.25+7.51++7.78) & average net profit ratio for the said assess…

ITO - 26 (2)(4, Mumbai vs. Power Hydraulic & Equipments, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 6987/MUM/2018[2011-12]Status: DisposedITAT Mumbai19 Dec 2019AY 2011-12

Bench: Sri Mahavir Singhआयकर अपील सुं./ Ita No. 6987/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2011-12) The Income Tax Officer Power Hydraulic & Equipments Ward 26(2)(4), Room No. Gala No.16, Cresent Indl. Co- बनाम/ 511, 5Th Floor,, C-11, Bandra Premises Ltd. R.C. Layalika Kurla Complex, Bandra Street, Kherani Road, Vs. (East), Mumbai-400 051 Sakinaka,Mumbai-400 072 (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) स्र्थायी लेखा सुं./Pan No. Aalfp8380M अपीलार्थी की ओर े / Appellant By : Shri Akhtar H. Ansari, Dr प्रत्यर्थी की ओर े / Respondent By : None ुिवाई की तारीख / Date Of Hearing: 19.12.2019 घोर्णा की तारीख / Date Of Pronouncement : 19.12.2019 आदेश / O R D E R

For Appellant: Shri Akhtar H. Ansari, DRFor Respondent: None
Section 143(3)

…ssee submitted the ledger accounts of the above parties and bank statements extracts evidencing the payments through bank cheque. I noted that facts of this case are similar to the case of Hon'ble High Court of Gujarat in the case of Simit P Seth V CIT (2013) 356 ITR 451(Guj) wherein it had on occasion to deliver its judgment by confirming the decision of the ITAT which has estimated the disallowance at 12.5% of the disputed bogus purchases to meet the end of Justice. Even now before me also revenue could not dislodge the factual aspects noted by CIT(A). I find that the CIT(A) has rightly applied the profit rate…

ITO 27 (3)(5), Mumbai vs. Vrajlal Manilal Shah, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 6879/MUM/2018[2011-12]Status: DisposedITAT Mumbai19 Dec 2019AY 2011-12

Bench: Sri Mahavir Singhआयकर अपील सुं./ Ita Nos. 6879/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2011-12) The Income Tax Officer Shri Vrajlal Manilal Shah Ward 27(3)(5) 37, Vadhani Industrial Esate, Room No. 428, 4Th Floor, L.B.S. Road, Opp. Shreyas बनाम/ Tower No.6, Vashi Railway Cinema, Ghatkopar (W), Vs. Station Complex, Vashi, Mumbai-400 086 Navi Mumbai-400 703 (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) स्र्थायी लेखा सुं./Pan No. Agps2788D

For Appellant: Shri Akhtar H. Ansari, DRFor Respondent: Ms Dinkle Hariya, AR
Section 143(3)Section 147

…of the above parties and bank statements extracts evidencing the payments through bank cheque. I noted that facts of this case are similar to the case of Hon'ble High Court of Gujarat in the case of Simit P Seth V CIT 4 | P a g e Vrajlal Manilal Shah (2013) 356 ITR 451(Guj) wherein it had on occasion to deliver its judgment by confirming the decision of the ITAT which has estimated the disallowance at 12.5% of the disputed bogus purchases to meet the end of Justice. Even now before me also revenue could not dislodge the factual aspects noted by CIT(A). I find that the CIT(A) has rightly applied the profit rate…

ACIT, Circle- 4(2)(2), Mumbai vs. Mazda Hi-Tech Electricals Pvt. Ltd., Mumbai

In the result, both the appeals are dismissed

ITA 6039/MUM/2018[2010-11]Status: DisposedITAT Mumbai19 Dec 2019AY 2010-11

Bench: Shri Saktijit Deyand Shri G. Manjunatha

For Appellant: Shri K.K. VedFor Respondent: Smt. Jyothi Lakshmi Nayak
Section 133(6)Section 143(1)Section 143(3)Section 147

…tion bills. Thus, in that view of the matter, the profit element embedded in such purchases can be considered for addition. As could be seen, learned Commissioner (Appeals) relying upon the decision of the Hon’ble Gujarat High Court in CIT v/s Simit P. Sheth, 356 ITR 451 (Guj.), has estimated the profit element embedded in such non–genuine purchases @ 12.5% and restricted the addition to that extent in both the assessment years. In our view, the aforesaid decision of learned Commissioner (Appeals) is in conformity with the ratio laid down in various decisions of the Tribunal and the High Courts in similar nature…

ITO 19 (2)(2), Mumbai vs. Shri Kheemaram K. Choudhary, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 6948/MUM/2018[2009-10]Status: DisposedITAT Mumbai18 Dec 2019AY 2009-10

Bench: Sri Mahavir Singhआयकर अपील सुं./ Ita No. 6948/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2009-10) Income Tax Officer-19(2)(2) Shri Kheemaram K Choudhary Room No. 214, 2Nd Floor, Office No.16, 1St Floor, Haji बनाम/ Matru Mandir, Tardeo Road, Kasam Bldg. No.8, Durgadevi Mumbai-400 007 Street, Khumbharwada, Vs. Mumbai-400 004 (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) स्र्थायी लेखा सुं./Pan No. Afmpc7661N अपीलार्थी की ओर े / Appellant By : Shri Akhtar H. Ansari, Dr प्रत्यर्थी की ओर े / Respondent By : None ुिवाई की तारीख / Date Of Hearing: 18.12.2019 घोर्णा की तारीख / Date Of Pronouncement : 18.12.2019 आदेश / O R D E R

For Appellant: Shri Akhtar H. Ansari, DRFor Respondent: None
Section 143(3)

…ssee submitted the ledger accounts of the above parties and bank statements extracts evidencing the payments through bank cheque. I noted that facts of this case are similar to the case of Hon'ble High Court of Gujarat in the case of Simit P Seth V CIT (2013) 356 ITR 451(Guj) wherein it had on occasion to deliver its judgment by confirming the decision of the ITAT which has estimated the disallowance at 12.5% of the disputed bogus purchases to meet the end of Justice. Even now before me also revenue could not dislodge the factual aspects noted by CIT(A). I find that the CIT(A) has rightly applied the profit rate…

ITO 33 (3)(3), Mumbai vs. Sarika Vishnuprasad Rai, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 6880/MUM/2018[2011-12]Status: DisposedITAT Mumbai17 Dec 2019AY 2011-12

Bench: Sri Mahavir Singhआयकर अपील सुं./ Ita No. 6880/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2011-12) The Income Tax Officer Smt. Sarika Vishnuprasad Rai Ward-33(3)(3), R.No. 603, 5104, Mercury, Evershine बनाम/ 6Th Floor, C-12, Pratyakshakar City, Thakur Village, Kandivali Bhavan, Bkc, (East), Kumbai-400 101 Vs. Mumbai-400 051 (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) स्र्थायी लेखा सुं./Pan No. Adxpr4306A अपीलार्थी की ओर े / Appellant By : Shri Akhtar H. Ansari, Dr प्रत्यर्थी की ओर े / Respondent By : None ुिवाई की तारीख / Date Of Hearing: 17.12.2019 घोर्णा की तारीख / Date Of Pronouncement : 17.12.2019 आदेश / O R D E R

For Appellant: Shri Akhtar H. Ansari, DRFor Respondent: None
Section 143(3)

…ssee submitted the ledger accounts of the above parties and bank statements extracts evidencing the payments through bank cheque. I noted that facts of this case are similar to the case of Hon'ble High Court of Gujarat in the case of Simit P Seth V CIT (2013) 356 ITR 451(Guj) wherein it had on occasion to deliver its judgment by confirming the decision of the ITAT which has estimated the disallowance at 12.5% of the disputed bogus purchases to meet the end of Justice. Even now before me also revenue could not dislodge the factual aspects noted by CIT(A). I find that the CIT(A) has rightly applied the profit rate…

ITO 27 (3)(5), Mumbai vs. Vimlesh J. Doshi, Mumbai

In the result, both the appeals of the Revenue are dismissed

ITA 6877/MUM/2018[2010-11]Status: DisposedITAT Mumbai17 Dec 2019AY 2010-11

Bench: Sri Mahavir Singhआयकर अपील सुं./ Ita No. 6877/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2010-11) आयकर अपील सुं./ Ita No. 6878/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2011-12) The Income Tax Officer Shri Vimlesh J. Doshi Ward 27(3)(5), Unit No.119, Reena Complex, Room No. 428, 4Th Floor, Vidyavihar (W), बनाम/ Tower No.6, Vashi Railway Mumbai-400 086 Vs. Station Complex, Vashi, Navi Mumbai-400 703 (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) स्र्थायी लेखा सुं./Pan No. Ahppd0604B अपीलार्थी की ओर े / Appellant By : Shri Akhtar H. Ansari, Dr प्रत्यर्थी की ओर े / Respondent By : None ुिवाई की तारीख / Date Of Hearing: 17.12.2019 घोर्णा की तारीख / Date Of Pronouncement : 17.12.2019 आदेश / O R D E R महावीर ससुंह, न्याययक सदस्य/ Per Mahavir Singh, Jm:

For Appellant: Shri Akhtar H. Ansari, DRFor Respondent: None
Section 143(3)Section 147

…ssee submitted the ledger accounts of the above parties and bank statements extracts evidencing the payments through bank cheque. I noted that facts of this case are similar to the case of Hon'ble High Court of Gujarat in the case of Simit P Seth V CIT (2013) 356 ITR 451(Guj) wherein it had on occasion to deliver its judgment by confirming the decision of the ITAT which has estimated the disallowance at 12.5% of the disputed bogus purchases to meet the end of Justice. Even now before me also revenue could not dislodge the factual aspects noted by CIT(A). I find that the CIT(A) has rightly applied the profit rate…

ITO -33 (3)(1), Mumbai vs. Rajesh C. Dixit, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 6876/MUM/2018[2011-12]Status: DisposedITAT Mumbai17 Dec 2019AY 2011-12

Bench: Sri Mahavir Singhआयकर अपील सुं./ Ita No. 6876/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2011-12) The Income Tax Officer Rajesh C. Dixit Ward 33(3)(1), Shop No.8, Ground Floor, बनाम/ Room No.602, 6Th Floor, C-12 Shree Naman Plaza, S.V. Pratyakshakar Bhavan, Bkc, Road, Kandivali (W), Vs. Mumbai-400 051 Mumbai-400 067 (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) स्र्थायी लेखा सुं./Pan No. Aahpd3896J अपीलार्थी की ओर े / Appellant By : Shri Akhtar H. Ansari, Dr प्रत्यर्थी की ओर े / Respondent By : Shri Nitesh Joshi, Ar ुिवाई की तारीख / Date Of Hearing: 17.12.2019 घोर्णा की तारीख / Date Of Pronouncement : 17.12.2019 आदेश / O R D E R

For Appellant: Shri Akhtar H. Ansari, DRFor Respondent: Shri Nitesh Joshi, AR
Section 143(3)

…ssee submitted the ledger accounts of the above parties and bank statements extracts evidencing the payments through bank cheque. I noted that facts of this case are similar to the case of Hon'ble High Court of Gujarat in the case of Simit P Seth V CIT (2013) 356 ITR 451(Guj) wherein it had on occasion to deliver its judgment by confirming the decision of the ITAT which has estimated the disallowance at 12.5% of the disputed bogus purchases to meet the end of Justice. Even now before me also revenue could not dislodge the factual aspects noted by CIT(A). I find that the CIT(A) has rightly applied the profit rate…

ACIT 27 (1), Mumbai vs. Ajit Prhlad Yelmar, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 6875/MUM/2018[2010-11]Status: DisposedITAT Mumbai17 Dec 2019AY 2010-11

Bench: Sri Mahavir Singhआयकर अपील सुं./ Ita No. 6875/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2010-11) The Asst. Commissioner Of Shri Ajit Prahlad Yelmar Income Tax, Circle 27(1), Block No.5137, Bldg No.157, Room No. 408, 4Th Floor, Near Tilak Nagar, Chembur, बनाम/ Tower No.6, Vashi Railway Mumbai Vs. Station Complex, Vashi, Navi Mumbai (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) स्र्थायी लेखा सुं./Pan No. Aaapy0329G अपीलार्थी की ओर े / Appellant By : Shri Akhtar H. Ansari, Dr प्रत्यर्थी की ओर े / Respondent By : None ुिवाई की तारीख / Date Of Hearing: 17.12.2019 घोर्णा की तारीख / Date Of Pronouncement : 17.12.2019 आदेश / O R D E R

For Appellant: Shri Akhtar H. Ansari, DRFor Respondent: None
Section 143(3)Section 147

…dingly, the Ld. AO treated the amount of Rs.16,04243/- as bogus 6 | P a g e Ajit Prahlad Yelmar purchase and added the same to the total income of the appellant. Under similar circumstances the Hon'ble High Court of Gujarat in the case of Simit P Seth. 2013 (356 ITR 451) had on occasion to deliver its judgment by confirming the decision of the ITAT which has estimated the disallowance at 12.5% of the disputed bogus purchases to meet the end of Justice. The head- note of the decision is reproduced as under- "Section 145 of the Income-Tax Act, 1961- Method of Accounting- Estimation of Profits [Bogus Purchases]- A…

ITO - 19 (1)(3), Mumbai vs. Ghevarchand Sagarmal Sanghvi, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 6871/MUM/2018[2011-12]Status: DisposedITAT Mumbai17 Dec 2019AY 2011-12

Bench: Sri Mahavir Singhआयकर अपील सुं./ Ita No. 6871/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2011-12) The Income Tax Officer, Ghevarchand Sagarmal Sanghvi Ward 19(1)(3), Santosh Steel Corporation, बनाम/ Room No.220, 2Nd Floor, 4 Varsha, 2Nd Khetwadi Lane, Matru Mandir, Tardeo Road, Near Alankar Cineman, Vs. Mumbai-400 007 Mumbai-400004 (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) स्र्थायी लेखा सुं./Pan No. Abnps8984P अपीलार्थी की ओर े / Appellant By : Shri Akhtar H. Ansari, Dr प्रत्यर्थी की ओर े / Respondent By : Shri Rajesh Chamaria, Ar ुिवाई की तारीख / Date Of Hearing: 17.12.2019 घोर्णा की तारीख / Date Of Pronouncement : 17.12.2019 आदेश / O R D E R महावीर ससुंह, न्याययक सदस्य/ Per Mahavir Singh, Jm:

For Appellant: Shri Akhtar H. Ansari, DRFor Respondent: Shri Rajesh Chamaria, AR
Section 144Section 147

…rieved, assessee preferred the appeal before CIT(A), who restricted the disallowance at 12.5% of the bogus purchases by following the decisions of Hon’ble Gujarat High Court in the case 4 | P a g e Ghevarchand Sagarmal Sanghvi of CIT vs. Smith P. Seth (2013) 356 ITR 451 (Guj) by observing in para 5.5 as under: - “5.5 From the aforesaid cited decision of Gujarat High Court in the case of Simit P Sheth (supra), it can be observed that the appropriate GP percentage for computing the unaccounted profits from the purchases from the alleged hawala/ bogus suppliers should factor the savings of taxes etc. due to the un…

M/S.Nelco Steel India, Mumbai vs. Income Tax Officer 19(3)(4), Mumbai

The appeal of the assessee is allowed

ITA 4499/MUM/2018[2009-10]Status: DisposedITAT Mumbai17 Dec 2019AY 2009-10

Bench: Shri C.N. Prasad & Shri Rajesh Kumarassessment Year: 2009-10

For Appellant: NoneFor Respondent: Ms. Kavita P. Kaushik, D.R
Section 143(1)Section 147Section 148

…lorry receipt, transportation details etc. Finally, the AO treated the purchases as bogus and applied a rate of 12.5% to tax the profits on the said bogus purchases by following the decision of Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth 356 ITR 451 and thus made an addition of Rs.11,13,225/-. It is pertinent to state that assessee is dealing in ferrous and non ferrous metal. 5. In the appellate proceedings, the Ld. CIT(A) dismissed the appeal of the assessee by holding that where the sales were not disputed then course available before AO is to apply GP rate in order to tax the savings mad…

Ratnagiri Stainless P. Ltd, Mumbai vs. ITO 5(3)(1), Mumbai

In the result, the appeals are partly allowed

ITA 6011/MUM/2018[2010-11]Status: DisposedITAT Mumbai16 Dec 2019AY 2010-11

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2010-11 & Assessment Year: 2011-12 M/S Ratnagiri Stainless Pvt. Ito 5(3)(1), Mumbai. Ltd., Office No. 8, 4Th Floor, Vs. 245/247, Alankar Cinema Building S V P Road, Mumbai-400004 Pan No. Aadcr2993P Appellant Respondent Assessee By : Mr. Vimal Punmiya, Ar Revenue By : Mrs. Jothilakshmi Nayak, Dr Date Of Hearing : 26/11/2019 Date Of Pronouncement: 16/12/2019

For Appellant: Mr. Vimal Punmiya, ARFor Respondent: Mrs. Jothilakshmi Nayak, DR
Section 133(6)Section 143Section 143(1)Section 143(3)Section 147Section 148Section 234A

…for cross-examination cannot be considered bona fide. 4.2 Thereafter, the Ld. CIT(A) observed that the profit embedded in such purchases be brought to tax. Relying on the decision of the Hon’ble Gujarat High Court in the case of CIT v. Simit P. Sheth (2013) 356 ITR 451 (Guj) and also following similar decision of the ITAT Mumbai dated 04.07.2017 in the case of ITO v. M/s RBS Copper Products Pvt. Ltd. (ITA No. 1057) and order M/s Ratnagiri Stainless Pvt. dated 04.04.2017 of the Tribunal in assessee’s own case (ITA No. 4463/M/2016), the Ld. CIT(A) agreed with the order of the AO in estimating profit @ 12.5% of t…

Shri Rameshkumar Savalachand Jain, Mumbai vs. Income Tax Officer 19(3)(1), Mumbai

In the result, appeal filed by the assessee for AY 2009-10 is partly allowed

ITA 5263/MUM/2019[2011-12]Status: DisposedITAT Mumbai12 Dec 2019AY 2011-12

Bench: Shri G. Manjunatha & Shri Ravish Soodramesh Kumar Savalchand Vs. Ito-19(3)(1) Jain Room No.202, Matru Mandir, 2Nd Floor Prop: M/S. Mahalaxmi Steel Industreis Tardeo 53/57, Bhandari Street, Shop Mumbai-400 007 No.4, 1St Kumbharwada Lane Mumbai-400 004 Pan/Gir No.Aacpj0692D (Appellant) .. (Respondent) &

Section 142(1)Section 147Section 250(1)

…d taken by the assessee challening reopening assessment. Insofar as addition towards alleged bogus purchases after considering arguments 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 to 12.50% gross profit on alleged bogus purchases/-. The relevant findings of the Ld.CIT(A) are as under:- 5. Carefully considered the rival submissions, perused the material on record and duly considered the factual matrix of the case as well as the applicable legal position before arriving the following con…

Ramesh Kumar Savalchand Jain, Mumbai vs. ITO - 19 (3)(1), Mumbai

In the result, appeal filed by the assessee for AY 2009-10 is partly allowed

ITA 5679/MUM/2018[2009-10]Status: DisposedITAT Mumbai12 Dec 2019AY 2009-10

Bench: Shri G. Manjunatha & Shri Ravish Soodramesh Kumar Savalchand Vs. Ito-19(3)(1) Jain Room No.202, Matru Mandir, 2Nd Floor Prop: M/S. Mahalaxmi Steel Industreis Tardeo 53/57, Bhandari Street, Shop Mumbai-400 007 No.4, 1St Kumbharwada Lane Mumbai-400 004 Pan/Gir No.Aacpj0692D (Appellant) .. (Respondent) &

Section 142(1)Section 147Section 250(1)

…d taken by the assessee challening reopening assessment. Insofar as addition towards alleged bogus purchases after considering arguments 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 to 12.50% gross profit on alleged bogus purchases/-. The relevant findings of the Ld.CIT(A) are as under:- 5. Carefully considered the rival submissions, perused the material on record and duly considered the factual matrix of the case as well as the applicable legal position before arriving the following con…

Devendra P.Sheth, Mumbai vs. ITO Ward- 33 (1)(4), Mumbai

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

ITA 6424/MUM/2018[2010-11]Status: DisposedITAT Mumbai10 Dec 2019AY 2010-11

Bench: Shri R.C.Sharma & Shri Vikas Awasthy

For Appellant: Shri Dharmil JhaveriFor Respondent: Shri Kumar Padampani Bora
Section 147

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC”, MUMBAI BEFORE SHRI R.C.SHARMA, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO.6425/MUM/2018(A.Y. 2011-12) Devendra P. Sheth, C-604, Pushpa Heritage, Dhanukar Wadi, Gokhale Road, Mumbai 400 067. PAN:ALQPS0537B ...... Appellant Vs. ITO Ward 33(1)(4), Income Tax Office, Bandra Kurla Complex, Mumbai ..... Respondent Appellant by : Shri Dharmil Jhaveri Respondent by : Shri Kumar Padampani Bora Date of hearing : 10/12/2019 Date of pronouncement : 10/12/2019 ORDER PER VIKAS AWASTHY, JM: The appeal of the assessee in ITA No.6424/Mum/…

ITO 29(2)(1), Mumbai vs. Shri Ketan Dhirajlal Gada, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 5560/MUM/2018[2010-11]Status: DisposedITAT Mumbai10 Dec 2019AY 2010-11

Bench: Shri S.Rifaur Rahman & Shri Ram Lal Negi

Section 133(6)Section 143(3)Section 147

…nd held that in case 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 profit of 10 to 1…

Income Tax Officer-9(2)(3), Mumbai vs. Shri Manish P. Shah, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 2397/MUM/2018[2009-10]Status: DisposedITAT Mumbai10 Dec 2019AY 2009-10

Bench: Shri G. Manjunatha & Shri Ravish Soodito-19(2)(3) Vs. Manish P.Shah 2Nd Room No.218, Floor, C/O M/S. Microlink Matru Mandir Technologies, Office No.3, 3Rd 14Th Tardeo Road Floor, Mehta Mumbai-400 007 Mansion, Tribuvan Road, Off. Lamington Road Mumbai-400 004 Pan/Gir No.Aaeps4599J (Appellant) .. Respondent)

Section 143(3)Section 147

…, 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 6.5% gross profit on total purchases from those parties. The ld. CIT(A) had also rejected legal ground taken by the assessee challenging reopening assessment u/s 147 of the Income Tax Act, 1961. The relevant findings of the Ld.CIT(A) are as under:- 5. Carefully considered th…

ACIT- Circle 15 (1)(2), Mumbai vs. G-3 Motors Limited, Navi Mumbai

In the result, appeal of the revenue is dismissed

ITA 6518/MUM/2018[2011-12]Status: DisposedITAT Mumbai06 Dec 2019AY 2011-12

Bench: Shri R.C.Sharmaa.C.I.T. Vs. M/S G-3 Motors Limited, Circle-15(1)(2), Plot No. D-175, Ttc Industrial Area, Mumbai. Midc Shiravane, Nerul, Navi Mumbai- 400705. Pan/Gir No.Aaccg 8148 E (Appellant) .. (Respondent)

Section 143(3)Section 145

…in the list beneficiaries. Accordingly, the Ld. AO treated the amount of Rs.4,60,4041- as bogus purchase and added the same to the total income of the appellant. Under similar circumstances the Hon’ble High Court of Gujarat in the case of Simit P Seth, 2013 (356 ITR 451) had on occasion to deliver its judgment by confirming the decision of the ITAT which has estimated the disallowance at 12.5% of the disputed bogus purchases to meet the end of Justice. The head- note of the decision is reproduced as under- "Section 145 of the Income-Tax Act, 1961- Method of Accounting- Estimation of Profits [ Bogus Purchase] As…

ITO 8(1)(3), Mumbai vs. M/S.Sai Samartha Casmetics Private Limited, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 6563/MUM/2018[2010-11]Status: DisposedITAT Mumbai05 Dec 2019AY 2010-11

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Bleincome Tax Officer – 8(1)(3) V. M/S. Sai Samartha Cosmetics Pvt. Ltd., Room No. 662, 6Th Floor Flat No. 402, Happy Home Plot No. 551, Tps Iii, 8Th Road Aayakar Bhavan, M.K. Road Khar (W), Mumbai – 400 052 Mumbai – 400 020 Pan: Aahcs1446G (Appellant) (Respondent) Assessee By : Shri Hiral Sampat

For Appellant: Shri Hiral SampatFor Respondent: Shri R. Bhoopathi
Section 133(6)Section 143(1)Section 147Section 69C

…elaborately with reference to the submissions of the assessee and the averments in the Assessment Order, referring to various decisions of the Coordinate Benches and also the decision of the Hon'ble Gujarat High Court in the case of the CIT v. Simit P. Sheth [356 ITR 451] restricted the disallowance to 12.5% of the non- genuine purchases while estimating the profit element @12.5%, while holding so, the Ld.CIT(A) observed as under: - “Reliance is also placed on the decision of ITAT, Mumbai in the case of Ratnagiri Stainless (P.) Ltd. Vs. Income-tax Officer, 5(3)(1), Mumbai [2017] 80 taxmann.com 265 (Mumbai - Trib.…

Income Tax Officer 15(1)(3), Mumbai vs. M/S.Bmt Industrial Machine Limited, Mumbai

In the result, the appeal is partly allowed

ITA 6542/MUM/2018[2011-12]Status: DisposedITAT Mumbai05 Dec 2019AY 2011-12

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Bleincome Tax Officer - 15(1)(3) V. M/S. Bmt Industrial Machine Ltd., 15, Neelkanth Shopping Arcade Room No. 15-B, Aayakar Bhavan 39 R.C. Marg, Chembur M.K. Road, Mumbai – 400 020 Mumbai – 400 071 Pan: Aaccb3166F (Appellant) (Respondent) Assessee By : None

For Appellant: NoneFor Respondent: Shri R. Bhoopathi
Section 143(1)Section 147

…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 the 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: - “2.4 I have given my careful consideration to the rival submissions, perused the material on record and duly considered the factual matrix of the case as also the applicable legal position. 4 M/s. BMT Industrial Machine Ltd.,…