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 367,514 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

Jt. CIT -(OSD), CC- 6(3), Mumbai vs. Krosslink Infrastructure Ltd., Mumbai

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

ITA 3122/MUM/2018[2005-06]Status: DisposedITAT Mumbai05 Dec 2019AY 2005-06

Bench: Shri Shamim Yahya & Shri Pawan Singhjcit (Osd), Central Circle-6(3) M/S Krosslink Infrastructure Room No. 1926, 19Th Floor, Ltd., 507/511, Vypar Bhavan, Air India Building, Vs. 49, P.D. Mellor Road, Nariman Point, Carnac Bunder, Mumbai-400021 Mumbai-400009 Pan: Aabck2801R Appellant Respondent

For Appellant: Shri J.P. Bairagra with Shri S.K. Mutsaddi (AR)For Respondent: Shri B. Srinivas (CIT-DR)
Section 115JSection 132Section 133ASection 148Section 2(24)Section 254(1)

…ases of ₹ 75.29 crores. The learned CIT(A) is while restricting the addition to the extent of 30% followed the decision of Hon’ble Gujarat High Court in case of Vijay Proteins Ltd. V/s CIT (2015) 58 Taxmann.com 44 Gujarat and CIT V/s Simith P. Sheth (2013) 356 ITR 451 (Guj). Therefore, aggrieved by the decision of ld. CIT(A) both the parties have filed their respective appeals raising the grounds of appeal as we have recorded above. In addition to filing appeal, the assessee has also filed Cross Objections in the appeal filed by the revenue. 15. Perusal of record reveals that there is delay of 10 days in fi…

DCIT 19(1), Mumbai vs. Excelsior Motor and Electric Mechanic Works, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 6512/MUM/2018[2012-13]Status: DisposedITAT Mumbai04 Dec 2019AY 2012-13

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Bledy. Commissioner Of Income-Tax – 19(1) M/S. Excelsior Motor & Electric V. Room No. 203, 2Nd Floor Mechanic Works Ground Floor, Purshottam Building Matru Mandir, Tardev Road J.S.S. Road, Opera House Mumbai – 400 007 Mumbai – 400 007 Pan: Aaafe0614N (Assessee) (Respondent) Assessee By : Shri Mandar Vaidya

For Appellant: Shri Mandar VaidyaFor Respondent: Shri R. Bhoopathi
Section 143(1)

…the decisions of the Ld.CIT(A) in assessee’s preceding A.Ys. 2009-10, A.Y.2010-11 & A.Y.2011-12, estimated the Gross Profit element from such purchases at 12.5% following the decision of the Hon'ble Gujarat High Court in the case of the CIT v. Simit P. Sheth [356 ITR 451], against which the Revenue is in appeal. 4. Ld. DR vehemently supported the order of the Assessing Officer. 5. We have heard the rival submissions, perused the orders of the authorities below. On a perusal of the order of the Ld.CIT(A), we find that the Ld.CIT(A) considered this aspect of the matter elaborately with reference to the submission…

ITO 27(2)(1), Mumbai vs. M/S.K.L.Industries, Mumbai

In the result, appeal of the revenue is dismissed

ITA 5961/MUM/2018[2009-10]Status: DisposedITAT Mumbai04 Dec 2019AY 2009-10

Bench: Shri Shamim Yahya (Am) & Shri Pawan Singh (Jm) Ito 27(2)(1), Mumbai Vs M/S K.L. Industries 1001-B, Vikhroli (W) Mumbai 400 083 Pan : Aafk2680A Appellant Respondednt

Section 143(1)Section 143(2)Section 147Section 148

…12.07% to 16.41%. The Ld. CIT(A) accordingly restricted the addition to the extent of 15% of such alleged bogus purchases being the profit element embedded in such purchases, by relying upon the decision of Hon’ble Gujarat High Court in CIT vs Simit P Sheth 356 ITR 451 (Guj). Aggrieved by the order of ld. CIT(A), the revenue has filed the present appeal before us. 5. None appeared on behalf of the assessee before us. The notice of hearing sent by RPAD has been returned by the postal authorities with the remark, “left”. Therefore, we are left with no alternative but to hear the Ld. DR for the revenue and dispos…

Prabhuram V. Prajapati, Mumbai vs. ITO - 19(2)(5), Mumbai

In the result the appeal of the

ITA 5956/MUM/2018[2009-10]Status: DisposedITAT Mumbai04 Dec 2019AY 2009-10

Bench: Shri Shamim Yahya (Am) & Shri Pawan Singh (Jm)

Section 143(1)Section 143(2)Section 147Section 148

…see failed to furnish evidence such as, delivery challans, transportation details, etc. to substantiate his claim of purchases from aforesaid parties. Therefore, by relying upon the judgments of Hon’ble Gujarat High Court in the case of CIT vs Simit P Sheth ( 356 ITR 451(Guj) and in the case of M/s Bholanath Poly Fab P Ltd (355ITR 290), the assessing officer, made addition of 12.5% of the amount of alleged bogus purchases to the total income. 4. On appeal, the ld. CIT(A) confirmed the addition. Aggrieved by the order of ld. CIT(A), the assessee has filed the present appeal before us. 4 ITA 5956 & 5957/Mum/201…

Income Tax Officer Ward 32(1)(4), Mumbai vs. Shri Dharmesh D Modi, Mumbai

In the result, appeal of the revenue is dismissed

ITA 5836/MUM/2018[2011-12]Status: DisposedITAT Mumbai04 Dec 2019AY 2011-12

Bench: Shri Shamim Yahya, Accountant & Shri Pawan Singh (Jm) Ito Ward-32(1)(4), Shri Dharmesh D. Modi, C-11, 2Nd Floor, Room No. B-106, Shri Krupa Chs Ltd. 5Th Kasturba Road, Borivali 202, Pratyakshakar Bhavan, V/S Bkc, Bandra (East), (E), Mumbai-400066 Mumbai-400051 Pan : Aaepm0995L Appellant Respondednt

Section 133(6)Section 142(1)Section 143(1)Section 147Section 148

…e balance to the purchase party. The purchases shown by assessee are unverifiable and there is possibility of revenue leakage. The Assessing Officer rejected the books of account and on the basis of decision of Hon’ble Gujarat High Court in Simith P. Sheth 356 ITR 451 (Guj.) estimated Gross Profit at 15% and accordingly, disallowed 15% of the impugned/alleged bogus purchases, while passing the assessment order on 22.01.2016 under section 143(3) r.w.s. 147. On appeal, the Ld. CIT(A) reduced/ restricted the addition to the extent of 5% of the transactions covered by 5 ITA 5836 to 5838 Mum 2018-Shri Dharmesh D…

Mahavir Metal, Mumbai vs. ACIT, Circle - 19 (3), Mumbai

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

ITA 6102/MUM/2018[2008-09]Status: DisposedITAT Mumbai02 Dec 2019AY 2008-09

Bench: Shri Saktijit Dey & Shri G. Manjunathamahavir Metal Vs. Acit,Circle-19(3) 6Th Jaikunwar Bhavan Matrumandir, Tardeo Road Khetwadi, 8Th Lane Mumbai-400 007 Mumbai-400 004 Pan/Gir No.Aaifs6733N 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) confirmed 12.50% profit rate adopted by the AO, but in respect of total purchases, he had adopted an amount of Rs. 2,00,43,739/- and on which applied 12.50% profit, which resulated in enhancement of total addition towards alleged bogus purchases to Rs. 25,05,467/-. The relevant findings of the Ld.CIT(A) are as under:- 4.3.5 In view of the facts…

Rational Art & Press P. Ltd, Mumbai vs. DCIT Cen Cir 8(1), Mumbai

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

ITA 5897/MUM/2018[2009-10]Status: DisposedITAT Mumbai02 Dec 2019AY 2009-10

Bench: Shri Saktijit Dey & Shri G. Manjunatharational Art & Press Pvt.Ltd. Vs. Dcit, Central Circle-8(1) 21St Floor, Nirmal Building Room No.656, 6Th Floor Nariman Point Aaykar Bhawan, M.K.Road Mumbai-400 021 Mumbai-400 020

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

…and 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…

ITO 28(3)(3), Mumbai vs. Sanjay R. Mehta - HUF, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 6256/MUM/2018[2009-10]Status: DisposedITAT Mumbai02 Dec 2019AY 2009-10

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Bleincome Tax Officer V. Shri Sanjay R. Mehta-Huf Ward – 28(3)(3) Row House, Plot No. 45 Room No. 319, 3Rd Floor, Tower No. 6 Sector -5, Kopar Khairane Vashi Rly. Station Complex Navi Mumbai – 400 703 Vashi, Navi Mumbai – 400 703 Pan: Aajhs7692M (Assessee) (Respondent) Assessee By : None

For Appellant: NoneFor Respondent: Shri R. Bhoopathi
Section 133(6)Section 143(1)Section 147

…ed this aspect of the matter elaborately with reference to the submissions of the assessee and the averments in the Assessment 4 Shri Sanjay R. Mehta-HUF 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: - “5.3 I have considered the facts of the case and the appellant's submissions. Notices u/s 133(6) of the Act issued to the impugned parties were returned unserved by the postal authorities with the remark 'left/not known". The a…

M/S.Intermetal Engineer (India) Private Limited, Mumbai vs. ACIT 12(2)(2), Mumbai

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

ITA 6576/MUM/2018[2010-11]Status: DisposedITAT Mumbai29 Nov 2019AY 2010-11

Bench: Sri Mahavir Singh, Jm & Sri Waseem Ahmed, Am आयकर अपील सुं./ Ita No. 6576/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2010-11) Intermetal Engineer (India) The Asst. Commissioner Of Private Limited Income Tax, 22, Noble Industrial Estate Circle 12(2)(2), Aayakar बनाम/ No.1, Navghar, Vasai (E), Bhavan, M.K. Road, Mumbai Vs. Thane-4012010 (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) स्र्थायी लेखा सुं./Pan No. Aaaci7320J अपीलार्थी की ओर े / Appellant By : Shri Haridas Bhatt, Ar प्रत्यर्थी की ओर े / Respondent By : Shri Kumar Padampani Bora, Dr ुिवाई की तारीख / Date Of Hearing: 14.11.2019 घोर्णा की तारीख / Date Of Pronouncement : 29.11.2019

For Appellant: Shri Haridas Bhatt, ARFor Respondent: Shri Kumar Padampani Bora, DR
Section 143(3)

…Hence, we are of the view that only 5 | P a g e 6576/Mum/2018 Intermetal Engineer (India) P. Ltd. alternative left is that a reasonable profit can be estimated in view of the decision of Hon’ble Gujarat High court in the case of CIT vs. Smith P. Seth (2013) 356 ITR 451 (Guj). Hence, we direct the AO to recompute the income after applying profit rate at the rate of 12.5% and compute the income accordingly. 6. In the result, the appeal of the assessee is partly allowed. Order pronounced in the open court on 29.11.2019 (व ीम अहमद / WASEEM AHMED) (महावीर स िंह /MAHAVIR SINGH) (लेखा दस्य / ACCOUNTANT MEMBER) (न्यायय…

Mehta Steel House, Mumbai vs. ITO 19 (2)(3), Mumbai

In the result, the appeal is allowed for statistical purposes

ITA 6323/MUM/2018[2010-11]Status: DisposedITAT Mumbai29 Nov 2019AY 2010-11

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2010-11 Mehta Steel House, 47, Old Ito-19(2)(3), Matru Mandir, Sonawala Building, C P Tank Vs. Tardeo Road, Aayakar Bhavan, Road, Mumbai-400004. Mumbai.

For Appellant: Ms. Neha Paranjpe, ARFor Respondent: Smt. Jothilakshmi Nayak, Sr. DR
Section 133(6)Section 143(1)Section 143(3)Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC” MUMBAI BEFORE SHRI SAKTIJIT DEY (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) Assessment Year: 2010-11 Mehta Steel House, 47, Old ITO-19(2)(3), Matru Mandir, Sonawala Building, C P Tank Vs. Tardeo Road, Aayakar Bhavan, Road, Mumbai-400004. Mumbai. PAN No. AAHFM0878R Appellant Respondent Assessee by : Ms. Neha Paranjpe, AR Revenue by : Smt. Jothilakshmi Nayak, Sr. DR Date of Hearing : 27/11/2019 Date of pronouncement : 29/11/2019 ORDER PER N.K. PRADHAN, A.M. This is an appeal filed by the assessee. The relevant assessment year is 2010-11.…

Popatlal Nathalal Shah, Mumbai vs. Assistant Commissioner of Income Tax 19(2), Mumbai

In the result, the appeal of the assessee is dismissed

ITA 6029/MUM/2018[2014-15]Status: DisposedITAT Mumbai29 Nov 2019AY 2014-15

Bench: Sri Mahavir Singh, Jm & Sri Waseem Ahmed, Am आयकर अपील सुं./ Ita No. 6029/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2014-15) Popatlal Nathalal Shah The Asst. Commissioner Of Gw-7022, ‘G’ Tower, Bandra- Income, बनाम/ Kurla Complex, Bandra (E), 19(2), Income Tax Office, Vs. Mumbai-400 051 Matrumandir, Tardeo (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) स्र्थायी लेखा सुं./Pan No. Aaafp0468K अपीलार्थी की ओर े / Appellant By : Smt. Arti Vissanji, Ar प्रत्यर्थी की ओर े / Respondent By : Shri Kumar Padampani Bora, Dr ुिवाई की तारीख / Date Of Hearing: 14.11.2019 घोर्णा की तारीख / Date Of Pronouncement : 29.11.2019 आदेश / O R D E R

For Appellant: Smt. Arti Vissanji, ARFor Respondent: Shri Kumar Padampani Bora, DR
Section 133(6)Section 143(3)

…e return income of the assessee. 5. Aggrieved, assessee preferred the appeal before CIT(A), who restrict the disallowance at the rate of 3% of the bogus purchases by observing in Para 6.14 by following the decision in the case of CIT vs. Smith P. Seth (2013) 356 ITR 451 (Guj) by observing as under: - “6.14 Thus it is seen that the facts of the instant case are completely different and distinct then the facts of the case relied upon by the AO to estimate the profit margin at 100% of such purchases. While deciding the profit element embedded in the bogus purchase cases, Gujarat High Court adopted the profit @ 12.…

DCIT 15(2)(2), Mumbai vs. Indocen Electronic System P.Ltd, Navi Mumbai

In the result, both, the appeals are dismissed

ITA 5845/MUM/2018[2009-10]Status: DisposedITAT Mumbai29 Nov 2019AY 2009-10

Bench: Sri Mahavir Singh, Jm & Sri Waseem Ahmed, Am आयकर अपील सुं./ Ita No. 4345/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2009-10) Indocen Electronic System The Asst. Commissioner Of Private Limited Income Tax-15(2)(2), 403-409, A Wing, Great Room No.357, 3Rd Floor, बनाम/ Eastern Summit A, Plot No.56, Aayakar Bhavan, M.K. Road, Vs. Sector-15, Cbd Belapur, Navi Mumbai-400 020 Mumbai-400 614 (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) स्र्थायी लेखा सुं./Pan No. Aaaci13124N आयकर अपील सुं./ Ita No. 5845/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2009-10) The Asst. Commissioner Of Indocen Electronic System Income Tax-15(2)(2), Private Limited Room No.357, 3Rd Floor, 403-409, A Wing, Great Aayakar Bhavan, M.K. Road, बनाम/ Eastern Summit A, Plot Mumbai-400 020 No.56, Sector-15, Cbd Vs. Belapur, Navi Mumbai-400 614 (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) अपीलार्थी की ओर े / Appellant By : Shri Ashok Puri, Ar प्रत्यर्थी की ओर े / Respondent By : Shri Padampani Bora, Dr ुिवाई की तारीख / Date Of Hearing: 14.11.2019 घोर्णा की तारीख / Date Of Pronouncement : 29.11.2019

For Appellant: Shri Ashok Puri, ARFor Respondent: Shri Padampani Bora, DR
Section 143(3)Section 154

…which seems to be a clerical mistake, but later, the mistake has been rectified vide order dated 12.06.2018 under section 154 of the Act) of the bogus purchases by observing in Para 2.4.1.1 by following the decision in the case of CIT vs. Smith P. Seth (2013) 356 ITR 451 (Guj) by observing as under: - “………………………………….. 4 | P a g e 4345 & 5845/Mum/18 I am of the opinion that the facts and circumstances of the case are more akin to the case decided by the Hon’ble Gujarat High court in the case of Smit P Seth (Supra). Therefore, I hereby confirm the disallowance to the extent of 12.5% amounting to ₹ 90,598/- of th…

ITO 29(2)(3), Mumbai vs. Shri Mahasukha Mansukhlal Mehta, Mumbai

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

ITA 5555/MUM/2018[2009-10]Status: DisposedITAT Mumbai29 Nov 2019AY 2009-10

Bench: Shri S. Rifaur Rahman (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2009-10 The Ito 29(2)(3), Shri Mahasukha Mansukhlal Bldg. No. C-10, 2Nd Floor, Mehta, Room No. 204, Pratyakshakar 208, Supashwa, Nahur Road, Bhavan, Bandra Kurla Complex, Vs. Mulund (West), Bandra (East), Mumbai - 400080 Mumbai - 400051 Pan: Aaupm0175G (Appellant) (Respondent) Revenue By : Shri Akhtar H. Ansari (Dr) Assessee By : None Date Of Hearing: 11/11/2019 Date Of Pronouncement: 29/11/2019

For Appellant: NoneFor Respondent: Shri Akhtar H. Ansari (DR)
Section 133(6)Section 139(1)Section 143(2)Section 143(3)Section 148

…8% of the total amount of bogus purchases. Assessment Year: 2009-10 7. The Ld CIT(A) has restricted the addition to 12.5%, basically on the ground that the addition of 18% amount of bogus purchases is on much higher side. In the case of CIT vs. Simit P. Seth 356 ITR 451(Guj), the Hon’ble Gujrat High Court has upheld the decision of the Tribunal and sustained the addition of 12.5% of the total amount of bogus purchases determined by the Tribunal, holding that only profit element embedded in such purchases can be added to income of the assessee. Hence, in our considered view, the order passed by the Ld. CIT(A) is…

Mr.Punit Malhotra, Mumbai vs. Income Tax Officer Ward 17(2)5, Mumbai

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

ITA 5537/MUM/2018[2010-11]Status: DisposedITAT Mumbai29 Nov 2019AY 2010-11

Bench: Shri S. Rifaur Rahman (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2010-11 Mr. Punit Malhotra, The Income Tax Officer, Punit Sales Corporation, 39/43, Ward 17(2) 5, 3Rd Floor, M.K. Marg, Churchgate, Aayakar Bhavan, 1St Floor, Mumbai - 400020 Vs. M.K. Marg, Churchgate, Pan: Agipm0375L Mumbai - 400020 (Appellant) (Respondent) Assessee By : Shri J.P. Purohit (Ar) Revenue By : Shri Akhtar H. Ansari (Dr) Date Of Hearing: 11/11/2019 Date Of Pronouncement: 29/11/2019

For Appellant: Shri J.P. Purohit (AR)For Respondent: Shri Akhtar H. Ansari (DR)
Section 143Section 143(2)Section 143(3)Section 148

…n basis considering the applicable rate of VAT or other taxes and the profit embedded in the said transaction. However, the AO made addition of the total amount of bogus purchases, which was confirmed by the Ld. CIT(A). 7. In the case of CIT vs. Simit P. Seth 356 ITR 451(Guj), the Hon’ble Gujrat High Court has upheld the decision of the Tribunal and sustained the addition of 12.5% of the total amount of bogus purchases determined by the Tribunal, holding that only profit element embedded in such purchases can be added to Assessment Year: 2010-11 income of the assessee. Hence, in our considered view, the order pas…

ITO 17 (1)(1), Mumbai vs. Acme Tools Centre, Mumbai

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

ITA 5520/MUM/2018[2010-11]Status: DisposedITAT Mumbai29 Nov 2019AY 2010-11

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

Section 143(3)Section 147Section 148

…ous High Courts and Tribunals had considered an identical issue in light of investigation carried out by the Sales Tax Department and held that in case 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…

Navratna Metal Corporation, Mumbai vs. Income Tax Officer Ward 19(2)(4), Mumbai

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

ITA 5517/MUM/2018[2010-11]Status: DisposedITAT Mumbai29 Nov 2019AY 2010-11

Bench: Shri S. Rifaur Rahman (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2010-11 Navratna Metal Corporation, The Income Tax Officer-Wd 79, Nanubhai Desai Road, 19(2)(4), Prembai Bhawan, Shop No.-2, Matru Mandir, I. Tax Offices, Gr. Floor, Vs. Room No. 217, Mumbai – 400004 Opp. Bhatia Hospital, Pan : Aaafn3133H Mumbai - 400007 (Appellant) (Respondent) Assessee By : Shri Milapchand M. Kanungo (Ar) Revenue By : Shri Akhtar H. Ansari (Dr) Date Of Hearing: 11/11/2019 Date Of Pronouncement: 29/11/2019

For Appellant: Shri Milapchand M. Kanungo (AR)For Respondent: Shri Akhtar H. Ansari (DR)
Section 139(1)Section 143Section 143(2)Section 148

…s sustained the addition of 12.5%, holding that the estimate reached at by the AO is just and reasonable. 7. The Ld CIT(A) has sustained addition to 12.5%, by following the ratio laid down by the Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Seth 356 ITR 451(Guj), in which the Hon’ble High Court has upheld the decision of the Tribunal and sustained the addition 12.5% of the total amount of bogus purchases determined by the Tribunal, holding that only profit element embedded in such purchases can be added to income of the assessee. Hence, in our considered view, the order passed by the Ld. CIT(A) is b…

Mahesh R. Kadakia, Mumbai vs. ITO 19 (2)(3), Mumbai

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

ITA 5479/MUM/2018[2009-10]Status: DisposedITAT Mumbai29 Nov 2019AY 2009-10

Bench: Shri S. Rifaur Rahman (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2009-10 Shri Mahesh R. Kadakia, The Ito 19(2)(3), 244, F-Wing, Sidesh Jyoti Tower, 2Nd Floor, Matru Mandir, Balaram Tower, Grant Road (E), Opp. Bhatia Hospital, Mumbai - 400004 Vs. Pan: Aaepk4491R (Appellant) (Respondent) Assessee By : Shri Mahesh R. Kadakia (Ar) Revenue By : Shri Akhtar H. Ansari (Dr) Date Of Hearing: 11/11/2019 Date Of Pronouncement: 29/11/2019

For Appellant: Shri Mahesh R. Kadakia (AR)For Respondent: Shri Akhtar H. Ansari (DR)
Section 143(2)Section 144Section 148

…s sustained the addition of 12.5%, holding that the estimate reached at by the AO is just and reasonable. 7. The Ld CIT(A) has sustained addition to 12.5%, by following the ratio laid down by the Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Seth 356 ITR 451(Guj), in which the Hon’ble High Court has upheld the decision of the Tribunal and sustained the addition 12.5% of the total amount of bogus purchases determined by the Tribunal, holding that only profit element embedded in such purchases can be added to income of the assessee. Hence, in our considered view, the order passed by the Ld. CIT(A) is b…

Indocen Electronic System P.Ltd, Navi Mumbai vs. ACIT 15(2)(2), Mumbai

In the result, both, the appeals are dismissed

ITA 4345/MUM/2018[2009-10]Status: DisposedITAT Mumbai29 Nov 2019AY 2009-10

Bench: Sri Mahavir Singh, Jm & Sri Waseem Ahmed, Am आयकर अपील सुं./ Ita No. 4345/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2009-10) Indocen Electronic System The Asst. Commissioner Of Private Limited Income Tax-15(2)(2), 403-409, A Wing, Great Room No.357, 3Rd Floor, बनाम/ Eastern Summit A, Plot No.56, Aayakar Bhavan, M.K. Road, Vs. Sector-15, Cbd Belapur, Navi Mumbai-400 020 Mumbai-400 614 (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) स्र्थायी लेखा सुं./Pan No. Aaaci13124N आयकर अपील सुं./ Ita No. 5845/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2009-10) The Asst. Commissioner Of Indocen Electronic System Income Tax-15(2)(2), Private Limited Room No.357, 3Rd Floor, 403-409, A Wing, Great Aayakar Bhavan, M.K. Road, बनाम/ Eastern Summit A, Plot Mumbai-400 020 No.56, Sector-15, Cbd Vs. Belapur, Navi Mumbai-400 614 (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) अपीलार्थी की ओर े / Appellant By : Shri Ashok Puri, Ar प्रत्यर्थी की ओर े / Respondent By : Shri Padampani Bora, Dr ुिवाई की तारीख / Date Of Hearing: 14.11.2019 घोर्णा की तारीख / Date Of Pronouncement : 29.11.2019

For Appellant: Shri Ashok Puri, ARFor Respondent: Shri Padampani Bora, DR
Section 143(3)Section 154

…which seems to be a clerical mistake, but later, the mistake has been rectified vide order dated 12.06.2018 under section 154 of the Act) of the bogus purchases by observing in Para 2.4.1.1 by following the decision in the case of CIT vs. Smith P. Seth (2013) 356 ITR 451 (Guj) by observing as under: - “………………………………….. 4 | P a g e 4345 & 5845/Mum/18 I am of the opinion that the facts and circumstances of the case are more akin to the case decided by the Hon’ble Gujarat High court in the case of Smit P Seth (Supra). Therefore, I hereby confirm the disallowance to the extent of 12.5% amounting to ₹ 90,598/- of th…

Tulsiani Sumer Associates, Mumbai vs. ACIT Cen Cir 36, Mumbai

In the result, both, the appeal of the assessee are partly allowed

ITA 121/MUM/2018[2012-13]Status: DisposedITAT Mumbai29 Nov 2019AY 2012-13

Bench: Sri Mahavir Singh, Jm & Sri Waseem Ahmed, Am आयकर अपील सुं./ Ita No. 120/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2011-12) आयकर अपील सुं./ Ita No. 121/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2012-13) M/S Tulsiani Sumer The Dy. Commissioner Of Associates Income Tax, Central Circle 1103, Tulsiani Chambers, 5(3), बनाम/ 212, Nariman Point, Air India Building, 19 Th Floor, Vs. Mumbai-400 021 Nariman Point, Mumbai-400 021 (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) स्र्थायी लेखा सुं./Pan No. Aaaft5527B अपीलार्थी की ओर े / Appellant By : Ms. Arati Vissanji, Ar प्रत्यर्थी की ओर े / Respondent By : Shri Amit Pratap Singh, Dr ुिवाई की तारीख / Date Of Hearing: 14.11.2019 घोर्णा की तारीख / Date Of Pronouncement : 29.11.2019 आदेश / O R D E R

For Appellant: Ms. Arati Vissanji, ARFor Respondent: Shri Amit Pratap Singh, DR
Section 143(3)

…ps for verification of the AO or could not produce the parties. Hence, we are of the view that only alternative left is that a reasonable profit can be estimated in view of the decision of Hon’ble Gujarat High court in the case of CIT vs. Smith P. Seth (2013) 356 ITR 451 (Guj). Hence, we direct the AO to recompute the 6 | P a g e 120 & 121/Mum/2018 Tulsiani Sumer Associates income after applying profit rate at the rate of 12.5% and compute the income accordingly. 6. As the facts and circumstances are exactly identical in AY 2012-13 and respectfully following the earlier year decision, we direct the AO to recomput…

Tulsiani Sumer Associates, Mumbai vs. ACIT Cen Cir 36, Mumbai

In the result, both, the appeal of the assessee are partly allowed

ITA 120/MUM/2018[2011-12]Status: DisposedITAT Mumbai29 Nov 2019AY 2011-12

Bench: Sri Mahavir Singh, Jm & Sri Waseem Ahmed, Am आयकर अपील सुं./ Ita No. 120/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2011-12) आयकर अपील सुं./ Ita No. 121/Mum/2018 (यिर्ाारण वर्ा / Assessment Year 2012-13) M/S Tulsiani Sumer The Dy. Commissioner Of Associates Income Tax, Central Circle 1103, Tulsiani Chambers, 5(3), बनाम/ 212, Nariman Point, Air India Building, 19 Th Floor, Vs. Mumbai-400 021 Nariman Point, Mumbai-400 021 (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) स्र्थायी लेखा सुं./Pan No. Aaaft5527B अपीलार्थी की ओर े / Appellant By : Ms. Arati Vissanji, Ar प्रत्यर्थी की ओर े / Respondent By : Shri Amit Pratap Singh, Dr ुिवाई की तारीख / Date Of Hearing: 14.11.2019 घोर्णा की तारीख / Date Of Pronouncement : 29.11.2019 आदेश / O R D E R

For Appellant: Ms. Arati Vissanji, ARFor Respondent: Shri Amit Pratap Singh, DR
Section 143(3)

…ps for verification of the AO or could not produce the parties. Hence, we are of the view that only alternative left is that a reasonable profit can be estimated in view of the decision of Hon’ble Gujarat High court in the case of CIT vs. Smith P. Seth (2013) 356 ITR 451 (Guj). Hence, we direct the AO to recompute the 6 | P a g e 120 & 121/Mum/2018 Tulsiani Sumer Associates income after applying profit rate at the rate of 12.5% and compute the income accordingly. 6. As the facts and circumstances are exactly identical in AY 2012-13 and respectfully following the earlier year decision, we direct the AO to recomput…