CIT v. Simit P. Sheth

Shri Jitendra Jugraj Bokadia, Mumbai vs. Income Tax Officer 19(2)(1), Mumbai

In the result, the appeals are partly allowed

Bench: Shri Mahavir Singh () & Shri N.K. Pradhan () Assessment Year: 2009-10 & Assessment Year: 2010-11 & Assessment Year: 2011-12 Shri Jitendrajugrajbokadia, Income Tax Officer- Room No. 4, Godavari Vs. 19(2)(1), Matrumandir, Bhavan, 1St Floor, Bhandari Room No. 221, 2Nd Floor, Street, Girgaon, Mumbai- Tardeo, Mumbai-400007 400004 Pan No. Abypb8336P Appellant Respondent

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC” MUMBAI BEFORE SHRI MAHAVIR SINGH (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) Assessment Year: 2009-10 & Assessment Year: 2010-11 & Assessment Year: 2011-12 Shri JitendraJugrajBokadia, Income Tax Officer- Room No. 4, Godavari Vs. 19(2)(1), MatruMandir, Bhavan, 1st floor, Bhandari Room No. 221, 2nd floor, Street, Girgaon, Mumbai- Tardeo, Mumbai-400007 400004 PAN No. ABYPB8336P Appellant Respondent Assessee by :Mr. Neelkanth Khandelwal, AR Revenue by : Mr. Chaitanya Anjaria, DR Date of Hearing : 15/05/2019 Date of pronouncement: 24/05/2019…

Kisore Chunilal Mehta, Mumbai vs. ITO 19(2)(2), Mumbai

In the result, the appeals are partly allowed

Bench: Shri Mahavir Singh () & Shri N.K. Pradhan () Assessment Year: 2009-10 & Assessment Year: 2010-11 & Assessment Year: 2011-12 & Assessment Year: 2012-13 Kishore Chunilal Mehta, Income Tax Officer- 109, Patel Building, Shop Vs. 19(2)(2), Matrumandir, No. 2, Ardeshirdady Street, 2Nd Floor, Nana X Lane, C.P. Tank Road, Chowktardeo, Mumbai- Mumbai-400004. 400007 Pan No. Aaapm9939L Appellant Respondent

…hases of Rs.75,22,686/- made from the said parties by the assessee were not genuine. However, the AO was of the view that the intention of indulging Kishore C. Mehta the tax liability. Therefore, the AO relying on the decision in CIT v. Simit P. Sheth (2013) 356 ITR 451 (Guj) estimated the profit @ 12.5% on the disputed purchases of Rs.75,22,686/- and brought Rs.9,40,335/- to tax. 4. In appeal, the Ld. CIT(A) agreed with the reasons given by the AO and confirmed the disallowance of Rs.9,40,335/-. 5. Before us, the Ld. counsel of the assessee submits that in response to the query raised by the AO the assessee had…

ITO 19(2)(3), Mumbai vs. Mukesh C. Sanghvi, Mumbai

In the result, appeal filed by the revenue is dismissed

Bench: Shri Sandeep Gosain () & Shri G Manjunatha () Ito-19(2)(3), Mumbai Vs Shri Mukesh C Sanghvi Prop M/S Rajendra Steel & Alloys Room No.6, Ground Floor, 79, 2Nd Pathan Street, 5Th Kumbharwada Mumbai 400 004 Pan : Anzps6511Q Appellant Respondednt

…to the assessee. The Ld.CIT(A), after considering relevant submissions of the assessee and also 8 ITA 2457/Mum/2017 by relying upon various judicial precedents including the decision of Hon’ble Gujarat High Court in the case of CIT vs Simit P Sheth (2013) 356 ITR 451 (Guj) scaled down addition made by the AO towards alleged bogus purchases to 12.5% of such purchases. The relevant observations of the Ld.CIT(A) are as under:- 8.3 I have carefully considered the rival contentions on the issue on hand. On perusal of the material on record it is noticed that, in the appellant's case, Ld. AO, made independent ver…

Lalit Kumar Mangilal Jain, Mumbai vs. Income Tax Officer-17(3)(3), Mumbai

In the result, the appeals of the assessee are partly allowed

Bench: Sri Mahavir Singh, Jm & Sri Nk Pradhan, Am Aayakr Apila Sam./ Itas No. 4516 & 4518/Mum/2017 (Inaqa-Arna Baya- / Assessment Year 2009-10 & 2011-12) Shri Lalit Kumar Mangilal Jain The Income Tax Officer, 507, Sankheshwar Darshan, Ward 17(3)(3), Room No. Seth Motishaw Lane, 613, 6Th Floor, Piramal Vs. Mazgoan, Mumbai-400 010 Chembers, Parel, Mumbai: 400 012 .. (Apilaaqai- / Appellant) (P`%Yaqaai- / Respondent) स्थायी लेखा िं./Pan No. Aafpj0326H अपीलाथी की ओर े / Appellant By : Shri Rachi Rathod, Ar प्रत्यथी की ओर े / Respondent By : Shri Satischandra Rajore, Dr ुनवाई की तारीख / Date Of Hearing: 09-05-2019 घोषणा की तारीख / Date Of Pronouncement : 21-05-2019

…t 4% of ₹ 50,14,383/- to the returned income of the assessee. Aggrieved, assessee preferred the appeal before CIT(A), who confirmed the addition made by the AO by following the decision of Hon’ble Gujarat High court in the case of CIT vs. Smith P. Seth (2013) 356 ITR 451 (Guj). 6. We have considered the issue and gone through the facts and circumstances of the case. Before us, the assessee has filed copy of Tribunal order in assessee’s own case in ITA No. 4517/Mum/2017 for AY 2010-11 vide order dated 30.04.2019, wherein Tribunal has accepted the restriction of 2% net profit on the alleged bogus purchase and for…

Lalit Kumar Mangilal Jain, Mumbai vs. Income Tax Officer-17(3)(3), Mumbai

In the result, the appeals of the assessee are partly allowed

Bench: Sri Mahavir Singh, Jm & Sri Nk Pradhan, Am Aayakr Apila Sam./ Itas No. 4516 & 4518/Mum/2017 (Inaqa-Arna Baya- / Assessment Year 2009-10 & 2011-12) Shri Lalit Kumar Mangilal Jain The Income Tax Officer, 507, Sankheshwar Darshan, Ward 17(3)(3), Room No. Seth Motishaw Lane, 613, 6Th Floor, Piramal Vs. Mazgoan, Mumbai-400 010 Chembers, Parel, Mumbai: 400 012 .. (Apilaaqai- / Appellant) (P`%Yaqaai- / Respondent) स्थायी लेखा िं./Pan No. Aafpj0326H अपीलाथी की ओर े / Appellant By : Shri Rachi Rathod, Ar प्रत्यथी की ओर े / Respondent By : Shri Satischandra Rajore, Dr ुनवाई की तारीख / Date Of Hearing: 09-05-2019 घोषणा की तारीख / Date Of Pronouncement : 21-05-2019

…t 4% of ₹ 50,14,383/- to the returned income of the assessee. Aggrieved, assessee preferred the appeal before CIT(A), who confirmed the addition made by the AO by following the decision of Hon’ble Gujarat High court in the case of CIT vs. Smith P. Seth (2013) 356 ITR 451 (Guj). 6. We have considered the issue and gone through the facts and circumstances of the case. Before us, the assessee has filed copy of Tribunal order in assessee’s own case in ITA No. 4517/Mum/2017 for AY 2010-11 vide order dated 30.04.2019, wherein Tribunal has accepted the restriction of 2% net profit on the alleged bogus purchase and for…

Asst CIT 25(3), Mumbai vs. Radiant Gems, Mumbai

In the result, appeal filed by the Revenue and cross objection filed by the

Bench: Shri Sandeep Gosain & Shri G. Manjunatha, Assessment Year: 2013-14 Acit-25(3), M/S Radiant Gems, Room No.601, C-10, 6Th 701C, Gokul Divine, S.V. Road, बनाम/ Floor, Pratyakshakar Datta Wadi, Vile Parle West, Vs. Mumbai-400056 Bhavan, Bandra Kurla Complex, Bandra (East), Mumbai-400051 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No.Aajfr3662E Co No.153/Mum/2018 (Arising Out Of Ita No.4146/Mum/2017) Assessment Year: 2013-14 M/S Radiant Gems, Acit-25(3), 701C, Gokul Divine, S.V. Room No.601, C-10, 6Th Floor, बनाम/ Road, Pratyakshakar Bhavan, Bandra Vs. Datta Wadi, Vile Parle West, Kurla Complex, Bandra (East), Mumbai-400056 Mumbai-400051 ("नधा"रती /Assessee) (राज"व /Revenue) P.A. No. Aajfr3662E

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ, ‘डी’,मुंबई। IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “D”, MUMBAI "ी संद"प गोसाई , "या"यक सद"य एवं "ी जी. मंजूनाथ, लेखा सद"य, के सम" Before Shri SANDEEP GOSAIN, Judicial Member AND Shri G. MANJUNATHA, Accountant Member, Assessment Year: 2013-14 ACIT-25(3), M/s Radiant Gems, Room No.601, C-10, 6th 701C, Gokul Divine, S.V. Road, बनाम/ Floor, Pratyakshakar Datta Wadi, Vile Parle West, Vs. Mumbai-400056 Bhavan, Bandra Kurla Complex, Bandra (East), Mumbai-400051 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No.AAJFR3662E CO No.153/Mum/2018 (Arising out of ITA No.4146/Mum/2017…

Assistant Commissioner of Income Tax 15(2)(1), Mumbai vs. Jyoti Switchgears Private Limited, Mumbai

The appeal stands dismissed

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am

…on was to be restricted to account for element of profit embedded in purchases which the assessee would have made by purchasing goods from some unknown entities. Finally, following the decision of Hon’ble Gujarat High Court rendered in CIT Vs. Simit P.Sheth [356 ITR 451] & CIT Vs. Bholanath Poly Fab. P. Ltd. [355 ITR 290], the impugned additions were restricted to 12.5% of alleged bogus purchases. Aggrieved, the revenue is in further appeal before us. 4. Upon careful consideration, we are of the considered opinion that there could be no sale without actual purchase of material keeping in view the assessee’s natu…

Chaganlal Pukhraj Parmar, Mumbai vs. ITO 29(1)(2), Mumbai

The appeal stands partly allowed

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am

…purchases could not be termed as bogus purchases. Therefore, the addition was to be restricted to account for element of profit embedded in purchases. Finally, inter-alia, following the decision of Hon’ble Gujarat High Court rendered in CIT Vs. Simit P.Sheth [356 ITR 451] & CIT Vs. Bholanath Poly Fab. P. Ltd. [355 ITR 290], the impugned additions were restricted to 20% of alleged bogus purchases. Aggrieved, the assessee is in further appeal before us. 4. The Ld. AR while contesting the reassessment proceedings, pleaded for reasonable estimation whereas Ld. DR submitted that the estimation was fair & reasonable. 5…

ACIT -18(1), Mumbai vs. Chetan P. Chitalia, Mumbai

In the result, appeals are dismissed

Bench: Shri Saktijit Dey & Shri Manoj Kumar Aggarwal

…gh supporting documentary evidences, however, he was of the view that the entire non–genuine purchases could not be disallowed and added back to the income of the assessee. Relying upon the decision of the Hon’ble Gujarat High Court in CIT v/s Simit P. Sheth, 356 ITR 451 (Guj.), learned Commissioner (Appeals) held that only the profit element embedded in the non–genuine purchases can be treated as income of the assessee. Accordingly, he estimated the profit @ 12.5% on the bogus purchase in both the assessment years and directed the Assessing Officer to restrict the additions to that extent only. 4 Chetan P. Chit…

Anantrai Kar, Mumbai vs. ITO 32(1)(1), Mumbai

Bench: Shri Mahavir Singh () & Shri N.K. Pradhan () Assessment Year: 2012-13 Anantraikar, A/304, Ito-32(1)(1). Viranti Tower, Sv Road, Vs. Dahisar (E), Mumbai-68

…nce in the form of goods receipt note Anantrai Kar 3 (GRN), goods/work completion note, lorry receipts etc. with supporting documentary evidence. Therefore, 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), the AO estimated the profit @ 12.5% on the total bogus purchases of Rs.24,88,08,481/- which comes to Rs.3,11,01,060/-. 3.1 On perusal of the balance sheet the AO observed that the assessee had received unsecured loan of Rs.18,50,005/- in cash during the year. During the course of assessment proceedings, the AO asked the assessee to prove t…

Varnam Exporrts, Mumbai vs. ITO 19(3)(5), Mumbai

In the result, appeals of the assessee are partly allowed

Bench: Shri C.N. Prasad, Hon'Ble & Shri Rajesh Kumar, Hon'Ble

…ssed 10. Coming to the merits of the case, the Ld. CIT(A) considering the submissions, evidences furnished by the assessee and the averments of the Assessing Officer and following the decision of the Hon’ble Gujarat High Court in the case of Simit P. Sheth [356 ITR 451] held that only the profit element embedded in such purchases shown to have been made from the non-existing parties are to be brought to tax, accordingly Ld.CIT(A) sustained the addition of the 5% adopted by the Assessing Officer observing as under: - “6.2.14. In the instant case the ratio adopted by the Judicial pronouncement in the case of…

Varnam Exports, Mumbai vs. ITO 19(3)(5), Mumbai

In the result, appeals of the assessee are partly allowed

Bench: Shri C.N. Prasad, Hon'Ble & Shri Rajesh Kumar, Hon'Ble

…ssed 10. Coming to the merits of the case, the Ld. CIT(A) considering the submissions, evidences furnished by the assessee and the averments of the Assessing Officer and following the decision of the Hon’ble Gujarat High Court in the case of Simit P. Sheth [356 ITR 451] held that only the profit element embedded in such purchases shown to have been made from the non-existing parties are to be brought to tax, accordingly Ld.CIT(A) sustained the addition of the 5% adopted by the Assessing Officer observing as under: - “6.2.14. In the instant case the ratio adopted by the Judicial pronouncement in the case of…

Varnam Exports, Mumbai vs. ITO 19(3)(5), Mumbai

In the result, appeals of the assessee are partly allowed

Bench: Shri C.N. Prasad, Hon'Ble & Shri Rajesh Kumar, Hon'Ble

…ssed 10. Coming to the merits of the case, the Ld. CIT(A) considering the submissions, evidences furnished by the assessee and the averments of the Assessing Officer and following the decision of the Hon’ble Gujarat High Court in the case of Simit P. Sheth [356 ITR 451] held that only the profit element embedded in such purchases shown to have been made from the non-existing parties are to be brought to tax, accordingly Ld.CIT(A) sustained the addition of the 5% adopted by the Assessing Officer observing as under: - “6.2.14. In the instant case the ratio adopted by the Judicial pronouncement in the case of…

Varman Exports, Mumbai vs. ITO 19(3)(5), Mumbai

In the result, appeals of the assessee are partly allowed

Bench: Shri C.N. Prasad, Hon'Ble & Shri Rajesh Kumar, Hon'Ble

…ssed 10. Coming to the merits of the case, the Ld. CIT(A) considering the submissions, evidences furnished by the assessee and the averments of the Assessing Officer and following the decision of the Hon’ble Gujarat High Court in the case of Simit P. Sheth [356 ITR 451] held that only the profit element embedded in such purchases shown to have been made from the non-existing parties are to be brought to tax, accordingly Ld.CIT(A) sustained the addition of the 5% adopted by the Assessing Officer observing as under: - “6.2.14. In the instant case the ratio adopted by the Judicial pronouncement in the case of…

Varnam Exports, Mumbai vs. ITO 19(3)(5), Mumbai

In the result, appeals of the assessee are partly allowed

Bench: Shri C.N. Prasad, Hon'Ble & Shri Rajesh Kumar, Hon'Ble

…ssed 10. Coming to the merits of the case, the Ld. CIT(A) considering the submissions, evidences furnished by the assessee and the averments of the Assessing Officer and following the decision of the Hon’ble Gujarat High Court in the case of Simit P. Sheth [356 ITR 451] held that only the profit element embedded in such purchases shown to have been made from the non-existing parties are to be brought to tax, accordingly Ld.CIT(A) sustained the addition of the 5% adopted by the Assessing Officer observing as under: - “6.2.14. In the instant case the ratio adopted by the Judicial pronouncement in the case of…

Shri Rameshkumar Daulatraj Mehta, Mumbai vs. Income Tax Officer-19(3)(1), Mumbai

In the result, the appeal of assessee is partly allowed

Bench: Sri Mahavir Singh, Jm & Sri Nk Pradhan, Am Aayakr Apila Sam./ Ita No. 4192/Mum/2018 (Inaqa-Arna Baya- / Assessment Year 2011-12) Shri Rameshkumar Daulatraj The Income Tax Officer, Mehta Ward-19(3)(1) Room No. 6-A, 28/30, Dr. Room No. 219, 2Nd Floor, Vs. Wilson Street, V.P. Road, Matru Mandir, Tardeo Road, Mumbai-400 004 Mumbai-400 007 .. (Apilaaqai- / Appellant) (P`%Yaqaai- / Respondent) स्थायी लेखा िं./Pan No. Abwpm8850F अपीलाथी की ओर े / Appellant By : Shri Neelkanth Khandelwal, Ar प्रत्यथी की ओर े / Respondent By : Shri Chaitanya Anjaria, Dr ुनवाई की तारीख / Date Of Hearing: 07-05-2019 घोषणा की तारीख / Date Of Pronouncement : 07-05-2019

…the returned income of the assessee. Aggrieved, assessee preferred the appeal before CIT(A), who confirmed the addition made by the AO by observing in para 5.7 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: - “5.7. Even if materials have been purchased, they are not purchased form these parties and may be in cash from un-disclosed parties. By purchasing from the grey market, the appellant would have benefitted by the savings of taxes. Therefore, in fact and circumstances of the case, in this particular case, it is consi…

Shree Govind Silk Mills Pvt. Ltd., Mumbai vs. ITO 4(3)(4), Mumbai

In the result, appeals of the assessee are partly allowed

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

…x but only the profit element embedded therein. The Hon'ble High Court confirmed the order of the ITAT in estimating the profit element from purchases at 12.5%. Similar view has been taken by the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth [356 ITR 451] and confirmed the order of the ITAT in estimating the profit element from the purchases at 12.5%. The Bombay High Court in the case of CIT v. Nikunj Eximp [216 Taxman.com 171] held that simply because the parties were not produced the entire purchases cannot be added. 8. The case law relied on by the Ld. DR in the case of Shoreline Hotel (P.) L…

Shree Govind Silk Mills Pvt. Ltd., Mumbai vs. Room No. 637, 6Th Floor, Aayakar Bhavan, M.Kroad, Mumbai

In the result, appeals of the assessee are partly allowed

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

…x but only the profit element embedded therein. The Hon'ble High Court confirmed the order of the ITAT in estimating the profit element from purchases at 12.5%. Similar view has been taken by the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth [356 ITR 451] and confirmed the order of the ITAT in estimating the profit element from the purchases at 12.5%. The Bombay High Court in the case of CIT v. Nikunj Eximp [216 Taxman.com 171] held that simply because the parties were not produced the entire purchases cannot be added. 8. The case law relied on by the Ld. DR in the case of Shoreline Hotel (P.) L…

Shree Govind Silk Mills Pvt. Ltd., Mumbai vs. ITO 4(3)(4), Mumbai

In the result, appeals of the assessee are partly allowed

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

…x but only the profit element embedded therein. The Hon'ble High Court confirmed the order of the ITAT in estimating the profit element from purchases at 12.5%. Similar view has been taken by the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth [356 ITR 451] and confirmed the order of the ITAT in estimating the profit element from the purchases at 12.5%. The Bombay High Court in the case of CIT v. Nikunj Eximp [216 Taxman.com 171] held that simply because the parties were not produced the entire purchases cannot be added. 8. The case law relied on by the Ld. DR in the case of Shoreline Hotel (P.) L…