CIT v. Simit P. Sheth

ITO 15(3)(1), Mumbai vs. Rossari Biotech .Ltd, Mumbai

In the result, departmental appeal is dismissed

Bench: D.T. Garasia & Shri G. Manjunathaassessment Year: 2010-11 Ito – 15(3)-1, M/S. Rossari Biotech Pvt. Ltd., Room No.456, 4Th Floor, 201-A & B, Ackruti Corporate Aayakar Bhavan, Park, M.K. Road, Vs. Lbs Marg, Mumbai – 400 020 Next To Ge Gardens, Kanjurmarg (West), Mumbai – 400 078 Pan: Aaecr 4325G (Appellant) (Respondent)

…ancy as well as of taxation laws that profit from business cannot be ascertained without deducting cost of purchase from sales. Estimation of profit ranging from 12.5% to 15% has been upheld by the Hon'ble Gujarat High Court in the case of IT vs Simit P Sheth 356 ITR 451 (Guj.). Respectfully following the decision of Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth 38 taxman 385 (Guj), we dismiss the departmental appeal. 5. In the result, departmental appeal is dismissed. CO No.181/M/2017 (Revenue’s assessee) 6. During the course of hearing, the assessee has not pressed for the cross objection a…

Poonam Skyline Construction, Mumbai vs. Jt. CIT 12(1), Mumbai

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

Bench: Shri Rajendra, Am & Shri Ram Lal Negi, Jm आयकर अपील सं./I.T.A. No.2928/Mum/2016 (धििाारण वर्ा / Assessment Year: 2011-12) Poonam Skyline Construction Jt. Cit, Range 12(1), 66/B, 3Rd Floor, Podar Chambers, Mumbai बिाम/ Mumbai Samachar Marg, Fort, Vs. Mumbai-400 001 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aahfp 4019 R (अपीलाथी /Appellant) (प्रत्यथी / Respondent) : अपीलाथी की ओर से / Appellant By : Shri Rahul Sarda प्रत्यथी की ओर से/Respondent By : Shri Saurabhkumar Rai सुनवाई की तारीख / : 01.08.2017 Date Of Hearing घोषणा की तारीख / : 15.09.2017 Date Of Pronouncement आदेश / O R D E R Per Ram Lal Negi, Jm The Assessee Has Filed The Present Appeal Against The Order Dated 24.2.2016 Passed By The Ld. Cit(A)-28, Mumbai Whereby The Ld. Cit(A) Has Partly Allowed The Appeal Filed By The Appellant-Assessee Against The Assessment Order Passed U/S. 143(3) Of The Income Tax Act, 1961 (‘The Act’ In Short). 2. Brief Facts Of The Case Are That The Assessee Engaged In The Business Of Development Of Property Filed Its Return Of Income For The Assessment Year Under Consideration Declaring The Total Income Of Rs.5,01,42,080/-. The Return Was Processed U/S. 143(3) Of The Act. The Case Was Selected For Scrutiny.

…आयकर अपीलीय अधिकरण “आई” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE SHRI RAJENDRA, AM AND SHRI RAM LAL NEGI, JM आयकर अपील सं./I.T.A. No.2928/Mum/2016 (धििाारण वर्ा / Assessment Year: 2011-12) Poonam Skyline Construction Jt. CIT, Range 12(1), 66/B, 3rd Floor, Podar Chambers, Mumbai बिाम/ Mumbai Samachar Marg, Fort, Vs. Mumbai-400 001 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No. AAHFP 4019 R (अपीलाथी /Appellant) (प्रत्यथी / Respondent) : अपीलाथी की ओर से / Appellant by : Shri Rahul Sarda प्रत्यथी की ओर से/Respondent by : Shri Saurabhkumar Rai सुनवाई की तारीख / : 01.08.2017 Date of…

Nirman Electronics P.Ltd, Mumbai vs. ITO 10(3)(1), Mumbai

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

Bench: Shri B.R. Baskaran (Am) I.T.A. No. 1423/Mum/2017 (Assessment Year 2011-12)

…Accordingly the AO took the view that the profit element involved in the impugned purchases should be assessed, which he estimated at 12.50% of the value of purchases on the basis of decision of Hon’ble Gujarat High Court rendered in the case of Smit P Shah (356 ITR 451). The AO assessed the same and the Ld CIT(A) also confirmed the same. Aggrieved, the assessee has filed this appeal. 4. The Ld A.R submitted that the assessee has furnished all the details in order to prove the genuineness of purchases by furnishing copies of purchase bills, payment details etc. The assessee has also proved that the said goods h…

Shekasa Engineering Co., Mumbai vs. DCIT Cir 7(2), Mumbai

The appeal of the assessee is partly allowed

Bench: Shri Joginder Singh & Shri G. Manjunathaassessment Year: 2009-10 Shekasa Engineering Co. Dcit, Pvt. Ltd., Circle-8(2)(1), बनाम/ 02Nd Floor, 182/186, Metal Room No.670, Vs. House, Kalbadevi Road, Aayakar Bhavan, Opp. Cotton Exchange, M. K. Road, Mumbai-400002 Mumbai-400002 ("नधा"रती/Assessee) (राज"व /Revenue) Pan No.:-Aaacs7426F "नधा"रती क" ओर से / Assessee By Shri Satish Mody Shri V. Justin-Dr राज"व क" ओर से / Revenue By 14/09/2017 सुनवाई क" तार"ख / Date Of Hearing : 14/09/2017 आदेश क" तार"ख /Date Of Order: आदेश / O R D E R

…ses (SLP (C) No.s 769 of 2017, order dated 16/01/2017. 2.10. In such type of cases, broadly, the Ld. Commissioner of Income Tax (Appeal) as well as this Tribunal has followed the decisions from Hon'ble Gujarat High Court in the case of Simit P. Seth (2013) 356 ITR 451 (Guj.), CIT vs Vijay M. Mistry Construction Ltd. (2013) 355 ITR 498 (Guj.), CIT vs Bhola Nath Poly Fab. (P.) Ltd. (2013) 355 ITR 290 (Guj.) and various other decisions of the Tribunal and the decision of M/s Nikunj Eximp(supra) from Hon'ble jurisdictional High Court, wherein, the aggregate disallowance was restricted to 12.5%. Admittedly, the…

DCIT 10(2)(2), Mumbai vs. M E Infraprojects P.Ltd, Mumbai

In the result appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Ble & Shri Ramit Kochar, Hon'Ble

…s not found any infirmity with the books of accounts in terms of purchases or utilization of the materials in different contracts in which the Appellant was engaged. Therefore, the ratio laid down by the Gujarat High Court in the case of CIT vs Simit P Sheth (356 ITR 451) that when the total sales and purchases has been accepted by the AO then it would be reasonable to estimate the profit made on such purchases and that profit has to be added to the income, ought to be applied to the case of the Appellant.” Considering the facts and circumstances of case in totality, the element of profit out of such unproven pur…

ACIT Cir 11(3)(1), Mumbai vs. Taprath Polymers P.Ltd, Mumbai

The appeal of the revenue is dismissed

Bench: Shri Rajendra, Am & Shri Ravish Sood, Jm आयकर अपील सं./ I.T.A. No.2996/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2009-10) Acit Circle 11(3)(1), M/S. Taprath Polymers Pvt. R. No. 204, Aayakar Bhavan Ltd. 305/306, Belscot 2Nd Floor, M.K. Marg, बिधम/ Tower, Link Road, Mumbai-400 020 Lokhandwala Complex, Vs. Andheri (W), Mumbai-400053 स्थायीलेखासं./जीआइआरसं./ Pan/Gir No. Aabct7989D (अपीलाथी/Revenue) (प्रत्यथी / Assessee) :

…available in the assessee's books of account 4. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in following the judicial pronouncements of M/s. Simit P. Sheth (2013) 18 Taxmann.com 385 (Guj), M/s. Bholanath Polyfab Pvt.Ltd. 335 ITR 290 (Guj) and M/s. Sanket Steel Traders ITA No.2801/Ahd/2008 dated 20/05/2011 which were rendered in cases where the assessees were traders whereas in the instant case the assessee is a Manufacturing company and as such those decisions were not applicable to the facts of the present case. 5. The appellant prays that the order of the CIT (A) on the ab…

ITO WD 25(1)(3), Mumbai vs. Suman C. Shah, Mumbai

The appeal of the revenue is dismissed

Bench: Shri Rajendra, Am & Shri Ravish Sood, Jm आयकर अपील सं./ I.T.A. No.2510/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2010-11) Ito Ward 25(1)(3) Shri Suman C. Shah C-10,R. No. 404, 4Th Floor, 117/B Hind Saurashtra Pratyakshkar Bhavan, Bandra बिधम/ Ind. Estate, Marol Naka, Kurla Complex, Bandra, Andheri Kurla Road, Vs. Mumbai- 400051 Andheri (E), Mumbai- 400059 स्थायीलेखासं./जीआइआरसं./ Pan/Gir No. Aljps3469F (अपीलाथी/Revenue) (प्रत्यथी / Assessee) :

…emerging from the purchase of goods under consideration by the assessee from the open/grey market. We are further of the considered view that the CIT(A) relying on the judgment of the Hon’ble High Court of Gujarat in the case of CIT Vs. Simit P. Sheth (2013) 356 ITR 451(Guj), had fairly estimated the profit margin in the hands of the assessee at 12.5% of the aggregate value of the purchases claimed by the assessee to have been made from the aforementioned parties. We find that the CIT(A) had by way of a very well reasoned order restricted the addition in the hands of the assessee to the amount of profit margin i…

ITO 19(2)(5), Mumbai vs. Pankhidevi N Doshi, Mumbai

Bench: Shri Rajendra, Am & Shri Ravish Sood, Jm आयकर अपील सं./ I.T.A. No.2507/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2011-12) Ito 19(2)(5) Smt. Pankhidevi N. Doshi 2Nd Floor, Matru Mandir, बिधम/ 52-A, Nanubhai Desai Tardeo Road, Road, Sindhi Lane Naka, Vs. Mumbai- 400007 Mumbai-400 004 स्थायीलेखासं./जीआइआरसं./ Pan/Gir No. Aejpd6317G (अपीलाथी/Revenue) (प्रत्यथी / Assessee) :

…t of profit margin which the assessee had generated from making the purchase from the open/grey market. The CIT(A) thus on the basis of his aforesaid view relied on the judgment of the Hon’ble High Court of Gujarat in the case of CIT Vs. Simit P. Sheth (2013) 356 ITR 451(Guj) and estimated the profit margin at 12.5% of the aggregate value of the bogus purchases made by the assessee from the aforementioned parties. 5. The revenue being aggrieved with the order of the CIT(A) had carried the matter in appeal before us. That despite being put to notice as regards the date of hearing of the appeal, the assessee respo…

ITO 14(2)(2), Mumbai vs. T M Mohamedally, Mumbai

The appeal of the Revenue is dismissed

Bench: Shri Joginder Singh & Shri G. Manjunathaassessment Years: 2009-10 Income Tax Officer-14(2)(2), M/S T M Mohamedally Room No.304, 3Rd Floor, Hararwala Bldg. बनाम/ Earnest House, 112, Lohar Chawl, Vs. Nariman Point, Mumbai-400002 Mumbai-400021 (राज"व /Revenue) ("नधा"रती/Assessee) Pan No.:-Aacft2448M

…ses (SLP (C) No.s 769 of 2017, order dated 16/01/2017. 2.10. In such type of cases, broadly, the Ld. Commissioner of Income Tax (Appeal) as well as this Tribunal has followed the decisions from Hon'ble Gujarat High Court in the case of Simit P. Seth (2013) 356 ITR 451 (Guj.), CIT vs Vijay M. Mistry Construction Ltd. (2013) 355 ITR 498 (Guj.), CIT vs Bhola Nath Poly Fab. (P.) Ltd. (2013) 15 T. M. Mohamedaly 355 ITR 290 (Guj.) and various other decisions of the Tribunal and the decision of M/s Nikunj Eximp(supra) from Hon'ble jurisdictional High Court, wherein, the aggregate disallowance was restricted to 1…

ITO WD 1(5), Kalyan vs. Vishal Kantilal Kanunga, Bhiwandi

In the result, all the appeals of Revenue as well as of assessee are dismissed

Bench: D.T. Garasia & Shri Rajesh Kumar

…ncy as well as of taxation laws that profit from business cannot be ascertained without deducting cost of purchase from sales. Estimation of profit ranging from 12.5% to 15% has been upheld by the Hon'ble Gujarat High Court in the case of CIT vs Simit P Sheth 356 ITR 451 (Guj.). Respectfully following the decision of Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth 38 taxman 385 (Guj), we dismiss both the appeals of the Revenue. ITA Nos.2794 & 2795/M/2017 Shri Vishal Kantilal Kanunga ITA No.2794 & 2795/M/2017 (Assessee’s appeals) 7. Since we have already dismissed the appeals of the Revenue as ab…

Vishal Kantilal Kanunga, Kalyan vs. ITO WD 1(5), Kalyan

In the result, all the appeals of Revenue as well as of assessee are dismissed

Bench: D.T. Garasia & Shri Rajesh Kumar

…ncy as well as of taxation laws that profit from business cannot be ascertained without deducting cost of purchase from sales. Estimation of profit ranging from 12.5% to 15% has been upheld by the Hon'ble Gujarat High Court in the case of CIT vs Simit P Sheth 356 ITR 451 (Guj.). Respectfully following the decision of Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth 38 taxman 385 (Guj), we dismiss both the appeals of the Revenue. ITA Nos.2794 & 2795/M/2017 Shri Vishal Kantilal Kanunga ITA No.2794 & 2795/M/2017 (Assessee’s appeals) 7. Since we have already dismissed the appeals of the Revenue as ab…

Vishal Kanitlal Kanunga, Kalyan vs. ITO WD 1(5), Kalyan

In the result, all the appeals of Revenue as well as of assessee are dismissed

Bench: D.T. Garasia & Shri Rajesh Kumar

…ncy as well as of taxation laws that profit from business cannot be ascertained without deducting cost of purchase from sales. Estimation of profit ranging from 12.5% to 15% has been upheld by the Hon'ble Gujarat High Court in the case of CIT vs Simit P Sheth 356 ITR 451 (Guj.). Respectfully following the decision of Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth 38 taxman 385 (Guj), we dismiss both the appeals of the Revenue. ITA Nos.2794 & 2795/M/2017 Shri Vishal Kantilal Kanunga ITA No.2794 & 2795/M/2017 (Assessee’s appeals) 7. Since we have already dismissed the appeals of the Revenue as ab…

Hindustan Mortar Lining LLP, Mumbai vs. JCIT RG 24(1), Mumbai

In the result, appeal of the assessee is partly allowed

Bench: D.T. Garasia & Shri Manoj Kumar Aggarwalassessment Year: 2011-12 M/S. Hindustan Mortar Lining Jt. Commissioner Of Income Llp, Tax, Gala No.35, Ground Floor, Range-24(1), Room No.506, 5Th Floor, Shreejee Industrial Estate, Vs. Subhash Road, C-13, Pratyakshakar Bhavan, Jogeshwari (E), Bandra-Kurla Complex, Mumbai – 400 060 Mumbai – 400 051 Pan: Aaffh4358D (Appellant) (Respondent) Present For: Assessee By : Ms. Neha Pranjpe, A.R. Revenue By : Shri Saurabh Deshpande, D.R. Date Of Hearing : 23.08.2017 Date Of Pronouncement : 08.09.2017 O R D E R

…profit from business cannot be ascertained without deducting 4 M/s. Hindustan Mortar Lining LLP cost of purchase from sales. Estimation of profit ranging from 12.5% to 15% has been upheld by the Hon'ble Gujarat High Court in the case of CIT vs Simit P Sheth 356 ITR 451 (Guj.). Respectfully following the decision of Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth 38 taxman 385 (Guj), we direct the AO to restrict addition to 12.5% of alleged bogus purchases of Rs.17,14,461/-. 6. In the result, appeal of the assessee is partly allowed. Order pronounced in the open court on 08.09.2017. (Manoj Kum…

ACIT 27(3), Navi Mumbai vs. Vikrant Vikas Raikar, Mumbai

In the result, appeal filed by the revenue for assessment year 2011-12 is dismissed

Bench: Shri Rajendra, Am & Shri Ram Lal Negi, Jm आिकर अपील सं./Ita No. 3617/Mum/2016 (धििाारण वर्ा / Assessment Year: 2011-12) The A.C.I.T.-27(3), Vs. Shri Vikrant Vikas Raikar, 4Th Floor, Tower No. 6, Prop. M/S Elegant Construction, Vashi Rly. Station Complex, Plot No. 8, Hotel Pearl, Vashi, D.K. Sandu Marg, Chembur, Navi Mumbai - 400071 Mumbai - 400071 स्थािी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabpr2711C (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) राजस्व की ओर से /Revenue By : Ms. Arju Garodia (Dr) यनर्ावररती की ओर से /Assessee By : None सुनर्ाई की तारीख / Date Of Hearing : 02/08/2017 घोषणा की तारीख/Date Of Pronouncement: 08/09/2017

…ies who are not regular suppliers, the appellant would have made purchases at values which are less than the market rates. It has been held by the Hon’ble Gujarat High Court in the case of CIT Vs. Bholanath Polyfab P. Ltd. (355 ITR 290 CIT vs. Smith B. Sheth (356 ITR 451) that when t purchases were not bogus, but had been made from the parties other than those mentioned in the books of accounts, the profit element embedded in such purchases could be added to the assessee’s income. In the case under consideration, the purchases have been made not for trade but for consumption in the building activities of the appe…

ACIT - 19(1), Mumbai vs. Ganesh J. Modi, Mumbai

In the result, the appeal for the AY 2010-11 of the assessee and the revenue are allowed for statistical purposes

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2008-09 & Assessment Year: 2009-10 & Assessment Year: 2010-11 Ganesh J Modi Acit Circle 19(1), 115/28 J.K. Building, Dr. M Vs. Room No. 203, 2Nd G Mahimtura Marg, Floor, Matru Mandir, 3Rdkumbharwada, Tardeo, Mumbai-400004 Mumbai-400007 Pan No. Aacpm0690C (Appellant) (Respondent) Assessment Year: 2008-09 & Assessment Year: 2009-10 & Assessment Year: 2010-11 Acit Circle 19(1), Ganesh J Modi Room No. 203, 2Nd Vs. 115/28 J.K. Building, Dr. M Floor, Matru Mandir, G Mahimtura Marg, 3Rd Tardeo, Kumbharwada, Mumbai-400007 Mumbai-400004 Pan No. Aacpm0690C (Appellant) (Respondent) Assessee By : Shri Sanjiv M. Shah, Ar Revenue By: Shri Saurabh Kumar Rai, Dr Date Of Hearing : 13/06/2017 Date Of Pronouncement: 08/09/2017

…eyond four years, (iii) because of such tangible material, the AO has rightly reopened the assessment by issuing notice u/s 148 of the Act. The Ld. CIT(A) followed the ratio laid down by the Hon’ble Gujarat High Court in the case of CIT vs. Simit Sheth (2013) 356 ITR 451 (Guj) and restricted the addition to the extent of 12.5% of the purchases made as profit element embedded in it. 6. We first deal with the 1st ground of appeal. Before us, the Ld. counsel of the assessee submits that during the course of the original assessment proceedings u/s 143(3), the assessee had submitted before the AO copies of ledger acco…

Ganesh J Modi, Mumbai vs. Asst CIT Cir 19(1), Mumbai

In the result, the appeal for the AY 2010-11 of the assessee and the revenue are allowed for statistical purposes

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2008-09 & Assessment Year: 2009-10 & Assessment Year: 2010-11 Ganesh J Modi Acit Circle 19(1), 115/28 J.K. Building, Dr. M Vs. Room No. 203, 2Nd G Mahimtura Marg, Floor, Matru Mandir, 3Rdkumbharwada, Tardeo, Mumbai-400004 Mumbai-400007 Pan No. Aacpm0690C (Appellant) (Respondent) Assessment Year: 2008-09 & Assessment Year: 2009-10 & Assessment Year: 2010-11 Acit Circle 19(1), Ganesh J Modi Room No. 203, 2Nd Vs. 115/28 J.K. Building, Dr. M Floor, Matru Mandir, G Mahimtura Marg, 3Rd Tardeo, Kumbharwada, Mumbai-400007 Mumbai-400004 Pan No. Aacpm0690C (Appellant) (Respondent) Assessee By : Shri Sanjiv M. Shah, Ar Revenue By: Shri Saurabh Kumar Rai, Dr Date Of Hearing : 13/06/2017 Date Of Pronouncement: 08/09/2017

…eyond four years, (iii) because of such tangible material, the AO has rightly reopened the assessment by issuing notice u/s 148 of the Act. The Ld. CIT(A) followed the ratio laid down by the Hon’ble Gujarat High Court in the case of CIT vs. Simit Sheth (2013) 356 ITR 451 (Guj) and restricted the addition to the extent of 12.5% of the purchases made as profit element embedded in it. 6. We first deal with the 1st ground of appeal. Before us, the Ld. counsel of the assessee submits that during the course of the original assessment proceedings u/s 143(3), the assessee had submitted before the AO copies of ledger acco…

Vardhsingh B. Parmar, Mumbai vs. ITO 19(3)(5), Mumbai

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

Bench: Shri Shamim Yahya

…situation, in my considered opinion, on the facts and circumstances of the case the 12.5% disallowance out of the bogus purchases meets the ends of justice. This is following the decision of the Hon’ble Gujarat High Court in the case of Simit P. Sheth (2013) 356 ITR 451, followed by the ITAT Mumbai Benches in a number of cases. 13. Accordingly, I modify the order of learned CIT(A) and direct that the disallowance be limited to 12.5% of the bogus purchase. 14. In the result, this appeal filed by the assessee is partly allowed. Order pronounced on this 07th day of September, 2017. (Shamim Yahya) ACCOUNTANT MEMB…

Rajendra Chandulal Shah, Mumbai vs. ITO 33(3)(1), Mumbai

In the result, this appeal filed by the assessee stands dismissed

Bench: Shri Shamim Yahya

…without which the assessee could not have declared the sales made. It is noted that only profit element is liable to tax in such cases as was held in the case of – 1. CIT vs Bholanath Poly Fab Ltd. (2013) 355ITR 290 (Guj) (HC) 2. CIT vs Simit P. Sheth (2013) 356 ITR 451 (Guj) (HC) 3. CIT vs Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) (HC) 4. ITO vs Permanand (2007) 107 TTJ 395 Qd) (Trib.) 5. Shri Madhukant B. Gandhi vs ITOITA No. 1950/M/2009 Bench 'B' dt. 23-02-2010 (AY 2005-06) (Mum.) (Trib.) 6. Sanjeev Woolen Mills vs CIT (2005) 279ITR 434 (SC) 4 ITA No.2937/Mum/2017. Shri Rajendra Chandulal Shah. In…

Mansukhlal H. Mehta, Mumbai vs. ITO 32(2)(3), Mumbai

In the result, appeals filed by the assessee for assessment years 2010-11

Bench: Shri Rajendra, Am & Shri Ram Lal Negi, Jm आिकर अपील सं./Ita No. 5645/Mum/2016 (धििाारण वर्ा / Assessment Year: 2010-11) आिकर अपील सं./Ita No. 5646/Mum/2016 (धििाारण वर्ा / Assessment Year: 2012-13) Shri Mansukhlal H Mehta, Vs. The Income Tax Officer 32(2)(3), (Prop. Of M/S United Engineering), Pratayksh Kar Bhavan, Bkc, B-702, Marble Arch, Mumbai 51St Tps Road, Borivali (W), Mumbai - 400092 स्थािी लेखा सं./जीआइआर सं./Pan/Gir No. : Aalps3521B (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent)

…72 ITR 619 (Bom) has held that merely because the suppliers had not appeared before the Assessing Officer or the CIT (A) one could not conclude that the purchases were not made by the respondent/assessee. The Hon’ble Gujrat High Court in CIT vs. Simit P. Seth 356 ITR 451(Guj) upheld the decision of the Tribunal and sustained the addition 12.5% of the total bogus purchases holding that only profit element embedded in such purchases can be added to income of the assessee. Assessment Years: 2010-11 & 2012-2013 7. So in the light of the law laid down by the Hon’ble High Courts in the cases referred above and the Ho…

Kshitj Interiors P.Ltd, Mumbai vs. DCIT 10(1)(2), Mumbai

The appeals of the assessee are dismissed

Bench: Shri Joginder Singh & Shri Rajesh Kumar

…ses (SLP (C) No.s 769 of 2017, order dated 16/01/2017. 2.10. In such type of cases, broadly, the Ld. Commissioner of Income Tax (Appeal) as well as this Tribunal has followed the decisions from Hon'ble Gujarat High Court in the case of Simit P. Seth (2013) 356 ITR 451 (Guj.), CIT vs Vijay M. Mistry Construction Ltd. (2013) 355 ITR 498 (Guj.), CIT vs Bhola Nath Poly Fab. (P.) Ltd. (2013) 355 ITR 290 (Guj.) and various other decisions of the Tribunal and the decision of M/s Nikunj Eximp(supra) from Hon'ble jurisdictional High Court, wherein, the aggregate disallowance was restricted to 12.5%. Admittedly, the…