Sanjay Oilcake Industries v. CIT

ACIT - 31 (1), Mumbai vs. Anupam Stationary Plaza, Mumbai

Accordingly these grounds raised by the assessee are partly allowed

Bench: Shri S. Rifaur Rahman, Am & Shri Ram Lal Negi, Jm आयकरअपीलसं./ I.T.A. No. 5794/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2009-10)

…considering the facts of the present case and while relying upon the following judgments:- 1) ClT vs Bholanath Poly Fab Ltd. (2013) 355 ITR 290 (Guj). (HC), 2. CIT v Simit D, Sheth (2013) 356 ITR 451 (Guj)-(HC) and 3. CIT vs. Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) (1C) and taking into consideration the facts of the present case, and also considering the order passed by the Coordinate Bench of SMC in assessee’s own case and to account for the profit element embedded in these purchase transactions to factorize profit earned by assessee 5 I.T.A. No. 5794/Mum/2018 Anupam Stationary Plaza against purchas…

Income Tax Officer-11(3)(4), Mumbai vs. Western Imaginary Transcon Private Limited, Mumbai

In the result, appeal of the Revenue in ITA No

Bench: Shri Sandeep Gosain & Shri Ramit Kochar

…kh Singh vs. CIT (1994) 12 ITR 393 (22) Samurai Software P. Ltd., vs. CIT (2008) 299 ITR 324 (Raj.) (23) CIT vs. La Medica (2001) 250 ITR 575 (24) Indian Woolen Carpet Factory vs. ITAT (2002) 125 Taxman 763 (Raj.) (25) Sanjay Oilcake Industries vs. CIT (2009) 316 ITR 274 (Guj.) 38 ACIT vs. Tribhovandas Bhimji Zaveri (2000) 74 ITD 92 (Mum). (27) Homi Jehangir Gheesta vs. CIT (1961) 41 ITR 135 (28) T. Devashaya Nadar vs. CIT (1964) 51 ITR 20 (Mad.) (29) R. S Dass vs. Union of India AIR 1967 SC 593. (30) Chairman, Board of Mining Examination vs. Ramjee AIR 1977 SC 965. (31) GTC Industries Ltd., vs ACIT (1998) 65 IT…

Dev Diamonds, Mumbai vs. ACIT 31(1), Mumbai

In the result, appeals of the assessee are partly allowed

Bench: Shri C.N. Prasad, Hon'Ble & Shri M. Balaganesh, Hon'Ble

…e sold the goods without purchasing the same. The Ld CIT(A) has taken the support of the decision rendered by Hon’ble Gujarat High Court in the case of Simit P Sheth (38 taxmann.com 385) and also the decision rendered in the case of Sanjay Olicake Industries (316 ITR 274) to come to the conclusion that the profit element embedded in the purchases could be assessed. Since the purchases have been made from a group, which had taken a different stand, the Ld CIT(A) took the view that there is possibility of inflation of purchase price, from which the assessee could have made profit. The said profit was estimated at 3…

Dev Diamonds, Mumbai vs. ACIT 31(1), Mumbai

In the result, appeals of the assessee are partly allowed

Bench: Shri C.N. Prasad, Hon'Ble & Shri M. Balaganesh, Hon'Ble

…e sold the goods without purchasing the same. The Ld CIT(A) has taken the support of the decision rendered by Hon’ble Gujarat High Court in the case of Simit P Sheth (38 taxmann.com 385) and also the decision rendered in the case of Sanjay Olicake Industries (316 ITR 274) to come to the conclusion that the profit element embedded in the purchases could be assessed. Since the purchases have been made from a group, which had taken a different stand, the Ld CIT(A) took the view that there is possibility of inflation of purchase price, from which the assessee could have made profit. The said profit was estimated at 3…

Dev Diamonds, Mumbai vs. ACIT 31(1), Mumbai

In the result, appeals of the assessee are partly allowed

Bench: Shri C.N. Prasad, Hon'Ble & Shri M. Balaganesh, Hon'Ble

…e sold the goods without purchasing the same. The Ld CIT(A) has taken the support of the decision rendered by Hon’ble Gujarat High Court in the case of Simit P Sheth (38 taxmann.com 385) and also the decision rendered in the case of Sanjay Olicake Industries (316 ITR 274) to come to the conclusion that the profit element embedded in the purchases could be assessed. Since the purchases have been made from a group, which had taken a different stand, the Ld CIT(A) took the view that there is possibility of inflation of purchase price, from which the assessee could have made profit. The said profit was estimated at 3…

Dev Diamonds, Mumbai vs. ACIT 31(1), Mumbai

In the result, appeals of the assessee are partly allowed

Bench: Shri C.N. Prasad, Hon'Ble & Shri M. Balaganesh, Hon'Ble

…e sold the goods without purchasing the same. The Ld CIT(A) has taken the support of the decision rendered by Hon’ble Gujarat High Court in the case of Simit P Sheth (38 taxmann.com 385) and also the decision rendered in the case of Sanjay Olicake Industries (316 ITR 274) to come to the conclusion that the profit element embedded in the purchases could be assessed. Since the purchases have been made from a group, which had taken a different stand, the Ld CIT(A) took the view that there is possibility of inflation of purchase price, from which the assessee could have made profit. The said profit was estimated at 3…

ITO 25(2)(1), Mumbai vs. Actube Enterprises, Mumbai

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.3941/Mum/2017 (नििाारण वर्ा / Assessment Year : 2010-11) बिाम/ Income Tax Officer-25(2)(1) Actube Enterprises Room No. 505, C-10, 5Th 27, Laxmi Flat Owner Floor, Pratyakshkar Chs Limited , V. Bhavan, Bkc, M.G. Road Extension, Bandra(East), Vile Parle(East), Mumbai-400051 Mumbai-400057 स्थायी ऱेखा सं./ Pan: Aabfa2570J (अपीऱाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri. Vivek Anand Ojha (Dr) Assessee By: Apurva R. Shah (Ar) सुनवाई की तारीख /Date Of Hearing : 01.07.2019 घोषणा की तारीख /Date Of Pronouncement : 05.08.2019 आदेश / O R D E R Per Ramit Kochar: This Appeal, Filed By Revenue, Being Ita No. 3941/Mum/2017, Is Directed Against Appellate Order Dated 15.03.2017 In Appeal No. Cit(A)-37/It-722/Ito-25(2)(1)/15-16, Passed By Learned Commissioner Of Income Tax (Appeals)-37, Mumbai (Hereinafter Called “The Cit(A)”), For Assessment Year(Ay) 2010-11, The Appellate Proceedings Had Arisen Before Learned Cit(A) From Assessment Order Dated 31.12.2015 Passed By Learned Assessing Officer (Hereinafter Called “The Ao”) U/S 143(3) R.W.S. 147 Of The Income-Tax Act, 1961 (Hereinafter Called “The Act”) For Ay:2010-11. I.T.A. No.3941/Mum/2017

…n the accounts but from other sources. The Tribunal was of the opinion that not the entire amount but the profit margin embedded in such amount would be subject to tax. 5.6 In the case of M/s.Sanjay Oilcake Industries v. Commissioner of Income tax reported in 316 ITR 274 (Guj) The Hon'ble Court had upheld the action of the CIT(A) and ITAT in determining estimated addition of 25% of the purchases in cases involving bogus purchases. The head note is as under:- "Assessment income from undisclosed sources - Additions on account of inflated purchase price - Estimate- Not a question of law - No material produce by asse…

Sachin Anantray Ghelani, Mumbai vs. Income Tax Officer-27(3)(2), Mumbai

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

Bench: Shri Ramit Kochar, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.2078/Mum/2018 (निर्धारण वर्ा / Assessment Year: 2010-11) Sachin Anantray Ghelani बिधम/ Ito 27(3)(2) 4Th Floor, Tower No. 6 A/12, Mahavir Mansion, Vs. Vallabh Baug Lane Railway Station, Extension, Ghatkopar (E), Commercial Complex Vashi, Mumbai-400077. Mumbai-400703. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Achpg2092D (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Nilesh Nandkumar Pitale Revenue By: Shri Chaudhary Arun Kumar Singh (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 25/07/2019 घोषणा की तारीख /Date Of Pronouncement: 31/07/2019 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Present Appeal Against The Order Dated 19.01.2018 Passed By The Commissioner Of Income Tax (Appeals) -25, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2010- 11. 2. The Assessee Has Raised The Following Grounds: -

…oods. In that view of the matter, as natural corollary, not the entire amount covered under such purchase, but the profit element embedded there it would be subject to tax. This was the view of this court in the case of Sanjay Oilcake Industries v. CIT [2009) 316 ITR 274 (Gui). Such decision is also followed by this court in a judgment dated August 16,2011, in Tax Assessment proceedings. No.6 79 of 2010 in the case of CIT v. kishor Amrutlal Patel. In the result, ta; appeal is dismissed." (emphasis supplied) 5.4.5 In view of the facts and circumstances of the case and the judicial pronouncements cited above, what…

ACIT - 19(1), Mumbai vs. Hitech Engineers, Mumbai

In the result appeal of the revenue is dismissed

Bench: Shri Shamim Yahya & Shri Pawan Singhacit - 19(1) M/S Hi Tech Engineers Room No. 203, 2Nd Floor, 477-479, Goldeval, Ladi Bazaar, Matru Mandir, Tardeo Road, Vs. Maulana Azad Road, Mumbai-400007. Mumbai-400004. Pan: Aaafh0253L Appellant Respondent

…IN THE INCOME-TAX APPELLATE TRIBUNAL “H” BENCH MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH JUDICIAL MEMBER ACIT - 19(1) M/s Hi Tech Engineers Room No. 203, 2nd Floor, 477-479, Goldeval, Ladi Bazaar, Matru Mandir, Tardeo Road, Vs. Maulana Azad Road, Mumbai-400007. Mumbai-400004. PAN: AAAFH0253L Appellant Respondent Appellant by : Shri Manoj Kumar Singh (Sr. DR) Respondent by : None Date of Hearing : 31.07.2019 Date of Pronouncement : 31.07.2019 ORDERUNDER SECTION 254(1)OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER; 1. This appeal by revenue is directed against the order o…

Abdul Hakim Abdul Waheed Khan, Mumbai vs. ITO 20 (1)(2), Mumbai

In the result, the appeal of assessee is partly allowed

Bench: Sri Mahavir Singhaayakr Apila Sam./ Ita No. 505/Mum/2019 (Inaqa-Arna Baya- / Assessment Year 2010-11) Abdul Hakim Abdul Waheed The Income Tax Officer, Khan Ward 20(1)(2) 108, Sunder Das Saw Mill Mumbai Vs. Compound, B.P.T. Plot, B.N. Pai Marg, Reay Road (W), Mumbai-400 010 (Apilaaqai- / Appellant) .. (P`%Yaqaai- / Respondent) स्थायी लेखा सं./Pan No. Ahrpk2330H

…आयकर अपीलीय अधिकरण “SMC” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI श्री महावीर स ुंह, न्याययक दस्य के मक्ष । BEFORE SRI MAHAVIR SINGH, JUDICIAL MEMBER Aayakr ApIla saM./ ITA No. 505/Mum/2019 (inaQa-arNa baYa- / Assessment Year 2010-11) Abdul Hakim Abdul Waheed The Income Tax Officer, Khan Ward 20(1)(2) 108, Sunder Das Saw Mill Mumbai Vs. Compound, B.P.T. Plot, B.N. Pai Marg, Reay Road (w), Mumbai-400 010 (ApIlaaqaI- / Appellant) .. (p`%yaqaaI- / Respondent) स्थायी लेखा सं./PAN No. AHRPK2330H अपीलाथी की ओर से / Appellant by : Mr. Ravindra Poojary, AR प्रत्यथी की ओर से / Respo…

Income Tax Officer 12(1)(1), Mumbai vs. Ami Riddhi Chem Private Limited, Mumbai

In the result, both the appeals are dismissed

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Blem/S. Ami Riddhi Chem Pvt. Ltd., V. Income Tax Officer – 9(1)(1) Office No. 16, 2Nd Floor Room No. 226/262, 2Nd Floor Building B-1, Laxmi Nivas Chs Ltd., Aayakar Bhavan, M.K. Road, Pai Nagar, S.V. Road Mumbai-400 020 Borivali (W), Mumbai – 400 092 Pan: Aagca 7111 H (Assessee) (Respondent) Income Tax Officer – 12(1)(1) V. M/S. Ami Riddhi Chem Pvt. Ltd., Room No. 226, 2Nd Floor Office No. 3, Gokul Apartment Aayakar Bhavan, M.K. Road, Haridas Nagar, Shimpoli Road Mumbai-400 020 Borivali (W), Mumbai – 400 092 Pan: Aagca 7111 H (Assessee) (Respondent) Assessee By : Shri Ajay Singh Department By : Shri Abdul Hakeem M

…idered when the sales have been accepted by the Assessing Officer. He followed the decision of the Hon'ble Gujarat High Court in the case of CIT v. Bholanath Poly Fab Ltd., [355 ITR 290], CIT v. Simit P. Sheth [356 ITR 451], CIT v. Sanjay Oil Cake Industries [316 ITR 274] and various other decisions, while holding so he observed as under: - “5.3. I have gone through the assessment order and submissions made in this regard. I have also gone through the survey report submitted by A.O. along with the remand report. It is noted that the A.O. had made addition out of purchase made by the assessee to the tune of Rs.4,6…

Ami Riddhi Chem Private Limited, Mumbai vs. Income Tax Officer 9(1)(1), Mumbai

In the result, both the appeals are dismissed

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Blem/S. Ami Riddhi Chem Pvt. Ltd., V. Income Tax Officer – 9(1)(1) Office No. 16, 2Nd Floor Room No. 226/262, 2Nd Floor Building B-1, Laxmi Nivas Chs Ltd., Aayakar Bhavan, M.K. Road, Pai Nagar, S.V. Road Mumbai-400 020 Borivali (W), Mumbai – 400 092 Pan: Aagca 7111 H (Assessee) (Respondent) Income Tax Officer – 12(1)(1) V. M/S. Ami Riddhi Chem Pvt. Ltd., Room No. 226, 2Nd Floor Office No. 3, Gokul Apartment Aayakar Bhavan, M.K. Road, Haridas Nagar, Shimpoli Road Mumbai-400 020 Borivali (W), Mumbai – 400 092 Pan: Aagca 7111 H (Assessee) (Respondent) Assessee By : Shri Ajay Singh Department By : Shri Abdul Hakeem M

…idered when the sales have been accepted by the Assessing Officer. He followed the decision of the Hon'ble Gujarat High Court in the case of CIT v. Bholanath Poly Fab Ltd., [355 ITR 290], CIT v. Simit P. Sheth [356 ITR 451], CIT v. Sanjay Oil Cake Industries [316 ITR 274] and various other decisions, while holding so he observed as under: - “5.3. I have gone through the assessment order and submissions made in this regard. I have also gone through the survey report submitted by A.O. along with the remand report. It is noted that the A.O. had made addition out of purchase made by the assessee to the tune of Rs.4,6…

Sea Linkers P.Ltd, Mumbai vs. ACIT 8(1)(2), Mumbai

In the result, appeal of the assessee in ITA no

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.2297/Mum/2017 (नििाारण वर्ा / Assessment Year: 2010-11) बिाम/ M/S. Sea Linkers Private Acit 8(1)(2), Ltd., Aayakar Bhavan, Bpt, Plot No. 107, M.K Road V. Quay Street, Darukhana, Mumbai-400020 Mumbai-400010 स्थायी ऱेखा सं./ Pan: Aahcs5084N (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. Assessee By: Shri. Deepak Tralshawala Revenue By: Shri. Manish Kumar Singh,Dr

…on 06.04.2015 whereby the Supreme Court has dismissed the SLP confirmed the order dated 09.12.2014 passed by the Gujarat High Court and other decisions of the High Court of Gujarat in the case of Sanjay Oilcake Industries Vs. Commissioner of Income Tax (2009) 316 ITR 274 (Guj) and N.K. Industries Ltd. Vs. Dy. C.I.T., Tax Appeal No.240/2003 decided on 20.06.2016, the parties are bound by the principle of law pronounced in the aforesaid three judgments. 16. However, we note that the Hon'ble jurisdictional High Court in the case of Nikunj Eximp Enterprises (in Writ petition no 2860, order dt. 18.6.2014) has upheld 1…

Income Tax Officer 19(1)(5), Mumbai vs. Shri Hiralal M. Jain, Mumbai

Appeal are partly allowed

Bench: Shri R.C. Sharma, Am & Shri Amarjit Singh, Jm

…IN THE INCOME TAX APPELLATE TRIBUNAL“H” BENCH, MUMBAI BEFORE SHRI R.C. SHARMA, AM AND SHRI AMARJIT SINGH, JM I.T.A. No.5718/M/2017 (Assessment Year: 2011-12) ITO-19(1)(5) Vs. Shri Hiralal M. Jain Room No.215, Matru Jay Vijay Metal corporation, Mandir, Mumbai-400007. 1st Pathan St. 4th Kumbharwada Lane, Mumbai-400004. स्थायीलेखासं./ जीआइआरसं./ PAN/GIR No. : AABPJ2424L (Appellant) .. (Respondent) Assessee by: None Department by: Shri Manoj Kumar Singh (DR) Date of Hearing: 13.03.2019 Date of Pronouncement: 04/06/2019 O R D E R PER AMARJIT SINGH, JM: The present appeal has been filed by the revenue against the ord…

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

…he entire amount covered under such purchase would not be subjected to tax and only the profit elefrient embedded therein to be taxed. While coming to the above conclusion, the Hon'ble High Court also relied on the decision in the case of Sanjay Oil Cake Ind. 316 ITR 274 (Guj). 5.10 In Sanjay Oilcake Industries v. Commissioner of Income-tax [2009] 316 ITR 274 (Guj), it was held as under: ''Thus, it is apparent that both the Commissioner (Appeals) and the Tribunal has concurrently accepted the .finding of the Assessing Officer that the apparent sellers who had issued sale bills were not traceable. That goods were…

Mitesh Ilesh Gadhia, Mumbai vs. DCIT Cen Cir 4(2), Mumbai

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

Bench: Shri B.R. Baskaran & Shri Ravish Soodshri Mitesh Ilesh Gadhia Dcit, Central Circle-4(2) 201, Vyapar Bhavan, 2Nd Floor Room No. 1918 368/270 Narshi Natha Street Vs. Air India Building Masjid Bunder (W) Nariman Point Mumbai 400009 Mumbai 400021 Pan – Aegpg2818A Appellant Respondent

…nt embedded in the purchase transactions alone should be brought to tax. In this regard, the Ld CIT(A) relied upon following decisions:- (a) Hariram Bhambhani (ITA No.313 of 2013)(Bom) (b) Bholanath Poly Fab P Ltd 9355 ITR 290)(Guj) (c) Sanjay Oil Cake Ind. (316 ITR 274)(Guj) The Ld CIT(A) further noticed that the profit rate was estimated at 12.50% of purchases in the case of CIT vs. Simit Sheth (2013)(38 taxmann.com 385)(Guj). The Ld CIT(A) noticed that the Mumbai bench of ITAT has also estimated G.P rate of 12.50% of bogus purchases in the case of M/s Ratnagiri Steels (80 taxmann.com 265)(Mum-ITAT), but allow…