Sanjay Oilcake Industries v. CIT

Hans Chemicals P.Ltd, Mumbai vs. ITO 12(2)(3), Mumbai

In the result, this appeal by the assessee stands dismissed

Bench: Shri Shamim Yahya

…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) 355 ITR 290 (Guj). (HC) 2. CIT v Simit P. Sheth (2013) 356 ITR 451 (Guj) (HC) 3. CIT vs. Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) 4. ITO vs. Permanand (2007) 107 TTJ 395 (Jd)(Trib.) 5. Madhukant B. Gandhi vs. ITO ITA No. 1950/M/2009 Bench 1B' dt. 23-02-2010 (AY 2005-06) (Mum.)(Trib,) 6. Sanjeev Woolen Millls Vs. CIT (2005) 279 ITR 434 (SC) 6. Sanjeev Woolen Mills v. CIT (2005) 279 ITR 434 (SC) In view of the above discussion it is seen that the addition made by the A.…

Alamgir Kasam Ali, Mumbai vs. ITO 26(1)(1), Mumbai

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

Bench: Shri Shamim Yahya

…d in such purchases has been taxed by the AO @ 25%. 4.1.12 Therefore the possible profit out of purchases made through non genuine party has been estimated by the AO which is commensurate with the recent judgment in the case of CIT vs. Sanjay Oil Cakes (2009) 316 ITR 274 of Honble Gujarat High Court wherein disallowance on account of bogus purchases in the case of manufacturers was sustained at 25% of the alleged bogus bogus purchases. 4.1.13 The AO has only added the profit element embedded in the aforesaid bogus purchases @ 25% which seems to be justified in view of the nature of the business of the appellant,…

Mukesh Radhyesham Goyal, Mumbai vs. ITO 18(2)(2), Mumbai

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

Bench: Shri Shamim Yahya

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ ‘SMC’, मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “SMC”, MUMBAI Before Shri Shamim Yahya, Accountant Member ITA No.7276/Mum/2016 : Asst.Year 2010-2011 Shri Radhyesham Goyal The Income Tax Officer बनाम/ 510 Cotton Exchange, Kalbadevi Road Ward 18(2)(2) Mumbai – 400 002. Mumbai. Vs. PAN : AABPG3681L. (अपीलाथ" /Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से /Appellant by : --- None --- ""यथ" क" ओर से /Respondent by : Shri B.Satyanarayana Raju (Sr.DR) सुनवाई क" तार"ख / घोषणा क" तार"ख / Date of Hearing : 16.05.2017 Date of Pronouncement : 03.07.2017 आदेश / O R D E R T…

Haresh A Rohra, Thane vs. ITO WD 1(4), Thane

In the result, appeal of Revenue is dismissed whereas appeal of assessee is allowed in part

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm Haresh A. Rohra Vs. Ito Wd 1(4), Thane - 4/A, Shalimar Society 400604 Kopri Colony, Thane Pan/Gir No. Advpr3257J Appellant) .. Respondent) Ito Wd 1(5), Thane Vs. Haresh A Rohra Prop. M/S. Mahavir Corporation, Flat No.4, Shalimar Society, Kopri Colony, Thane – 400603 Pan/Gir No. Advpr3257J Appellant) .. Respondent)

…in respect of alleged bogus purchases, therefore, it is not a case where entire amount has been siphoned off by way of obtaining bogus purchases. Therefore, after applying the judicial pronouncements by Gujarat High Court in case of Sanjay Oil Cake Industries 316 ITR 274 and Vijay Proteins Ltd., 58 ITD 428 restricted the addition to the extent of 25%. 9. It was „the contention of learned AR that facts of Sanjay Oil Cake Industries (supra) were entirely different. Our attention was invited to the ledger account of all the suppliers in the assessee‟s books, invoice issued by them, relevant extract of the bank state…

DCIT Cir 29(3), Mumbai vs. SMC Sbk Jv, Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm Dcit Cir 29(3), Mumbai – Vs. Smc Sbk Jv 400 051 Shop No.2, Aakruti Elgance, 90 Feet Road Govanpada, Mulund (W), Mumbai – 400 080 Pan/Gir No. Ablfs7647H Appellant) .. Respondent)

…old by them.· This may also be one of the factors due to which the seller may be willing to charge lower rates for unaccounted goods as compared to accounted for goods. 6.7 In the case of Mls Sanjay Oilcake Industries V. Commissioner of lncome Tax reported in 316 ITR 274 (Guj) , the Hon'ble court had 5 SMC SBK JV upheld the action of the CIT(A) and ITAT in determining estimated "addition of25% of the purchases in cases involving bogus purchase. Very recently in the case of Commissioner of Income Tax v. Simit P. Sheth 356 ITR 451 (Guj), the Hon'ble High Court has given a finding that estimation of rate of profit m…

ACIT 16(3), Mumbai vs. Tirupati Earth Neeprima Jv, Mumbai

In the result, all the appeals of Revenue are dismissed

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

…entire amount covered under such purchase would not be subjected to tax and only the profit element embedded therein was 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 (Gui). -------------------------------------------------------------------- 2.4.32 As narrated earlier, the Ld. A.O. in this case has himself held that the purchases themselves were not bogus though the parties from whom the purchases were Page 4 of 6 ITA No.5442, 5443 & 5444/Mum/2014 Tirupati Earth Neeprima JV; AYs. 09-10,10-11& 11-12 made by…

Asst CIT 16(3), Mumbai vs. Tirupati Earth Neeprima Jv, Mumbai

In the result, all the appeals of Revenue are dismissed

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

…entire amount covered under such purchase would not be subjected to tax and only the profit element embedded therein was 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 (Gui). -------------------------------------------------------------------- 2.4.32 As narrated earlier, the Ld. A.O. in this case has himself held that the purchases themselves were not bogus though the parties from whom the purchases were Page 4 of 6 ITA No.5442, 5443 & 5444/Mum/2014 Tirupati Earth Neeprima JV; AYs. 09-10,10-11& 11-12 made by…

Asst CIT 16(3), Mumbai vs. Tirupati Earth Neeprima Jv, Mumbai

In the result, all the appeals of Revenue are dismissed

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

…entire amount covered under such purchase would not be subjected to tax and only the profit element embedded therein was 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 (Gui). -------------------------------------------------------------------- 2.4.32 As narrated earlier, the Ld. A.O. in this case has himself held that the purchases themselves were not bogus though the parties from whom the purchases were Page 4 of 6 ITA No.5442, 5443 & 5444/Mum/2014 Tirupati Earth Neeprima JV; AYs. 09-10,10-11& 11-12 made by…

Suresh L. Satyani, Mumbai vs. ITO 23(3)(4), Mumbai

In the result, appeal filed by the assessee in ITA No

Bench: Shri C.N. Prasad & Shri Ramit Kochar

…ivate Limited in ITA no. 120/2012 dated 07-01-2013 and CIT v. N R Portfolio Private Limited in ITA no. 1018/1019 of 2011 dated 22.11.2013. The A.O. relying on the ratio of the decision of in the case of Sanjay Oilcake Industries v. ITA 3452/Mum/2016 10 CIT 316 ITR 274 (Guj), Bholanath Polyfab Pvt Ltd 40 Taxman 494(Guj) and M/s. Vijay Proteins Ltd. (1996) 58 ITD 428 (Ahd) and 25% of such purchases of Rs. 60,44,860/- stood disallowed by the AO treating as element of profit embedded in the transaction , which led to disallowance to the tune of Rs. 15,11,215/- and for the purchases made by the assessee from M/.s.…

DCIT 15(3)(2), Mumbai vs. Sterling Electro Enterparises P.Ltd, Mumbai

In the result, appeal of the Revenue and the CO of the assessee are decided protanto

Bench: Shri D. Karunakara Rao & Shri Ram Lal Negidcit-15(3)(2), फनाभ/ Sterling Electro Enterprises R.No. 451, 4Th Floor, Aayakar Pvt Ltd., Vs. 101-106, Exim Link 1 St Floor, Bhavan, M.K. Road, Mumbai-20. Mulund Goregaon Road, Near Nahur Railway Station, Bhandup (W), Mumbai-78. स्थामी रेखा सं./ Pan : Aabcs6528H (अऩीराथी /Appellant) .. (प्रत्मथी / Respondent) C.O. No.175/M/2016 (Arising Out Of Ita No.1506/M/2015) (Ay 2009-2010) Sterling Electro Enterprises Pvt फनाभ/ Dcit-15(3)(2), R.No. 451, 4Th Floor, Aayakar Ltd., Vs. 101-106, Exim Link 1 St Floor, Bhavan, M.K. Road, Mumbai- Mulund Goregaon Road, 20. Near Nahur Railway Station, Bhandup (W), Mumbai-78. स्थामी रेखा सं./ Pan : Aabcs6528H (अऩीराथी /Appellant) .. (प्रत्मथी / Respondent) अऩीराथी की ओय से / Assessee By : Shri Devendra Jain प्रत्मथी की ओय से/ Revenue By : Dr. A.K. Nayak, Dr

…ircumstances of the case and in law, the Ld CIT (A) has erred in arbitrarily estimating the profit at the rate of 15% of the alleged bogus purchases by wrongly relying on the decision of the Gujarat High Court in the case of Sanjay Oilcake Industries vs. CIT (316 ITR 274) disregarding the fact that there were withdrawals by bearer cheque from the accounts of the creditors whereas there is no such finding in the assessee‟s case.” 2. The only issue raised in the main appeal of the Revenue (ITA No.1506/M/2015) relates to the „bogus purchases‟ and „correctness of addition of 100% of such purchases‟. While AO made add…

ITO WD 1(5), Kalyan vs. Gopal Ramshish Tripathi, Bhiwandi

In the result, the appeal for all three years, are PARTLY

Bench: Shri R.C.Sharma, Am

…ross profit goes up and whether the resultant gross profit is higher than the gross profit normally shown in the earlier years." 25% disallowance of bogus I unverifiable purchases had been upheld in following cases (1) Sanjay Oil Cake Industries Vs CIT (2008) 316 ITR 274 (Guj) (2) Vijay Proteins Ltd Vs ACIT 58 ITD 428 (Abad) (3) M/s Nand Kishore Meghraj Jewellers, Jaipur CO. No. lOSIJP/09 arising out of ITA No. 433/JP/2009 by ITAT Jaipur (4) M/s. Trident Jewellers ITAT Jaipur ITA No. 552/JP/2013. Disallowance @ 25% out of Bogus purchases, held as a reasonable in the case of Vijay Proteins Ltd., in view of the fac…

Remi Process Plant and Machinery Ltd, Mumbai vs. DCIT Cir 3(3), Mumbai

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

Bench: Shri D.T. Garasia & Shri Rajesh Kumar: (A.Y : 2011-12) Dcit, Circle – 3(3)(1) Vs. M/S. Remi Process Plant & Mumbai (Appellant) Machinery Ltd. 11 Cama Industrial Estate Walbhat Road, Goregaon (E) Mumbai 400 009 Pan : Aaacr0409H (Respondent) : M/S. Remi Process Plant & Vs. Dcit, Circle – 3(3)(1) Machinery Ltd. Mumbai 11 Cama Industrial Estate Walbhat Road, Goregaon (E) Mumbai 400 009 Pan : Aaacr0409H (Respondent) Appellant By : Shri Purushottam Kumar Respondent By : Shri Bhagirath Singh Date Of Hearing : 28/02/2017 Date Of Pronouncement : 21/03/2017

…d have been withdrawn from bank and cash has been remitted back to the purchaser after deducting a nominal commission. 8. The matter carried to CIT(A) and CIT(A) has restricted the disallowance of 25% in view of the judgement of Sanjay Oil Cake Industries vs 316 ITR 274. The learned AR submitted that the assessee company has furnished copies of invoice, delivery challan, purchase order, copy of bank statement and account confirmation from the said party. Therefore, no addition should be made. He relied upon the decision of M.K. Brothers 163 ITR 249, CIT vs 250 ITR 476, CIT vs Nangalia Fabrics Pvt. Ltd. 220 Taxma…

DCIT Cir 3(3)(1), Mumbai vs. Remi Process Plant & Machinery Ltd, Mumbai

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

Bench: Shri D.T. Garasia & Shri Rajesh Kumar: (A.Y : 2011-12) Dcit, Circle – 3(3)(1) Vs. M/S. Remi Process Plant & Mumbai (Appellant) Machinery Ltd. 11 Cama Industrial Estate Walbhat Road, Goregaon (E) Mumbai 400 009 Pan : Aaacr0409H (Respondent) : M/S. Remi Process Plant & Vs. Dcit, Circle – 3(3)(1) Machinery Ltd. Mumbai 11 Cama Industrial Estate Walbhat Road, Goregaon (E) Mumbai 400 009 Pan : Aaacr0409H (Respondent) Appellant By : Shri Purushottam Kumar Respondent By : Shri Bhagirath Singh Date Of Hearing : 28/02/2017 Date Of Pronouncement : 21/03/2017

…d have been withdrawn from bank and cash has been remitted back to the purchaser after deducting a nominal commission. 8. The matter carried to CIT(A) and CIT(A) has restricted the disallowance of 25% in view of the judgement of Sanjay Oil Cake Industries vs 316 ITR 274. The learned AR submitted that the assessee company has furnished copies of invoice, delivery challan, purchase order, copy of bank statement and account confirmation from the said party. Therefore, no addition should be made. He relied upon the decision of M.K. Brothers 163 ITR 249, CIT vs 250 ITR 476, CIT vs Nangalia Fabrics Pvt. Ltd. 220 Taxma…

Rashtriya Chemicals Copper Corporation, Mumbai vs. ITO 18(3)(1), Mumbai

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

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “G”, MUMBAI SHRI C.N. PRASAD (JUDICIAL MEMBER) SHRI ASHWANI TANEJA (ACCOUNTANT MEMBER) I.T.A. No.4931/Mum/2016 (Assessment Year 2009-10) Shri Rashtriya Copper Corporation vs Income Tax Officer 18(3)(1), 4-A, Jawahar Mansion, Sitaram Mumbai Poddar Marg, Fanas Wadi Mumbai-400 002 PAN No. AAFFR0149G (Appellant) (Respondent) Appellant by Shri Ratan Samal Respondent by Mrs Beena Santosh Date of hearing : 15-02-2017 Date of order : 27-02-2017 O R D E R Per Ashwani Taneja, AM:- This appeal has been filed by the assessee against the order of Commissioner of Income-t…

ITO 16(3)(1), Mumbai vs. Shailesh L. Chheda, Mumbai

The appeal of the Revenue is partly allowed

Bench: Shri Joginder Singh & Shri N.K. Pradhanassessment Year: 2010-11 Income Tax Officer-16(3)(1), Shri Shailesh Lakhamshi Room No.219, Chheda, बनाम/ Matru Mandir, Shop No.04, Narayan Vs. Mumbai-400007 Buildg. S.V. Road, Opp. Central Bank, Mumbai-400004 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. Aacpc0733G Shri B.S. Bist-Dr राज"व क" ओर से / Revenue By "नधा"रती क" ओर से / Assessee By None

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ, ई, मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “E”, MUMBAI "ी जो"ग"दर "संह, "या"यक सद"य एवं "ी एन. के. "धान, लेखा सद"य, के सम" Before Shri Joginder Singh, Judicial Member, and Shri N.K. Pradhan, Accountant Member Assessment Year: 2010-11 Income Tax Officer-16(3)(1), Shri Shailesh Lakhamshi Room No.219, Chheda, बनाम/ Matru Mandir, Shop No.04, Narayan Vs. Mumbai-400007 Buildg. S.V. Road, Opp. Central Bank, Mumbai-400004 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. AACPC0733G Shri B.S. Bist-DR राज"व क" ओर से / Revenue by "नधा"रती क" ओर से / Assessee by NONE 20/…

Sai Sarnam Engineers, Mumbai vs. ITO 2(4) Kalyan, Kalyan

In the result the appeal is partly allowed

Bench: S/Shri. D.T. Garasia & Ashwani Tanejaassessment Year 2009 – 10 Income Tax Officer, 2Nd Floor, M/S Sai Sarnam Engineers V. Flat No. 1105-1106, Pleasant Park Ward 2(4) Kalyan, Mohan Plaza, Yogi Hills, Mulund – West Wayale Nagar, Khadakpada, Mumbai – 400 080 Kalyan – West – 421 301 Pan No.Aaefs 0726 K (Appellant ) (Respondent) Appellant By Shri Rahul K. Hakani & Shri Sashank Dundu Respondent By Shri M.C. Omi Ningshen Date Of Hearing : 24.01.2017 Date Of Pronouncement : 17 .02.2017

…purchases made from ITA.NO.2939/Mum/2016 M/s. Sai Sarnam Engineers unverifiable / Hawala Dealers. The disallowance @ 25% out of unverifiable purchases from Hawala dealers had been upheld in the following cases: (1) Sanjay Oil Cake Industries Vs. CIT ( 2008) 316 ITR 274 (GUJ) (2) Vijay Protein Ltd Vs. ACIT 58 ITD 428 (Abd) (3) M/s Nand Kishore Meghraj Jewellers, Jaipur CO.NO.105/JP/09 arising out of ITA No.433/JP/2009 by ITAT Jaipur (4) M/s. Trident Jewellers ITAT Jaipur ITA NO. 552/JP/2013. In view of the above stated facts, the disallowance @ 25 % of Rs.26,38,470/- works out to Rs.6,59,617/- is sustained and…

ITO WD 3(2), Thane vs. Rajendra B. Jain, Thane

In the result the appeal of the department is dismissed

Bench: S/Shri. D.T. Garasia & Ashwani Tanejaassessment Year 2009 – 10 Income Tax Officer V. Rajendra B Jain Ward 3(2), Thane Prop. Rainbow Wroght Iron Room No.04J, 6Th Floor, Furniture, 16, Lily Apartment Ashar It Park Aghayari Lane, Tembhi Naka Midc, Wagle Indl. Estate Thane (W) -400 601 Thane (W) – 400 604 Pan No.Aappj3404J (Appellant ) (Respondent) Appellant By Shri M.C. Omi Ningshen Respondent By Shri N.A. Kulkarni C.O No.186/Mum/2016 (Arising Out Of Ita No. 2932/Mum/2016) Rajendra B Jain V. Income Tax Officer Prop. Rainbow Wroght Iron Ward 3(2), Thane Room No.04J, 6Th Floor, Furniture, 16, Lily Apartment Aghayari Lane, Tembhi Naka Ashar It Park Thane (W) -400 601 Midc, Wagle Indl. Estate Thane (W) – 400 604 Pan No.Aappj3404J (Appellant ) (Respondent) Appellant By Shri N.A. Kulkarni Respondent By Shri M.C. Omi Ningshen

…oversy is covered by the decision of Hon’ble Gujarat High Court and Bombay High court in case of Nikunj Eximp Enterprises Pvt. Ltd.. Moreover Hon’ble Gujarat High Court in M.K brothers 163 ITR 249 and he has relied upon the decision of Sanjay Oilcake Industry 316 ITR 274 decision of Gujaraj High Court and Gujarat High Court in case of Simit P sheth in 356 ITR 451 therefore he supports the action of the CIT(A). 6. We have heard the rival contention of both the parties. Looking at facts and circumstances of the case we found that CIT(A) hs considered the various decisions of Gujarat High Court and Sanjay Oilcake I…

Kiran Navin Doshi, Mumbai vs. ITO -23(2)(4), Mumbai

In the result, the assessee’s appeal for A

Bench: Shri Jason P. Boaz & Shri Saktijit Deysmt. Kiran Navin Doshi Income Tax Officer-23(2)(4) D-705, Kalp Nagri C-10, Pratyksha Kar Bhavan Vs. B.R. Road, Mulund (W) Bkc, Bandra East Mumbai 400080 Mumbai Pan – Abwpd5848A Appellant Respondent

…sessee had failed to discharge the onus to prove the genuineness of the transactions, mere mentioning of Section 68 did not affect the addition made when transactions were found bogus." 7.20. In Sanjay Oilcake Industries vs. Commissioner of Income- tax 120091 316 ITR 274 (Guj), it was held as under: “12. Thus, it is apparent that both CIT(A) and the Tribunal have concurrently accepted the finding of the AO that the apparent sellers who had issued sale bills were not traceable. That goods were received from the parties other than the persons who had issued bills for such goods. Though the purchases are shown to 1…

Refrigerated Deistributors P.Ltd, Mumbai vs. DCIT 2(3)(1), Mumbai

In the result, all the five appeals of assessee are partly allowed and appeal of Revenue is dismissed

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am

…entire amount covered under such purchase would not be subjected to tax and only the profit element embedded therein was 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). Similarly, in yet another decision of Hon'ble Gujarat High Court in the case of CIT(A) vs. Simit Sheth (2013) 38 Taxmann.com 385 (Guj), Hon'ble Court was seized with a similar issue where the AO had found that some of the alleged suppliers of steel to the assessee had not supplied any goods but had only provided sale bills and hence, purch…

Refrigerated Deistributors P.Ltd, Mumbai vs. DCIT 2(3)(1), Mumbai

In the result, all the five appeals of assessee are partly allowed and appeal of Revenue is dismissed

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am

…entire amount covered under such purchase would not be subjected to tax and only the profit element embedded therein was 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). Similarly, in yet another decision of Hon'ble Gujarat High Court in the case of CIT(A) vs. Simit Sheth (2013) 38 Taxmann.com 385 (Guj), Hon'ble Court was seized with a similar issue where the AO had found that some of the alleged suppliers of steel to the assessee had not supplied any goods but had only provided sale bills and hence, purch…