Vijay Proteins Ltd. v. Asst. CIT

ACIT Cir 4(2), Mumbai vs. Kaysons Agencies P.Ltd, Mumbai

The appeal of the assessee is partly allowed

Bench: Shri Joginder Singh & Shri Rajesh Kumarassessment Year:2007-08

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ, ‘ए’ ,मुंबई। IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, ‘A’ MUMBAI "ी जो"ग"दर "संह, "या"यक सद"य एवं "ी राजेश कुमार, लेखा सद"य, के सम" Before Shri Joginder Singh, Judicial Member, and Shri Rajesh Kumar, Accountant Member Assessment Year:2007-08 Kaysons Agencies Private Ltd. ACIT, 27, Chottalal Bhavan, Circle-4(2), बनाम/ Kalbadevi Road, Aayakar Bhavan, Vs. Mumbai-400020 M.K. Road, Mumbai-400020 ("नधा"रती /Assessee) (राज"व /Revenue) PAN. No.AAACK4485C Assessment Year: 2006-07 Kaysons Agencies Private Ltd. ACIT, 27, Chottalal Bhavan, Circle-4(2), बनाम/ Kalbadevi Road,…

Kaysons Agencies Pvt. Ltd., Mumbai vs. A.C.I.T.Cir.4(2), Mumbai

The appeal of the assessee is partly allowed

Bench: Shri Joginder Singh & Shri Rajesh Kumarassessment Year:2007-08

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ, ‘ए’ ,मुंबई। IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, ‘A’ MUMBAI "ी जो"ग"दर "संह, "या"यक सद"य एवं "ी राजेश कुमार, लेखा सद"य, के सम" Before Shri Joginder Singh, Judicial Member, and Shri Rajesh Kumar, Accountant Member Assessment Year:2007-08 Kaysons Agencies Private Ltd. ACIT, 27, Chottalal Bhavan, Circle-4(2), बनाम/ Kalbadevi Road, Aayakar Bhavan, Vs. Mumbai-400020 M.K. Road, Mumbai-400020 ("नधा"रती /Assessee) (राज"व /Revenue) PAN. No.AAACK4485C Assessment Year: 2006-07 Kaysons Agencies Private Ltd. ACIT, 27, Chottalal Bhavan, Circle-4(2), बनाम/ Kalbadevi Road,…

Kaysons Agencies P.Ltd, Mumbai vs. ACIT Cen Cir 20, Mumbai

The appeal of the assessee is partly allowed

Bench: Shri Joginder Singh & Shri Rajesh Kumarassessment Year:2007-08

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ, ‘ए’ ,मुंबई। IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, ‘A’ MUMBAI "ी जो"ग"दर "संह, "या"यक सद"य एवं "ी राजेश कुमार, लेखा सद"य, के सम" Before Shri Joginder Singh, Judicial Member, and Shri Rajesh Kumar, Accountant Member Assessment Year:2007-08 Kaysons Agencies Private Ltd. ACIT, 27, Chottalal Bhavan, Circle-4(2), बनाम/ Kalbadevi Road, Aayakar Bhavan, Vs. Mumbai-400020 M.K. Road, Mumbai-400020 ("नधा"रती /Assessee) (राज"व /Revenue) PAN. No.AAACK4485C Assessment Year: 2006-07 Kaysons Agencies Private Ltd. ACIT, 27, Chottalal Bhavan, Circle-4(2), बनाम/ Kalbadevi Road,…

Maheshkumar D. Chandak, Mumbai vs. DCIT 15(2), Mumbai

The appeal of the assessee is partly allowed

Bench: Shri G.S.Pannu, Am & Shri Ravish Sood, Jm आयकर अपील सं./ I.T.A. No. 2732/Mum/2016 (निर्धारण वर्ा / Assessment Year: 2009-10) Shri Mahesh Kumar D. Chandak, Dcit 15(2), 102/104 Praveen House, बिधम/ Mumbai 2Nd Floor, 1St Pathan Street, Vs. 4Th Kumbharwadi Mumbai- 400004 स्थायीलेखासं./जीआइआरसं./ Pan/Gir No. Acypc2181J (अपीलाथी/Appellant) (प्रत्यथी / Revenue) :

…there before the High Court, as well as relying on the view arrived at by the Hon’ble High Court in the case of CIT Vs. Vijay M. Mistry Construction Ltd. (2013) 355 ITR 498 (Guj), wherein the order of the ITAT, Ahmedabad, Bench in the case of Vijay Proteins (58 ITD 428) was approved, thus concluded that there could be no uniform yardstick for estimating the rate of profit in respect of bogus purchases, as the same was bound to vary from business to business. The CIT(A) thus being of the considered view that the various Hon‟ble Courts had upheld an estimated profit involved in bogus purchases, in the range of 12.…

Shyam K Gyanchandani, Ulhasnagar vs. ACIT Cir (2), Kalyan

In the result, this appeal by the assessee stands partly allowed

Bench: Shri Shamim Yahya

…llant is rejected u/s.145(3) of the Act. The disallowance @ 25% out of unverifiable purchases from unverifiable/hawala dealer had been upheld in the following cases: (1) Sanjay Oil Cake Industries Vs CIT (2008) 316 ITR 274 (Guj) (2) Vijay Proteins 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.5,44,589/-works out to Rs.1,36,147/- and the same is added to the total income of the appellant. The app…

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

…may not be worked out at the amount of Rs,40,62,462/- as there was going to be enhancement in the addition. 4.1.15 In response to the same, the appellant has submitted that the AO applied the ratios of M/s. Vijay Proteins Ltd. Vs Asst CIT (1996) 55 TTJ 76 or 58 ITD 428. The facts of Vijay Proteins case were peculiar and same are not applicable to the facts of the assessee as in the case of Vijay Proteins the assessee failed to produce alleged suppliers, brokers and transporters or any other evidence genuineness of impugned transactions of 8 ITA No.1030/Mum/2017. Shri Alamgir Kasam Ali. purchase & therefore such…

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)

…, 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 statement showing payment made in respect…

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)

…e Tribunal relied on its earlier decision in the case of Sanket Steel Traders vs. ITO (IT Appeal No.280! & 2937 (Ahd.) of2008, dated 20.05.2011) and also made 4 SMC SBK JV reference to Tribunal's decision in the 'case of Vijay . Proteins Ltd. vs. AcrT (1996) 58 ITD 428 (Ahd.). On appeal by the department, the Hon'ble Gujarat High Court held as follows: 6 We are of the opinion that the Tribunal committed no error. Whether the purchases themselves were bogus or whether the parties from whom such purchases were allegedly made were bogus is essentially a question of fact. The Tribunal having examined the evidence on…

ITO 20(3)(5), Mumbai vs. Zahid Abbas Mankad, Mumbai

…the assessee, he held that purchases made by the assessee were not genuine,that the goods had been purchased from other suppliers,that the only bills of the items were obtained from the above- mentioned nine parties. He referred to the case of Vijay Proteins (58 ITD 428) and held that the books of accounts maintained by the assessee were not verifiable.Finally,he held that 25% of the purchase price, debited in the books of accounts,through the fictitious invoices obtained from the bogus suppliers, had to be disallowed on account of inflation of purchases and unexplained investment in such purchases. Thus, the AO…

Asst CIT 18(1), Mumbai vs. Chetan Pravin Chitalia, Mumbai

In the result, the appeal of Revenue is dismissed

Bench: Sri Mahavir Singh, Jm & Sri Ramit Kochar, Am

…erred in allowing purchases by placing reliance on the decision of Gujarat High Court in the case of CIT vs Simit P Sheth O/TAXAP/552/2012 Tax Appeal NO 533 of 2012 dt. 16.01.2013 (356 ITR 451) and ITAT Ahmedabad in the case of M/s Vijay Proteins Ltd Vs ACIT 58 ITD 428 and ITAT, Mumbai decision in the case of Rajiv G. Kalathi in ITA No 6727/Mum12012 dtd. 20 08.2014 in AY 2009-10, which are not relevant to the facts of the instant case. 4. On the facts and in the circumstances of the case and in law, the Ld CIT(A) has erred in restricting the addition made on account of bogus purchases from 2 parties viz M/s N R…

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

…o. 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. Navkar Diamonds and Mayur Exports aggregating to Rs 19,31,040/- , it was observed by the AO that the…

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

…ss 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 fact that the savings occurred to the suppliers on a…

ACIT 19(2), Mumbai vs. P.B. Metal Corporation, Mumbai

…आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, , , , मुंबई आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण मुंबई मुंबई “ जेजेजेजे” खंडपीठ मुंबई खंडपीठ खंडपीठ खंडपीठ Income-tax Appellate Tribunal -“J”Bench Mumbai सव"ी सव"ी सव"ी राजे"" सव"ी राजे"" राजे"",लेखा राजे"" लेखा लेखा सद"य लेखा सद"य सद"य एवं सद"य एवं एवं, राम लाल नेगी एवं राम लाल नेगी राम लाल नेगी, "याियक राम लाल नेगी "याियक "याियक सद"य "याियक सद"य सद"य सद"य Before S/Shri Rajendra,Accountant Member and Ram Lal Negi,Judicial Member आयकर आयकर अपील आयकर आयकर अपील अपील संसंसंसं./I.T.A./4150/Mum/2015, िनधा"रण अपील िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Year: 2009-10 व…

Ratnagiri Stainless P. Ltd, Mumbai vs. ITO 5(3)(1), Mumbai

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

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 4463/Mum/2016 ("नधा"रण वष" / Assessment Year : 2009-10) M/S Ratnagiri Stainless Pvt. Income Tax Officer 5(3)(1), बनाम/ Ltd., Mumbai. V. 21/23, Laxmi Niwas, 2 Nd Parsiwada Lane, Opp V.P. Road Police Station, Mumbai – 400 004. "थायी लेखा सं./Pan : Aadcr2993P (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

…in-fact was purchased from grey market at lower price which led to higher margin of profits which need to be estimated and added to the income of the assessee. The AO relied upon decision of ITAT, Ahmedabad in the case of Vijay Proteins Limited v. ACIT (1996) 58 ITD 428(Ahd.) and other decisions. Thus, the A.O. made gross profit additions @ 12.5% over the total purchases of Rs. 2,39,83,261/- which was held to be non-genuine , which addition came to Rs. 29,97,908/-, vide assessment order dated 20-01-2015 passed by learned AO u/s 143(3) of 1961 Act. 5. Aggrieved by the assessment order dated 20-1-2015 passed by th…

ACIT Cir 27(1), Navi Mumbai vs. Jayesh Nagardas Bodatra, Mumbai

In the result, both, the appeals of Revenue and the Cross Objections of assessee, are dismissed

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

…f the undisclosed purchases held to have been made in cash and the entire purchases also cannot be disallowed. However, the profit margin embedded in such amounts of purchases would be disallowed and subjected to tax. 2.20. In the case of Vijay Proteins Ltd. 58 ITD 428, Hon'ble ITAT Ahmedabad 'C' Bench, under similar circumstances, where the A.O had disallowed the entire expenditure on account of purchases made from certain parties treating the same as bogus, has held that "it is an elementary rule of accountancy as well as of taxation law Page 4 of 7 ITA No.2994 & 2995/Mum/2015 CO No. 219 & 220/Mum/2016 Jayes…

Metropolitan Eximchem Ltd., Mumbai vs. Asst. CIT - 6(3), Mumbai

In the result, ground No 3 in assessee’s appeal is allowed

Bench: Shri D.T. Garasia, Jm & Shri Rajesh Kumar, Am

…milar view in the case of CIT v. Vijay M. Mistry Construction Ltd. [2013] 355 ITR 498 (Guj) and in the case of CIT v. Bholanath Poly Fab (P.) Ltd. [2013] 355 ITR 290 (Guj). The view taken by the Tribunal in the case of Vijay Proteins Ltd. v. Asstt. CIT [1996] 58 ITD 428 (Ahd.) came to be approved. If the entire purchases were wholly bogus and there was a finding of fact on record that no purchases were made at all, counsel for the Revenue would be justified in arguing that the entire amount of such bogus purchases should be added back to the income of the assessee. Such were the facts in the case of Pawanraj B. B…

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

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “D”, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER : (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 : 28/0…

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

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “D”, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER : (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 : 28/0…

Asst CIT 14(1)(1), Mumbai vs. Batliboi Environmental Enginnering Ltd, Mumbai

In the result, both the appeals of Revenue and that of the assessee for A

Bench: Shri Jason P. Boaz & Shri Sanjay Gargm/S. Batliboi Environmental D C I T – 14(1)(1) Engineering Ltd. 5Th Floor, Aayakar Bhavan 25/26, Deonar Ancillary Indl. Vs. M.K. Road, Mumbai 400020 Estate. Deonar, Govandi (W) Mumbai 400043 Pan – Aaach1091B Appellant Respondent A C I T – 14(1)(1) M/S. Batliboi Environmental Room No. 460, 4Th Floor Engineering Ltd. Aayakar Bhavan, M.K. Road Vs. 25/26, Deonar Ancillary Indl. Mumbai 400020 Estate. Deonar, Govandi (W) Mumbai 400043 Pan – Aaach1091B Appellant Respondent

…in Tax Appeal No. 1090 of 2009 and in case of Commissioner of Income Tax-I vs. Bholanath Poly Fab Pvt. Ltd. vide order dated 23.10.2012 passed in Tax Appeal No. 63 of 2012. The view taken by the Tribunal in case of Vijay Proteins Pvt. Ltd. Vs. CIT reported in 58 ITD 428 came to be approved. If the entire purchases were wholly bogus and there was finding of fact on record that no purchase were made at all, counsel for the revenue would be justified in arguing that the entire amount of such bogus purchases should be added back to the income of the assessee. Such were the facts in case of ACIT (OSC) Ward 5(3) Nadiad…