“bogus purchases”

Tarlika K Shah, Mumbai vs. Income Tax Officer 31(3)(2), Mumbai

In the result, the appeal of the assessee is allowed

Bench: Shri Rajesh Kumar & Shri Pavan Kumar Gadaletarlika K. Shah Ito Ward – 31(3)(2) 704, Anmol Pride, Opp. Mumbai. बनाम/ बनाम बनाम बनाम Patel Petrol, Off S. V. Vs. Road, Near Hyundai Show Room, Goregaon (W), Mumbai – 400104. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Abhps3701Q (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

Tarlika K. Shah 271 (1)(c) for furnishing inaccurate particulars of income on the disallowance of bogus purchases of Rs. 5,22,057/-. The appellant therefore prays that the penalty levied u/s. 271 (1)(c) of Rs. 1,34,980/- being unjustified, unwarranted and bad-in-Iaw be deleted ... processed under section 143(1) of the Act. Subsequently, the A.O received information from DGIT (Inv) Mumbai that the assessee has entered into bogus purchases transactions from certain persons,who provides bogus bills as per the information of Sales Tax Department, Government of Maharashtra and assessee

ITO 19(2)(5), Mumbai vs. Pratapchand Prabhuji Purohit, Mumbai

In the result, both the appeals by Revenue are dismissed

Bench: Shri Vikas Awasthyआयकर अपील सं./ Ita No. 3774/Mum/2019 (यिर्ाारण िर्ा / Assessment Years 2009-10) & आयकर अपील सं./ Ita No. 3775/Mum/2019 (यिर्ाारण िर्ा / Assessment Years 2010-11)

basis of information received by DGIT (Inv), Mumbai from Sale Tax Department, Government of Maharashtra that the assessee has indulged in obtaining bogus purchase bills to the tune of ₹70,26,403/- from notified hawala dealers. In reassessment proceedings, the Assessing Officer concluded that the assessee is in practice ... purchasing goods from grey market and thereafter obtaining bogus purchase bills from entry providers. Since, the sales made by the assessee were not disputed, the Assessing Officer estimated Gross Profit at the rate of 12.5% on bogus purchases and made addition of ₹8,78,300/-. Aggrieved by the assessment order

DCIT Cirlce-3, Thane vs. Shri. Shreekumar Janardan Unnithan, Thane

In the result these appeals filed by the revenue stand dismissed

revenue wherein the revenue is aggrieved that Learned Commissioner of Income Tax (Appeals) [in short learned CIT(A)] has reduced the addition for bogus purchase done @ 100% by Assessing Officer by sustaining only 16.78% & 18.47% respectively for the concerned assessment year. 2. The assessee in this case is engaged into ... assessment was reopened upon information from sales tax department that assessee has made purchases from bogus dealers. The Assessing Officer made addition of the bogus purchases as under @ 100% :- A.Y. Rs. 2011-12 Rs. 14,86,652/- 2009-10 Rs. 3,71,540/ 2 Shri Sreekumar Janardhan Unnithan The Assessing

DCIT, Circle - 1, Thane vs. M/S Ashida Electronics Pvt. Ltd, Thane

Bench: Shri Rajesh Kumar & Shri Ravish Sooddy. Commissioner Of Income M/S Ashida Electronics Pvt. Ltd. Tax, Circle-1, Thane, Ashida House, Plot No.A-308, 6Th Floor, Ashar It Park, Road No.21, Wagle Estate, Vs. B Wing, Wagle Industrial Estate, Thane West-400604 Thane-400604

penalty levied u/s 271(1)(c) without appreciating the fact that there was a definite finding in the assessment order in respect of bogus purchases and of furnishing inaccurate particulars of income relating to purchases resulting into concealment of income. 3. Whether on the facts and in the circumstances ... justified in deleting the penalty levied u/s 271(1)(c) without appreciating the fact that there was an admission of additional income in respect bogus purchases during the survey u/s 133A and the admission of additional income was not a voluntary admission by the assessee

ITO 27(1)(4), Mumbai vs. Dilip C.Mehta, Mumbai

In the result this appeal filed by the revenue stands dismissed

Bench: The Itat. I Have Heard Learned Departmental Representative & Perused The Records. I Find That In 2 Shri Dilip C. Mehta

revenue wherein the revenue is aggrieved that Learned Commissioner of Income Tax (Appeals) [in short learned CIT(A)] has reduced the addition for bogus purchase of Rs. 7,020/- done @ 100% by Assessing Officer by sustaining only 12.5%. 2. The assessee in this case is and individual. The assessment ... information from sales tax department that assessee has made Rs. 7,020/- purchases from bogus dealers. The Assessing Officer made 100% addition of the bogus purchases. 3. Upon the assessee’s appeal learned CIT(A) has noted that the sales have not been doubted. Accordingly, placing reliance upon several case

Mohd Ismail I A Shaikh, Mumbai vs. ITO 26(3)(4), Mumbai

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

Bench: Shri Vikas Awasthy & Shri Rajesh Kumarassessment Year: 2009-10 M/S. Mohd. Ismail I.A. Ito 26(3)(4) Shaikh, Mumbai (Prop. Sarco Wire Traders) Shop No.21, 4Th Lane, Vs. Taar Bazar, Kurla Andheri Road, Sakinaka, Mumbai – 400 072 Pan: Akhps5579E (Appellant) (Respondent) Present For: Assessee By : None Revenue By : Shri Akhtar H. Ansari, D.R. Date Of Hearing : 01.10.2020 Date Of Pronouncement : 27.10.2020 O R D E R

respond to the said show cause notice. Finally, assessment was framed under section 144 read with section 147 of the Act by adding entire bogus purchases to the income of the assessee. 5. In the appellate proceedings, the Ld. CIT(A) partly allowed the appeal of the assessee by sustaining ... addition to the extent of 25% of the bogus purchases thereby confirming Rs.12,80,322/- by following the decisions of the Hon’ble Gujarat High Court in the case of CIT vs. Simit P. Sheth (2013) 356 ITR 451 (Guj) , CIT vs. Vijay M. Mistry Construction

ITO 28(2)(5), Mumbai vs. M/S Ridhhi Siddhi Industries, Mumbai

In the result this appeal filed by the revenue stands dismissed

Bench: The Itat. I Have Heard Both The Parties & Perused The Record. I Find That In This Case The Sales Or 2 M/S. Riddhi Siddhi Industries

revenue wherein the revenue is aggrieved that Learned Commissioner of Income Tax (Appeals) [in short learned CIT(A)] has reduced the addition for bogus purchase 23,32,804/- @ 100% by the Assessing Officer by sustaining only 12.5% vide order dated 20.3.2019 for A.Y. 2011-12. 2. The assessee in this ... information from sales tax department that assessee has made Rs. 23,32,804/- purchases from bogus dealers. The AO made 100% addition of the bogus purchase. 3. Upon assessee's appeal learned CIT-A has noted that the sales has not been doubted. Accordingly placing reliance upon several case laws

Income Tax Officer 17(2)(3), Mumbai vs. M/S.Manilal Sanghvi (Bombay), Mumbai

In the result, appeal of the revenue is dismissed

Bench: Shri Vikas Awasthy & Shri Rajesh Kumarआअसं. 1199/मुं/2019 (िन. व. 2009-10) Ito 17(2)(3), Room No.123B, 1St Floor, Aayakar Bhavan, Mumbai 400003 ...... अपीलाथ- /Appellant बनाम Vs. M/S Manilal Sanghvi (Bombay) 158/160, Narayan Dhuru Street, Masjid Bunder, Mumbai-400003. ..... .ितवाद"/Respondent Pan: Aaafm2359N

Maharashtra, the assessment for A.Y. 2009-10 in the case of assessee was re-opened. As per the information received, the assessee had obtained bogus purchase bills to the tune of Rs. 17,20,831/- from suspicious dealers. The Assessing Officer in assessment proceedings held that the assessee could ... parties from whom purchases were made and the documents to prove trail of goods allegedly purchased. The Assessing Officer estimated gross profit @ 12.5% on bogus purchases and made addition of Rs. 2,15,103/-. Aggrieved by the assessment order dated 22.09.2014 passed under section 143(3) r.w.sec

ITO, 32(1)(5), Mumbai vs. Fourint Chemical Industries, Mumbai

In the result this appeal filed by the revenue stands dismissed

revenue wherein the revenue is aggrieved that Learned Commissioner of Income Tax (Appeals) [in short learned CIT(A)] has reduced the addition for bogus purchase of Rs. 2,49,783/- done @ 100% by Assessing Officer by sustaining only 12.5% and thus restricting the disallowance ... from sales tax department that assessee has made Rs. 2,49,783/- purchases from bogus dealers. The Assessing Officer made 100% addition of the bogus purchases. 3. Upon the assessee’s appeal learned CIT(A) has noted that the sales have not been doubted. Accordingly, placing reliance upon several case

Shri. Jitendra S Patel, Mumbai vs. ITO 27(1)(5), Mumbai

In the result, appeal of the assessee is dismissed

Bench: Shri Vikas Awasthyआअसं. 2455/मुं/2019 (िन.व.2009-10) Shri Jitendra S. Patel Ito-27(1)(5) 4Th Floor, Tower No.6, 202, Jolly Apartment Co-Op Hsg Soc, बनाम / Kiral Road, Ghatkopar (W), Vashi Railway Complex, Vs. Mumbai-400086 Vashi- 400703. Pan/Gir No: Aaapp5525F (अपीलाथ"/Appellant) (""थ" : / Respondent)

Assessment Year 2009-10 in the case of the assesssee was re-opened on the ground that the assessee has indulged in obtaining bogus purchase bills from hawala dealers declared by Maharashtra Government. The Assessing Officer in the 2 assessment proceedings made addition ... Income Tax Act, 1961 (hereinafter refered to as ‘the Act’) in respect of bogus purchases. The addition was made on the basis of combined peak credit standing in the name of hawala dealers. Aggrieved against the assessment order dated 27.03.2015 passed under section 143(3) r.w.sec

Clonto Lobo, Mumbai vs. ITO Range 30(1)(2), Mumbai

In the result, appeal of the assessee is partly allowed

Bench: Shri Vikas Awasthyआअसं. 2448/मुं/2019 (िन.व.2010-11) Clonto Lobo Ito-30(1)(2) 21, Shreepal Services Industrial Room No. 505, C-13, 5Th Floor, Pratyakshkar Bhavan, Estate, Pavanbaug, Chincoli, बनाम / Malad (W), Mumbai-400054 Bkc, Bandra (E), Vs. Mumbai-400051. Pan/Gir No: Aabpl6175E (अपीलाथ"/Appellant) (""थ" : / Respondent)

case of assessee was re- 2 opened on the basis of information received by DGIT (Investigations) that the assessee has indulged in obtaining bogus purchase bills aggregating to Rs. 5,30,994/- from hawala dealers. The Assessing Officer in the re-assessment proceedings estimated Gross Profit @ 18.86% on unproved purchases ... made addition of Rs. 95,820/- on account of bogus purchases. Aggrieved by the assessment order dated 29.01.2016 passed under section 143(3) r.w.sec. 147 of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’), the assessee filed appeal before the CIT(A). The First Appellate Authority (FAA) held

ACIT 24 (2), Mumbai vs. Mohd. Rafiq Navlakhiya, Mumbai

In the result, appeal of the revenue is dismissed

Bench: Shri Vikas Awasthy & Shri Rajesh Kumarआअसं. 893/मुं/2019 (िन. व. 2010-11) The Acit 24(2), Room No.613, 6Th Floor, Piramal Chambers, Lalbaug, Parel, Mumbai 400012 ...... अपीलाथ- /Appellant बनाम Vs. Mohd. Rafiq Navlakhiya 401, June Apartments, Gautam Lane-2, Andheri (W), Mumbai-400058. ..... .ितवाद"/Respondent Pan: Acqpn5792

information received from Maharashtra Sales Tax Department the assessment for A.Y. 2010-11 was re-opened on the ground that the assessee has obtainined bogus purchase bills to the tune of Rs. 2,81,77,639/- from notified hawala dealers. The Assessing Officer estimated gross profit on bogus purchases ... fact of case and considering the average gross profit in the line of electronic trade restricted the addition to 8% gross profit on bogus purchases. Against the findings of CIT(A), the revenue is in appeal before the Tribunal. 3. Shri Vijay Jaiswal representing the department vehemently defended the assessment

ITO Ward 1 (4), Thane vs. M/S Lotus Dyes and Chemicals, Thane

The appeal of the revenue is dismissed

Bench: Shri Rajesh Kumar & Shri Ravish Soodita Nos.1298 & 1299/Mum/2019 (Assessment Years: 2009-10 & 2010-11)

penalty levied u/s 271(1)(c) without appreciating the fact that there was a definite finding in the assessment order in respect of bogus purchases and of furnishing inaccurate particulars of income relating to purchases resulting into concealment of income. 3. It is humbly requested that present appeal is being ... assessee. 4. Aggrieved, the assessee assailed the assessment order before the CIT(A). The CIT(A) scaled down the disallowance of 100% of impugned bogus purchases to 96% and restricted the disallowance to an amount of Rs.5,02,909/- instead of Rs.5,23,864/-. 5. The A.O after receiving

Ru-Met Corporation, Mumbai vs. ITO WD 19(3)(2), Mumbai

In the result, appeal of the assessee is partly allowed

Bench: Shri Vikas Awasthyआअसं. 6513/मुं/2018 (िन.व.2010-11) M/S Ru-Met Corporation, The Ito -19(3)(2) Matru Mandir, Tardeo, Shop No. 4/5, Janki Niwas, बनाम / Mumbai 400 007 Ground Floor, Khadilkar Road, Vs. Mumbai 400 004 Pan/Gir No:Aaefm7499M (अपीलाथ"/Appellant) (""थ" : / Respondent)

tune of Rs. 83,38,196/- from hawala operators. 2 In re-assessment proceeding, the Assessing Officer estimated gross profit on alleged bogus purchase bills @ 12.5% and made addition of Rs. 10,42,275/-. Aggrieved against the assessment order dated 17.03.2016 passed under section 143(3) r.w.sec ... order and prayed for dismissing the appeal of assessee. The ld. DR submitted that the Assessing Officer/CIT(A) have estimated reasonable gross profit on bogus purchases made by the Assessing Officer. 4. Submissions made by ld. DR heard and orders of the authorities below examined. The assessee is a trader

ITO 14(1)(1), Mumbai vs. M/S Apex Furnaces Pvt Ltd., Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Bleincome Tax Officer – 14(1)(1) V. M/S. Apex Furnaces Pvt. Ltd., Room No. 431, 4Th Floor 206, Krishna Bhavan Aayakar Bhavan Govandi Station Road, Deonar M.K. Road, Mumbai-400 020 Mumbai – 400 088 Pan: Aaac6001A

opened after obtaining necessary approval from higher authorities on receipt of information from State Government Sales tax authorities that the assessee is engaged in bogus purchase of an amount of Rs 2,45,696/- from various Traders who was proclaimed as a Hawala dealer issuing bogus purchase bills without actually ... engaged in issuing false bills without actual purchase/sale of goods and the information was the point of genesis for enquiry related to possible bogus purchases in a number of cases. The assessee stated that it submitted name, address of the supplier, the ledger account, cheque payment details, copies of purchase

ITO, 28(2)(5), Mumbai vs. M/S Raj Tools Centre, Navi Mumbai

In the result, appeals of the Revenue are dismissed

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

these purchases was to be disallowed. The Hon'ble Gujrat High Court in this case has held that profit margin of 12.5% of the bogus purchases will be reasonable. Respectfully following the Order in the case of Simit P. Sheth the addition is restricted to 12.5% of the bogus purchases

ITO 20 (1)(4), Mumbai vs. Dhaval Ajit Thoda, Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Bleincome Tax Officer – 20(1)(4) Shri Dhaval Ajit Thoda V. Room No. 112, 1St Floor Plot No. 441, Dayabhuvan Piramal Chambers, Lalbaug Shradhanand Road Parel, Mumbai - 400012 Behind Mahila Ashram Matunga, Mumbai – 400019 Pan: Abopt2540H (Appellant) (Respondent) Assessee By : None Department By Amrita Singh

purchases. However, the AO has not considered that the appellant has made sales corresponding to the said non-genuine purchases. In similar cases of bogus purchases, based on the information received from Sales tax authorities through the DGIT(Investigation), it has been held by various Courts that the profit element ... embedded in the bogus purchases may be taxed, considering that the purchases may have been made from the grey market. I find that in the appellant's own case for the subsequent Assessment year i.e. A.Y. 2010-11, on similar facts and on the basis of similar documentary evidences