Income Tax Appellate Tribunal - Mumbai
Income Tax Offficer 20(3) (1) , Mumbai vs M/S. Volga Innovations (Formerly Known ... on 11 August, 2022
IN THE INCOME TAX APPELLATE TRISUNAL MUMBAI BENCH "SMC", MUMBAI ASHANT MANARSNI {ACCOUNTANT MEMBER) & suit waves THA RAJAGOPAL CUGICIAL MEMBER) PLS fat ners "74 a 'eed vend pad ere wee x:
"6g eg toe ie 3 TA No 2405/6 um? At esarrient year > 200G-10) < Ha}, Murnbai Ww M/s Volga | innovations s (Formerly known as M/s VMI Enterprises} t Nas, Past Office Lane Dr. Anrbedkar Road, Near Dena Bank, Pare!, Mumbal4od 012 PAN : AAGFVITIGSR "
o APPELLANT 7 RESPONDENT ahi Himanshu Sharma GRRER THs appeal has been Nied by the Revenue as against the order of
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Learned Commissioner of income-tex (Appeals), National Faceless Appee! x Centre (NFAC) Oelhi dated 25/10/2081 passed under section 250) of the income-fan Act, 196d which emanates from the order of Assessi ing Officer sment year 2009- under section 14313) rw.s. 14? of the Act pertaining to a 13 é Pee grounds af agpeal are as follows:
ed whe P Oe the Poets ¢ aod in the circumstances ar the case, ane ctin restricting the addition to Rs. 2.7 L454?-
i surchase fgnaving the fact thot the Soles Tax cae, ast eee neon wwe vrere ram ed ° "
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i Sen oe boon ih ce f z which es & BN oy gs YS Rye QR ar NEAR i Las TTA No 2403 /Mum sons i S81} may Oe treated a5 the return filed in response to notice under section 2
148. Ro has to be noted that the Assessing Officer had 2, made addition « wherein the assessee wag said to be ur sable to produce any supporting evidence such as bills, transpart bills, lorry receipts, etc. to substantiate that the purchases were genuine and also the Assessing Officer hed! disallowed an armmaunt of 8sh45, 553%. as being 2558 af the balance amount of 8 s.iP,74,210/- as quantum of profit elernent on account of infletion of purchases. Agerieved by this, the assessee was in agpeal before the La CIT{Alwho deleted the addition of Rs. 3, 73,478,- on the ground that there was no evidence against the assessee having Incurred unexplained investment or unexplained expenditure of the impugned smount except in the information received fram the sales-tay department. The LoCITLA}) has also reduced / restricted the addition to Re, 71454). as being estimated GP ratio at 15.50% being assessee's previous ratie on the ground that there was no evidence seainst the assessee contrary to the allegation of the Assessing G¥ficer, The Revenue is in aapes! dbefare us on the ground of restricting the addition to Bs.3,71,.454/- on sccount 4, The ic. OR contended that the LdLCIT(A! had failed to appreciate the fact that the sales-tax department has proved the assessee had transaction with hawala traders invelyed in providing ancommodation entry and that see was one of the beneficiaries. The Ud.O8 further stated that the LcLCITLA} has fae to consider the decision of Hon'ble Gujarat High Court in the case of NLR. Proteins iid which was affirmed by the Hon'ble Apex Court in SEP No.CC 759 of 2007 dated TS/0./3017. The La OR stated that the order of the Ass Spe yes REE asa fa age Bay PEN & sssing Officer be sustained, 18 No sdOd/ Mama b S, Maving heard the Le DR and perused the materials on record before us, we find that the LeLcir¢A} has steted that the alleged bogus purchases of Rs.22,07 688). was reduced to 8s.3,73,478/- on the oretext that the assessee was Unabis to produce GIs or any other material evidence to substantiate the SaMe 8 ganuine surchases. Further to this, Ht is observed that the Assessing Officer has arrived at the estimated profit of 25% on the residual sum of Rely 4.210%. on the reasmn that the assessee should have obtained the Roods from grey market by evading tax resulting in lesser rate of purchases and with higher orofif margin. ff is also evident frary the record that the department has received information from Maharashtra Sales-tax department wherein vancus parties have issued sales bills without actual delivery of goods whereby out of two such parties, the assessee was found to have shown o ourchases, was also observed that the assessee has furnished documentary evidence and Gank statements showing purchases which are reflected in the haugh notices under section 13316) were Issued to the said uarties, they were returned unserved and the assessee was unable to oraduce the pariies before the lower authorities. The Assessing Officer psraceeded to genuineness of the purchases. Though the La CIT(A) has deleted the addition an account of bogus purchases fram Siddhi Enterprises on the ground thet there was no evidence against the assesses except information received from Sales-tan departiient, the Revenue has preferred an apoeal before us only an A) ceed the issue of reduction of higher profit margin @25% to 15.40%. The Lacon Nas not obiseied to the contentian of the assessee that 25% of profit margin wil raise the GP ratio to be high compared to previous year's GP ratia as it is seen that the assessee has already offered orevious year's GP ratio at 15.3086 Ss yer ke vot ee hes Os ey "ef f y wet a beers %, oy '£3 hed gery pers, Scat > $ NAR SS SS % sheet 3 i 4 f chews Seek Co oot bee £3 S Pireee ae :
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