Income Tax Appellate Tribunal - Mumbai
Acit 19(2), Mumbai vs Maheshkumar D Chandak, Mumbai on 12 April, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL "SMC" BENCH, MUMBAI
BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER
ITA No.3154/M/2016 (AY 2009-2010)
ACIT-19(2), फनाभ/ Maheshkumar D. Chanda
Mumbai. (Prop. Hi Tech Metal &
Vs.
Tubes), 102/104, Praveen
House, 2 n d Floor, 1 s t Pathan
Street, 4 t h Kumbharwadi,
Mumbai - 400 004.
स्थामी रेखा सं ./ PAN : ACYPC2181J
(अऩीराथी /Appellant) .. (प्रत्मथी / Respondent)
अऩीराथी की ओय से / Appellant by : Ms. Beena Santosh, DR
प्रत्मथी की ओय से/ Respondent by : None
सन
ु वाई की तायीख / Date of Hearing : 20.03.2017
घोषणा की तायीख /Date of Pronouncement : 12 .04.2017
आदे श / O R D E R
PER D. KARUNAKARA RAO, AM:
This appeal filed by the Revenue on 4.5.2016 is against the order of the CIT (A)-30, Mumbai dated 19.02.2016 for the assessment year 2009-2010.
2. The only issue raised in this appeal relates to the deletion of bogus purchases and restricting the addition to 12.1% of the said purchases. Briefly stated relevant facts of the case are that the AO made addition of Rs. 32,68,914/- u/s 69C of the Act. These purchases are said to be from the parties whose names are appeared in the official website of the Sales Tax Department. Matter travelled to the first appellate authority.
3. During the proceedings before the first appellate authority, CIT (A) restricted the addition to 12.1% of the said bogus purchases. Aggrieved with the same, Revenue is in appeal before the Tribunal.
4. During the proceedings before the Tribunal, none appeared to represent the case of the assessee. However, Ld DR for the Revenue mentioned that this is a case 2 where the CIT (A) restricted the addition to net GP of 12.1%. Ld DR relied on the order of the AO.
5. After hearing the Ld DR and on perusal of the orders of the Revenue Authorities as well as the relevant material placed before the Tribunal, I find, the CIT (A) has taken a fair view and the same is in tune with the settled legal position of the issue by virtue of the judgment of the Hon'ble Gujarat High Court in the case of CIT vs. Simit P. Sheth, ITA No. 553 of 2012, dated 16.1.2013 read with the judgment of the Hon'ble jurisdictional High Court in the case of Nickunj Eximp Enterprises Pvt Ltd vs. ACIT vide Writ petition No. 2860 of 2012, dated 18 th June, 2014 wherein restricting the addition to the GP rate of 12.5% is approved. Considering the same I am of the view the order of the CIT (A) with GP rate of 12.10% is fair and reasonable and it does not call for any interference. Accordingly, grounds raised by the Revenue are dismissed.
6. In the result, appeal of the Revenue is dismissed.
Order pronounced in the open court on 12th April, 2017.
Sd/-
(D. KARUNAKARA RAO)
ACCOUNTANT MEMBER
भुंफई Mumbai; ददनांक 12.04.2017
व.नन.स./ OKK , Sr. PS
आदे श की प्रतिलऱपि अग्रेपिि/Copy of the Order forwarded to :
1. अऩीराथी / The Appellant
2. प्रत्मथी / The Respondent.
3. आमकय आमुक्त(अऩीर) / The CIT(A)-
4. आमकय आमुक्त / CIT
5. ववबागीम प्रनतननधध, आमकय अऩीरीम अधधकयण, भुंफई / DR, ITAT, Mumbai
6. गार्ड पाईर / Guard file.
सत्मावऩत प्रनत //True Copy// आदे शानुसार/ BY ORDER, 3 उि/सहायक िंजीकार (Dy./Asstt. Registrar) आयकर अिीऱीय अधिकरण, भुंफई / ITAT, Mumbai