Income Tax Appellate Tribunal - Mumbai
Shreeji Traders , Mumbai vs Dy Cit-Cc-1, Mumbai on 29 September, 2021
आयकर अपीलीय अधिकरण "SMC" न्यायपीठ मुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL " SMC" BENCH, MUMBAI श्री भहावीय स हिं , उऩाध्मक्ष के भक्ष ।
BEFORE SRI MAHAVIR SINGH, VICE PRESIDENT Aayakr ApIla saM . / ITA No. 2008/Mum/2020 (inaQa- a rNa baYa- / Assessment Year 2010-11) Shreeji Traders The Dy. Commissioner of LIC building Near Canara Bank Vs. Income Tax, Central Circle-1 Karnik Road, Kalyan0421301 Thane (ApIlaaqaI- / Appellant) .. (p`%yaqaaI- / Respondent) स्थामी रेखा िं . / PAN No. AAEFS4020J अऩीराथी की ओय े / Appellant by : None प्रत्मथी की ओय े / Respondent by : Smt. Smita Verma, DR सनवाई की तारीख / Date of hearing: 29.09.2021 घोषणा की तारीख / Date of pronouncement : 29.09.2021 AadoSa / O R D E R भहावीय स हिं , उऩाध्मक्ष के द्वाया / PER MAHAVIR SINGH, VP:
This appeal of the assessee is arising out of order of the Commissioner of Income Tax (Appeals)]-1, Pune [in short CIT(A)], in appeal No. CIT(A), Pune-11/10176/2015-16 vide dated 20.08.2020. The Assessment was framed by the Dy. Commissioner of Income Tax, Circle 1, Thane (in short DCIT/ AO) for the A.Y. 2010-11 vide order dated 02.02.2015 under section 143(3) read with section 147 of the Income-tax Act, 1961 (hereinafter 'the Act').
2. When this appeal was called for hearing, none was present from assessee. As seen the nature of additions made and grounds of appeal raised, the matter is heard.
2 ITA No. 2008/ Mum/2020Shreeji Traders; AY 10-11
3. The only issue in this appeal of assessee is as regards to the order of CIT(A) upholding the addition of ₹77,832/- treating the purchase made from Kameshwar Trading P. Ltd. as bogus. For this assessee, has raised the following ground No.2:-
"2. Without prejudice to the above he has erred in law nd on facts in upholding addition of ₹ 77,832/- treating the said purchase from Kameshwar Trading P. ltd. As bogus without considering and appreciating the facts of the appellant."
4. I have heard the learned Sr. Departmental Representative and gone through the facts and circumstances of the case. I find from the orders of the lower authorities that the assessee is beneficiary of hawala bill issued by hawala operators found out by Maharashtra Sales Tax Department during the search conducted on several dealers and beneficiaries. The assessee has taken bills from Kameshwar Trading P. Ltd. amounting to ₹77,832/-. The assessee submitted the bills and vouchers but could not submit the delivery challan as the material was purchased by assessee. But I find that none of the authorities below have doubted the sales made out of this purchase and hence, it cannot be said that the assessee has not made sales. The assessee might have procured bills and made purchases from grey market for gaining some profit. Hence, I estimate the profit at the rate of 12.5 % of the bogus purchases of ₹77,832/- . I direct the Assessing Officer to restrict the disallowance at 12.5% of the bogus purchases accordingly.
3 ITA No. 2008/ Mum/2020Shreeji Traders; AY 10-11
5. The ground relating to levy of interest under section 234B of the Act is a consequential and accordingly, the Assessing Officer will recompute the same.
6. In the result, the appeal of assessee is partly allowed.
Order pronounced in the open court on 29.09.2021.
Sd/-
(भहावीय स ह िं /MAHAVIR SINGH) (उऩाध्मक्ष / VICE PRESIDENT) भिंफई, ददनािंक/ Mumbai, Dated: 29.09.2021 सुदीप सरकार, व.निजी सचिव / Sudip Sarkar, Sr.PS आदे श की प्रनिलऱपप अग्रेपषि/Copy of the Order forwarded to :
1. अऩीराथी / The Appellant
2. प्रत्मथी / The Respondent.
3. आमकय आमक्त(अऩीर) / The CIT(A)
4. आमकय आमक्त / CIT
5. ववबागीम प्रतततनधध, आमकय अऩीरीम अधधकयण, भिंफई / DR, ITAT, Mumbai
6. गार्ड पाईर / Guard file.
आदे शािुसार/ BY ORDER, त्मावऩत प्रतत //True Copy// उप/सहायक पंजीकार (Asstt. Registrar) आयकर अपीऱीय अचिकरण, भिंफई / ITAT, Mumbai