Income Tax Appellate Tribunal - Panji
Dcit Cir 6(2)(1), Mumbai vs Della Tecnica Interior Design P. Ltd, ... on 6 September, 2017
ITA No 196/Mum/2017 Della Tecnica Interior Design Private Limited Assessment Year 2009-10 आयकर अपीलीय अिधकरण "ए" ायपीठ मुं बई म ।
IN THE INCOME TAX APPELLATE TRIBUNAL "A" BENCH, MUMBAI ी डी.टी. गरािसया, ाियक सद एवं ी मनोज कुमार अ वाल, लेखा सद के सम ।
BEFORE SHRI D.T. GARASIA, JM AND SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./I.T.A. No. 196/Mum/2017 (िनधा रण वष / Assessment Year: 2009-10) Deputy Commissioner of Della Tecnica Interior Income Tax Design Private Limited Circle 6(2)(1),Room No.563 बनाम/ 781, Parsi Colony, Aaykar Bhavan Vs. N.M.Joshi Marg M.K.Road, Churchgate Khodabad Circle Mumbai- 400 020 Mumbai -400 017 थायी ले खा सं . /जीआइआर सं . /PAN/GIR No. AABCD-2765-K (अ पीलाथ" /Appellant) : (#$थ" / Respondent) Assessee by : None Revenue by : Saurabh Deshpande, Ld. DR सुनवाई की तारीख / : 21/08/2017 Date of Hearing घोषणा की तारीख / : 06/09/2017 Date of Pronouncement आदे श / O R D E R Per Manoj Kumar Aggarwal (Accountant Member)
1. The captioned appeal by Revenue for Assessment Year [AY] 2009- 10 assails the order of Ld. Commissioner of Income Tax (Appeals)-12 2 ITA No 196/Mum/2017 Della Tecnica Interior Design Private Limited Assessment Year 2009-10 [CIT(A)], Mumbai dated 03/11/2016 qua deletion of certain additions on account of bogus purchases for Rs.3,56,16,927/-. None has appeared on behalf of assessee despite service of notice and no adjournment application is on record. Left with no option, we proceed to dispose-off the appeal on the basis of material available on record and after hearing Ld. departmental representative.
2.1 Briefly stated the assessee being resident corporate assessee engaged as interior decorator & real estate developers, was subjected to an assessment u/s 143(3) read with Section 147 for impugned AY on 30/03/2015 at Rs.13,43,44,480/- after addition of bogus purchases for Rs.3,56,16,927/-. The original return was filed at Rs.9,87,27,549/- on 30/09/2009, which was assessed at the same figures in scrutiny assessment u/s 143(3).
2.2 The reassessment proceedings were initiated upon receipt of certain information from Sales Tax Department, Maharashtra regarding dealers indulging in bogus purchases bills and it was noted that the assessee stood beneficiary of such bogus purchase bills to the tune of Rs.3,56,16,927/- from twenty five parties. Consequently, notice u/s 148 dated 20/03/2014 was issued which was followed by statutory notice u/s 143(2) / 142(1).
2.3 To confirm the purchase transactions, notices u/s 133(6) was issued to the alleged bogus supplier, however, the same could not be served as per inspector's report. The assessee, in support, produced ledger extracts, purchase bills, payment details, Bank statements etc. and contended that the purchases were genuine. However, Ld. AO noted that the assessee could not produce transportation receipts to 3 ITA No 196/Mum/2017 Della Tecnica Interior Design Private Limited Assessment Year 2009-10 prove actual delivery of material, confirmation from the alleged suppliers and could not produce any party for confirmation of the transaction. It was further noted that these parties admitted to have indulged in issuance of accommodation billing before sales tax authorities. Finally, not convinced with the assessee's contentions / submissions, Ld. AO treated the same as bogus purchases and added the same to the income of the assessee.
3. Aggrieved, the assessee contested the same with success before Ld. CIT(A) vide impugned order dated 03/11/2016 where Ld. CIT(A) noted that the sales reflected by the assessee has been accepted and therefore the impugned additions were not justified. Reliance was placed on several judicial pronouncements. Aggrieved, the revenue is in further appeal before us.
4. The Ld. Departmental Representative [DR] drew our attention to the fact that notices u/s 133(6) could not be served since none of the party was found at the given address. Further, the assessee could not establish delivery / consumption of material before Ld. AO and therefore, the additions were justified. It was further contended that the onus to substantiate the purchases squarely lied on the assessee and mere payment through banking channels was not sufficient to prove the same since no confirmations etc. was filed by the assessee before lower authorities and none of the parties could be produced for confirmation of purchases.
5. Heard and perused relevant material on record. We are of the considered opinion that there could be no sale without purchase / consumption of material since assessee was engaged as real estate 4 ITA No 196/Mum/2017 Della Tecnica Interior Design Private Limited Assessment Year 2009-10 developers, which is material intensive. The sales turnover achieved by the assessee has not been disputed by the revenue and the payments were through banking channels. At the same time, the assessee could not produce any confirmations from any of the 25 alleged bogus suppliers and further notices u/s 133(6) could not be served due to non- availability of any of the party at the given address, which cast serious doubt on assessee's claim. The assessee could not produce any evidence to substantiate actual delivery of material. Therefore, in such a situation, the addition, which could be made, was to account for profit element embedded in these purchase transactions to factorize for profit element earned by assessee against possible purchase of material in the grey market and undue benefit of VAT against bogus purchases. We estimate the same @8% keeping in view the assessee's nature of business and overall facts of the case. Accordingly, we sustain the addition to the extent of 8% of bogus purchases of Rs.3,56,16,927/- which comes to Rs.28,49,354/-.
6. Resultantly, the revenue's appeal stands partly allowed.
Order pronounced in the open court on 06th September, 2017.
Sd/- Sd/-
(D.T. Garasia) (Manoj Kumar Aggarwal)
ाियक सद / Judicial Member लेखा सद / Accountant Member मुंबई Mumbai; िदनां क Dated : 06. 09.2017 Sr.PS:- Thirumalesh 5 ITA No 196/Mum/2017 Della Tecnica Interior Design Private Limited Assessment Year 2009-10 आदे श की ितिलिप अ !े िषत/Copy of the Order forwarded to :
1. अपीलाथ" / The Appellant
2. #$थ" / The Respondent
3. आयकर आयु,(अपील) / The CIT(A)
4. आयकर आयु, / CIT - concerned
5. िवभागीय #ितिनिध, आयकर अपीलीय अिधकरण, मुंबई / DR, ITAT, Mumbai
6. गाड/ फाईल / Guard File आदे शानुसार/ BY ORDER, उप/सहायक पं जीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, मुंबई / ITAT, Mumbai