Income Tax Appellate Tribunal - Mumbai
Dcit,Cc-3(2),Cr-3, Mumbai vs Cms Computers Ltd., Mumbai on 3 April, 2019
1 ITA No.4231/Mum/2017 M/s. CMS Computers Ltd.
Assessment Year :2009-10 आयकर अपीलीय अिधकरण "सी" ायपीठ मुंबई म ।
IN THE INCOME TAX APPELLATE TRIBUNAL "C" BENCH, MUMBAI माननीय ी महावीर िसं ह, ाियक सद एवं माननीय ी मनोज कुमार अ वाल ,ले खा सद के सम ।
BEFORE HON'BLE SHRI MAHAVIR SINGH, JM AND HON'BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ I.T.A. No.4231/Mum/2017 (िनधा रण वष / Assessment Year:2009-10) DCIT-CC-3(2) M/s. CMS Computers Ltd.
Room No.1913, 19 t h Floor बनाम/ C/o. Kaycee Ind. Compound,
Air India Building Vs. 70-Lake Road
Nariman Point, Mumbai-21. Bhandup-(W ), Mumbai-78.. थायीले खासं ./जीआइआरसं ./PAN/GIR No. AAACC-1758-Z (अ पीलाथ!/Appellant) : ("#थ! / Respondent) Appellant by : Abhi Rama Kartikeyan - Ld.DR Respondent by : None सुनवाई की तारीख/ : 20/03/2019 Date of Hearing घोषणा की तारीख / : 03/04/2019 Date of Pronouncement आदे श / O R D E R Per Manoj Kumar Aggarwal (Accountant Member)
1. Aforesaid appeal by revenue for Assessment Year [in short referred to as 'AY'] 2009-10 contest the order of Ld. Commissioner of Income- Tax (Appeals)-51, Mumbai, [in short referred to as 'CIT(A)'], Appeal No. CIT(A)-51/IT-62/2015-16 dated 22/03/2017 qua certain relief provided to the assessee on account of alleged bogus purchases. None has appeared for assessee and no valid adjournment application is on record. Left with no option, we proceed to dispose-off the same on the basis of material on record and after hearing Ld. Departmental 2 ITA No.4231/Mum/2017 M/s. CMS Computers Ltd.
Assessment Year :2009-10 Representative [DR] who justified the impugned additions as made by Ld. AO.
2.1 Facts on record reveal that the assessee being resident corporate entity stated to be engaged in the business of trading in biometrics attendance and access control systems etc. was subjected to reassessment proceedings u/s 143(3) read with Section 147 on 30/03/2015 by Ld. Assistant Commissioner of Income Tax - 3(2), Mumbai [AO] wherein the assessee was saddled with additions of Rs.78.38 Lacs on account of alleged bogus purchases. The original return filed on 30/09/2009 was assessed in scrutiny assessment u/s 143(3) on 27/12/2011.
2.2 The reassessment proceedings got triggered pursuant to receipt of certain information from DGIT (Investigation) & Sales Tax Department, Maharashtra that the assessee stood beneficiary of accommodation purchase bills aggregating to Rs.78.48 Lacs from 6 entities, the details of which have already been extracted at para 2 of the quantum assessment order. Accordingly, statutory notices u/s 148 / 143(2) & 142(1) were issued against the assessee wherein the assessee was directed to substantiate the purchase transactions. 2.3 Notices issued u/s 133(6) against all the suppliers, to confirm the transactions, did not elicit satisfactory response and the field inquiries revealed that none of the party existed at the given address. The assessee defended the same on the strength of copies of invoices, bank statements, quantitative stock statements etc. but failed to substantiate the delivery of material with documentary evidences like delivery challans, octroi receipts etc. The assessee also failed to provide latest 3 ITA No.4231/Mum/2017 M/s. CMS Computers Ltd.
Assessment Year :2009-10 addresses of the suppliers. The factual matrix led the Ld. AO to treat the purchases as non-genuine and accordingly, the same were disallowed.
3. Aggrieved, the assessee agitated the reassessment proceedings on legal grounds without any success before Ld. first appellate authority vide impugned order dated 22/03/2017. However, on merits, the quantum additions were reduced to 12.5% of alleged bogus purchases. Aggrieved, the revenue is in further appeal before us.
4. We have carefully heard the rival submissions and perused relevant material on record. We are of the considered opinion that there could be no sales without actual purchase of material. The sales turnover reflected by the assessee has been accepted by the revenue. The payments of the supplies have been made by the assessee through banking channels. The assessee was in possession of primary purchase documents. However, at the same time, the delivery of material could not be substantiated and the assessee failed to produce any of the supplier to confirm the transactions. Under the given factual matrix, the full disallowance was not justified but only some reasonable estimate was adequate so as to plug the revenue leakage on account of possible purchase of the material from the grey market and profit element embedded in these transactions, which Ld. first appellate authority has rightly done. Therefore, we do not find any infirmity in the same.
5. Resultantly, the appeal stands dismissed.
Order pronounced in the open court on 03rd April, 2019.
Sd/- Sd/-
(Mahavir Singh) (Manoj Kumar Aggarwal)
ाियक सद / Judicial Member ले खा सद / Accountant Member मुंबई Mumbai; िदनां क Dated : 03/04/2019 Sr.PS, Jaisy Varghese 4 ITA No.4231/Mum/2017 M/s. CMS Computers Ltd.
Assessment Year :2009-10 आदे शकी"ितिलिपअ$ेिषत/Copy of the Order forwarded to :
1. अपीलाथ!/ The Appellant
2. "#थ!/ The Respondent
3. आयकरआयु*(अपील) / The CIT(A)
4. आयकरआयु*/ CIT- concerned
5. िवभागीय"ितिनिध, आयकरअपीलीयअिधकरण, मुंबई/ DR, ITAT, Mumbai
6. गाड/ फाईल / Guard File आदे शानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकरअपीलीयअिधकरण, मुंबई / ITAT, Mumbai.