Income Tax Appellate Tribunal - Mumbai
Ito 6 (1)(1), Mumbai vs M/S A J Coal Pvt Ltd., Mumbai on 10 June, 2021
आयकर अपील य अ धकरण
मुंबई पीठ "एस एम सी", मुंबई
ी वकास अव थी, या यक सद य के सम#
IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI BENCH "SMC", MUMBAI
BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER
आअसं. 5718/म/ंु 2019 ( न.व 2009-10)
ITA NO.5718/MUM/2019 (A.Y 2009-10)
Income Tax Officer-6(1)(1),
Room No.503, 5th Floor,
Aaykar Bhavan, M.K. Road,
Mumbai 400 020 ...... अपीलाथ) /Appellant
बनाम Vs.
M/s. A.J. Coal Pvt. Ltd.,
24A, Coal Depot,
Sewri (East), Mumbai 400 015.
PAN: AABCA 0386M ..... * तवाद /Respondent
अपीलाथ) ,वारा/Appellant by : Shri Sushil Kumar Mishra
* तवाद ,वारा/Respondent by : None
सन
ु वाई क- त थ/Date of hearing : 31/03/2021
घोषणा क- त थ/Date of pronouncement : 10/06/2021
आदे श/ORDER
This appeal by the Revenue is against the order of Commissioner of Income Tax (Appeals) -12, Mumbai [in short 'the CIT(A)'] dated 08/05/2019 for the assessment year 2009-10.
2. The assessee is a trader in coke and coal. During assessment proceedings, the Assessing Officer observed that the assessee has obtained accommodation entries aggregating to Rs.49,98,475/- from M/s. Sthapna Trade Impex Pvt. Ltd. during the 2 ITA NO.5718/MUM/2019 (A.Y 2009-10) period relevant to the assessment year under appeal. The Assessing Officer after examining the transaction with alleged hawala operator made addition of Rs.17,28,507/- based on peak credit. Aggrieved by the assessment order dated 28/11/2016 passed under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 (in short 'the Act'), the assessee filed appeal before the CIT(A). The CIT(A) restricted the addition to Rs.6,26,809/- by estimating profit margin on bogus purchases at 12.5%. Hence, the present appeal by the Revenue.
3. Submissions made by ld. Departmental Representative heard, orders of authorities below examined. Undisputedly, the assessee failed to discharge its onus in proving genuineness of purchases and the dealer. At the same time, the Assessing Officer has not disputed the sale turnover declared by the assessee. Therefore, in such like bogus transactions it is only the profit element embedded in such transactions that can be taxed. The assessee has furnished a chart before the First Appellate Authority tabulating G.P declared during the assessment years 2006-07 to 2010-11. In the impugned assessment year, the G.P declared by the assessee is 4.175%. Taking into consideration entire facts of the case, I am of considered view that the addition made by Assessing Officer on account of bogus purchases was very much on the higher side. I concur with the findings of CIT(A), hence, the impugned order warrants no interference. The appeal of Revenue is devoid of any merit, hence, dismissed.
Order pronounced in the open Court on Thursday, the 10th day of June, 2021.
Sd/-
(VIKAS AWASTHY) या यक सद य/JUDICIAL MEMBER मंब ु ई/ Mumbai, 2दनांक/Dated: 10/06/2021 Vm, Sr. PS (O/S) 3 ITA NO.5718/MUM/2019 (A.Y 2009-10) त ल प अ े षतCopy of the Order forwarded to :
1. अपीलाथ)/The Appellant ,
2. * तवाद / The Respondent.
3. आयकर आय3 ु त(अ)/ The CIT(A)-
4. आयकर आयु3त CIT
5. वभागीय * त न ध, आय.अपी.अ ध., मब ु ंई/DR, ITAT, Mumbai
6. गाड7 फाइल/Guard file.
BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, Mumbai