ITO 27 (1)(5), Mumbai vs M/S GLUCK (INDIA) MANUFACTURING COMPANY , Mumbai

Last updated: 28 November 2020

Court :
ITAT Mumbai

Brief :
This is an appeal by the revenue wherein the revenue is aggrieved that Learned Commissioner of Income Tax (Appeals) [in short learned CIT(A)] has reduced the addition for bogus purchase of Rs. 3,76,530/- done @ 100% by Assessing Officer by sustaining only 12.5%.

Citation :
I.T.A. No. 1838/Mum/2019

THE INCOME TAX APPELLATE TRIBUNAL
“SMC-I” Bench, Mumbai
Shri Shamim Yahya (AM)

I.T.A. No. 1838/Mum/2019 (Assessment Year 2009-10)

ITO-27(1)(5) Tower No. 6, Room No. 410, Vashi Railway Station Complex, Vashi Navi Mumbai-703. (Appellant)

Vs.

M/s. Gluck (India) Manufacturing Company 113/114 Shivshakti Industrial Estate, LBS Marg, Ghatkopar West Mumbai-400 086. PAN : AAAFG0730H
(Respondent)

Assessee by None
Department by Shri Kailash Gaikwad
Date of Hearing 13.10.2020
Date of Pronouncement 14.10.2020

O R D E R

This is an appeal by the revenue wherein the revenue is aggrieved that Learned Commissioner of Income Tax (Appeals) [in short learned CIT(A)] has reduced the addition for bogus purchase of Rs. 3,76,530/- done @ 100% by Assessing Officer by sustaining only 12.5%.

2. The assessee in this case is engaged into business of manufacturing of pressure gauges. The assessment was reopened upon information from sales tax department that assessee has made Rs. 3,76,530/- purchases from bogus dealers. The Assessing Officer made 100% addition of the bogus purchase.

3. Upon assessee's appeal learned CIT-A has noted that the sale has not been doubted. Accordingly placing reliance upon several case laws and up on the facts of the case he sustained 12.5 % disallowance out of the bogus purchases.

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