Case Law Details
DCIT (LTU-I) Vs CMI FPE Ltd. (ITAT Mumbai)
Assessee has purchased M.S. plates from various dealers out of which M/s V3 Enterprises was alleged to be an accommodation entry provider. It is evident from the record that the assessee has furnished the details of the suppliers along with their addresses and the price quoted for the materials purchased. The only contention of the department is that the alleged dealer’s name appeared in the website of sales-tax department, Government of Maharashtra to be non genuine dealer. Apart from this, the Assessing Officer has not shown any corroborative evidences to prove that the said transaction is only a bogus transaction for the purpose of providing accommodation entry. The assessee, on the other hand, has proved the genuineness by furnishing the details of cheque, the bank account number, the invoices, delivery challans and other details evidencing the purchase of M.S. plates to the tune of Rs.35,78,377/-. The assessee has relied on the decision of DCIT vs Adinath Industries 252 ITR 476 (Guj), which held that the assessee cannot be penalised for the action of supplier and that the assessee cannot be expected to know the commercial rationale on how this supplier operates its bank account which was considered by the Ld.CIT(A). The Ld.CIT(A) has relied on the decision of the jurisdictional High Court in the case of CIT vs Nikunj Eximp Enterprises (P) Ltd (supra) on the ground that the assessee cannot be faulted if the seller is not traceable and also that it is not the burden of the assessee to investigate the genuineness of the seller or their business transaction. Respectfully following the above judicial precedent, we hold that there is no infirmity in the order of Ld.CIT(A). The grounds of appeal filed by the Revenue are dismissed.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal has been filed by the Revenue as against the order of the Ld. Commissioner of Income-tax (Appeals)-3, Mumbai dated 15/11/2018 passed under section 250 of the Income-tax Act, 1961 pertaining to assessment year 2009-10.
2. This is a recalled matter. It is to be noted that the present appeal was earlier dismissed by the co-ordinate bench vide order dated 07/09/2020 on the ground of low tax effect. Thereafter, the matter was recalled in MA No.159/Mum/2021 vide order dated 29/04/2022 at the instance of Revenue that the same would be covered by the exception provided under paragraph 10(e) of the CBDT circular No.17 of 2019 dated 08/08/2019. Thus, the matter again came up for consideration on merits.
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