M/S. SHREEJI,MUMBAI vs. THE ITO WD 22(3) (3) , MUMBAI

This appeal is filed by the assessee against the order passed by National Faceless Centre, [the learned CIT(A)] for Assessment Year 2011-12 dated 30th November, 2021. The solitary issue raised by the assessee is an addition of ₹1,07,782/- under section 69C of the Income Act, 1961 (the Act) as well as reopening of the assessment.

The fact shows that the assessee is trading in garments as a partnership firm. It filed its return of income on 8th September, 2011, for ₹1,87,480/-. Subsequently, the information was received from Sales Tax Department,

Assessee preferred the appeal before the learned CIT(A) i.e. National Faceless Appeal Centre (NFAC). The order of the learned Assessing Officer was confirmed by the learned CIT(A) and therefore, assessee is in appeal before us.

At the time of hearing, one Shri Pinak Nandu appeared before us stating that he is partner of the assessee firm and requested for adjournment. The learned Departmental Representative submitted that the issue involved is small and therefore, may be decided on the merits of the case.

We have carefully considered the rival contention and perused the orders of the lower authorities. We find that the assessee has purchased goods worth ₹80,33,124/- in its business of trading in garments. Assessee is carrying retail business of dresses. The Sales Tax Authorities intimated to the DGIT (Investigation), Mumbai that assessee has shown purchase of ₹1,07,782/- from M/s Vinod Enterprises which is found to be an accommodation entry provider as per Sales Tax Department of Govt. of Maharashtra. The case of the assessee was reopened and learned Assessing Officer made an addition of ₹1,07,782/- being 100% of the bogus purchases as income of the assessee. During the course of assessment proceedings, assessee submitted that it purchased goods from the above party through proper tax invoice, payments have

In the result, the appeal of the assessee is partly allowed.