ITO 6 (3)(1), MUMBAI vs. M/S IFHS STEELS PVT LTD., MUMBAI

ORDER PER VIKAS AWASTHY, J.M: This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals)-12, Mumbai [hereinafter referred to as ‘the CIT(A)’] ' dated 22.10.2019 for the Assessment Year (AY) 2011-12. 2. The brief facts of the case as emanating from records are: The assessee is trading in fasteners. On the basis of information received from the Sales Tax आअसं. 476/मुं/2020 (िन.व.2011-12) (A.Y. 2011-12) Department, Government of Maharashtra, assessment for AY 2011-12 in the case of assessee was re-opened. As per the information received, the assessee obtained bogus purchase bills aggregating to Rs. 14,92,892/- from various (twelve) dealers, declared as hawala operators by the Sales Tax Department. During assessment proceedings, the Assessing Officer (AO) issued notice under section 133(6) of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’] to the dealers from whom the assessee had allegedly made purchases. The said notices were received back unserved from the postal authorities with remarks “Left or Not Known”. No confirmations from the vendors were filed by the assessee, no documentary evidence to substantiate trail of goods was furnished by the assessee. The AO made addition of the entire bogus purchases. Aggrieved by the assessment order dated 27.01.2016 passed under section 143(3) read with section 147 of the Act, the assessee filed appeal before the CIT(A). The CIT(A) after examining facts of the case and documents on record restricted the disallowance on bogus purchases to 12.5%. Now, the Revenue is in appeal against the relief granted by the CIT(A).