SAHABULLAH MOHD. SHARIF KHAN,MUMBAI vs. ITO 20(3)(2), MUMBAI

Aforesaid appeal by assessee for AY 2009-10 arises out of the order of Ld. Commissioner of Income Tax (Appeals)-32 Mumbai [CIT(A)] dated 28/08/2019 in the matter of assessment framed by Ld. Assessing Officer (AO) u/s 143(3) r.w.s. 147 on 27/03/2015. The sole subject matter of appeal is estimation of addition on account of alleged bogus purchases. The assessee being resident individual is stated to be engaged as iron and steel dealer under proprietorship concern namely M/s Sagar Tubes Steel.

At the time of hearing, none appeared for assessee. However, the material on record was sufficient for disposal of the appeal. The Ld. Sr. DR pleaded for dismissal of the appeal.

Upon perusal of assessment order, it could be seen that the case was reopened pursuant to receipt of certain information from Sales Tax Department, Maharashtra on the basis of which it was alleged that the assessee made suspicious purchases of Rs.117.51 Lacs from 4 entities as detailed in para 3 of the order. Though the assessee furnished purchase bills, however, noticing that the suppliers were not found at the given addresses, Ld. AO estimated addition of 12.5%.

The Ld. CIT(A), while confirming the stand of Ld. AO, noted that the assessee had reflected Gross Profit Rate of 14.62% and considering assessee’s nature of business, the addition of 5% would be fair and reasonable. Still aggrieved, the assessee is in further appeal before us.

Upon perusal of impugned order, we find that Ld. CIT(A) has passed a well reasoned and speaking order after considering factual matrix of the case. The estimation of 5% in steel business was quite fair and reasonable which would not require any interference on our part.

The appeal stand dismissed. Order pronounced on 02nd September, 2021. (C. N. Prasad) (Manoj Kumar Aggarwal) न्याययक सदस्य / Judicial Member लेखा सदस्य / Accountant Member मुंबई Mumbai; यदनांक Dated : 02/09/2021 Sr.PS, Dhananjay