SHRI MOHAMMED MOBIN M. H. CHOUDHARY,MUMBAI vs. ITO 26 (3)(2), MUMBAI

Brief facts of the case are that assessee is engaged in the business of reseller of M.S. Scraps and iron and steel. The assessment was reopened pursuant to information from the sales tax Department that the assessee has purchased from certain bogus parties. The assessing officer in the assessment order noted that assessee did not supply any information for notice given in this regard. Hence assessing officer added hundred percent of the bogus purchases.

Upon assessee's appeals learned CIT(A) noted the assessee's contention that all the documents were submitted to the assessing officer. Thereafter on 2 Shri Mohammed Mobin M.H. Choudhary further enquiry learned CIT(appeals) noted that assessee has contended that the books of accounts and documents were seized by the sales tax Department and assessee could not produce the same. However the learned CIT(appeals) rejected this contention . Thereafter on the basis of sales tax Department information and the non-furnishing of documents and details by the assessee learned CIT(appeals) confirmed the hundred percent addition made by the assessing officer for the bogus purchases.

Against in this order assessee is in appeal before ITAT. I have heard the learned departmental representative and perused the records. I find that the contention of the assessee before the learned CIT appeals is that the books and documents were seized by the sales tax the Department and as such the assessee could not produce the same. Furthermore I note that the sales have neither been examined nor any adverse inference taken by the authorities below. In such circumstances in my considered opinion interest of justice will be served if the issue is remitted to the file of assessing officer for consideration afresh. Needless to add the assessee should be granted adequate opportunity of being heard.

In the result these appeals by the assessee stand allowed for statistical purposes.