SHRI CHANDRAKANT KHIMJI MOTA,MUMBAI vs. ITO 19(1)(3), MUMBAI

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals) – 5, Mumbai [in short ‘the CIT(A)’] dated 08/03/2019 for the assessment year 2011-12.

A perusal of the assessment order shows that the assessee has failed to appear before the Assessing Officer despite notices and no return in response to notice under section 148 of the Income Tax Act, 1961 (in short ‘the Act’) was filed by the assessee. Consequently, the Assessing Officer was constrained to pass assessment order dated 27/12/2016 under section 144 r.w.s. 147 of the Act. The assessee is a wholesale trader of electronic items. The assessee allegedly obtained bogus purchase bills aggregating to Rs.57,84,080/- from hawala dealers declared by Sales Tax Department, Government of Maharashtra. The Assessing Officer made addition of 12.5% of total alleged bogus purchase i.e. 7,23,010. Aggrieved by addition made in the assessment order, the assessee filed appeal before CIT(A). The CIT(A) dismissed the appeal of assessee and confirmed the additions made by Assessing Officer in toto. The assessee is now in appeal before the Tribunal assailing the finding of CIT(A).

Ms. Kavita P. Kaushik, representing the department vehemently supported the impugned order and prayed for dismissing the appeal of assessee.

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