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Income Tax Appellate Tribunal, “K” BENCH, MUMBAI
Before: SHRI SHAMIM YAHYA, AM & SHRI AMARJIT SINGH, JM
O R D E R
PER AMARJIT SINGH, JM:
The assessee has filed the present appeal against the order dated 29.12.2015 passed by the Commissioner of Income Tax (Appeals) -49, Mumbai [hereinafter referred to as the “CIT(A)”] relevant to the A.Y. 2009-10.
The assessee has raised the following grounds: - “
1. On the facts and in the circumstances of the case and in Law the Ld CIT(A) erred in upholding the action of the Ld AO of reopening of the completed assessment and the reason assigned for doing so are wrong and contrary to the provision of Income Tax Act and rules made there under. A.Y. 2009-10
2. On the facts and in the circumstances of the case and in law the Hon'ble CT(A) erred in confirming the addition of Rs. 1,55,22,253/- made by the Ld AO by treating the genuine purchases as in genuine and the reason assigned for doing so are wrong and contrary to the provision of Income Tax Act and rules made there under.
3. Your Appellant crave, leave to add, alter, amend or modify any or all grounds of appeal on or before the date of hearing.”
3. The brief facts of the case are that the assessee filed its return of income on 25.09.2009 declaring total income to the tune of Rs.5,64,80,578/- for the A.Y.2009-10. The assessment was completed u/s 143(3) of the I. T. Act, 1961 on 30.12.2011 determining total income to the tune of Rs.5,66,78,190/- after disallowance on account of transport charges of Rs.1,97,609/-. The assessee firm is engaged in the business of civil contractor for local body like MCGM. This civil construction work involves construction of roads, drainage, building etc, including repairs of the same. The assessee is also engaged in the manufacturing of RMC (Ready Mix Concrete). The case of the assessee was reopened on the basis of information received from the Sales Tax Department, Maharashtra in which it was conveyed that the assessee has taken the accommodation entries of bogus purchase in sum of Rs.6,49,24,920/- from the following thirty nine parties.
Sr. Name of the concerns/parties No. 1 Aayushi Enterprises 2 Adijin Enterprises 3 Aman impex 4 Anshu Mercantile Pvt. Ltd. 5 Aryen Sales Corporation 6 Balaji Traders A.Y. 2009-10 7 Bhavani Trade Link 8 CNS Trade Links Pvt. Ltd. 9 Darshan Sales Corporation 10 Deep Enterprises 11 Dharmesh Trading Company 12 Dhaval Enterprises 13 Dhiren Mercantile Pvt, Ltd. 14 G. M. International 15 Hiten Enterprises 16 Jain Corporation 17 KK Trading Company 18 Krshna Enterprises 19 Mahavir Enterprises 20 Mahavir Sales Corporation 21 Navdeep Trading Corporation 22 Niddhish Impex Pvt. Ltd. 23 PK Trading Co 24 Prayan Trading Co 25 Raj Traders 26 Rohit Enterprises 27 SJ International 28 Sam Enterprises 29 Sampark Steels 30 Shantinath Corporation 31 Shreeji Traders 32 Shubhlaxmi Sales Corporation 33 Siddhivinayak Corporation ITA No. 2704/M/2016 A.Y. 2009-10 34 Surachi Multitrade Pvt. Ltd. 35 Tisha Enterprises 36 Tulsiani Trading Pvt. Ltd. 37 Universal Trading Co. 38 Yash Impex 39 Yashita Emim Pvt. Ltd.
After the reply of the assessee, the AO raised the addition to the extent of 100% of the bogus purchase in sum of Rs.6,49,24,920/-. The total income of the assessee was assessed to the tune of Rs.12,16,03,110/-. Feeling aggrieved, the assessee filed an appeal before the CIT(A) who restricted the addition to the extent of 12.5% in sum of Rs.1,55,22,253/-, therefore, the assessee has filed the present appeal before us.