DOMBIVLI PAPAER MFG. CO.P.LTD,THANE vs. ASST CIT CIR 1, KALYAN

Per Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year [in short referred to as ‘AY’] 2011-12 contest the order of Ld. Commissioner of Income-Tax (Appeals)-2, Pune [in short referred to as ‘CIT(A)’], Appeal No.(new)PN/CIT(A)-2/ACIT-Cir-1/KYN/211/2017-18; Appeal No.(old): THN/CIT(A)-2/ACIT-Cir-1/KYN/40/2015-16 dated 14/11/2017 qua Dombivili Paper Mfg. Co.Pvt.Ltd. AY :2011-12 confirmation of certain addition of Rs.7.17 Lacs on account of alleged bogus purchases. 2.1 Brief facts are that the assessee being resident corporate entity stated to be engaged in manufacturing of papers was subjected to reassessment proceedings for impugned AY u/s 143(3) read with Section 147 on 26/02/2015 by Ld. Assistant Commissioner of Income Tax-Circle-1, Kalyan [AO]. The reassessment proceedings got triggered pursuant to receipt of certain information from Sales Tax Department, Maharashtra & investigation wing that the assessee stood beneficiary of accommodation purchase bills to the tune of Rs.7.17 Lacs from 5 parties, the details of which have been extracted in para 2 of the quantum assessment order. Accordingly, notice u/s 148 dated 20/06/2013 was issued to the assessee which was followed by statutory notices u/s 143(2) & 142(1). The original return of income filed by the assessee on 24/09/2011 was processed u/s 143(1). 2.2 The assessee could not substantiate delivery of material with cogent evidences and also failed to produce any of the suppliers to confirm the transactions. Notices sent u/s 133(6) to all the suppliers to confirm the transactions did not elicit satisfactory response. Accordingly, the purchases were disallowed and added to the income of the assessee. The stand of Ld. AO, upon confirmation by first appellate authority is under appeal before us.