IRFAN MUKARAB KHILJI,MUMBAI vs. INCOME TAX OFFICER, WARD 26(1)(5), MUMBAI

The captioned appeal by assessee for Assessment Year [AY] 2009-10 contest the order of Ld. Commissioner of Income-Tax (Appeals)-38 [CIT(A)], Mumbai, Appeal No.CIT(A)- 38/ITO.26(1)(5)/IT.60/2015-16 dated 30/11/2016 qua confirmation of certain additions on account of alleged bogus purchases. The ITA.No.1816/Mum/2018 Irfan Mukarab Khilji Assessment Year- 2009-10 assessment for impugned AY was framed by Ld. Income Tax Officer- 26(1)(5), Mumbai [AO] u/s 143(3) read with section 147 of the Income Tax Act,1961 on 27/03/2015 wherein the income of the assessee has been determined at Rs.14,20,235/- after certain additions as against returned income of Rs.4.75 Lacs filed by the assessee on 24/09/2009 which was processed u/s 143(1). The sole issue under appeal is quantum addition against certain alleged bogus purchases. During impugned AY, the assessee was engaged as manufacture and trader under proprietorship concern namely M.K.Forge. The assessee declared gross profit @13.10% and net profit @3.22% in the impugned AY. 2.1 The reassessment proceedings were initiated upon receipt of certain information from Sales Tax Department, Maharasthra regarding dealers indulging in issuing bogus purchase bills wherein it was found that the assessee stood beneficiary for bogus purchase bills to the tune of Rs.37,78,365/- from eighteen such parties, the details of which have been extracted at para-2 of the quantum assessment order. Consequently statutory notice u/s 148 dated 22/03/2014 was issued to the assessee which was followed by notices u/s 143(2) & 142(1). 2.2 The assessee defended the purchases made by him and submitted documentary evidences to substantiate the purchases. However, notices issued u/s 133(6) to all these parties elicited no satisfactory response and the assessee was asked to produce the stated parties for confirmation of the transactions, which assessee failed to do so. Finally not convinced, Ld. AO estimated the quantum addition against these purchases @25% which resulted into an addition of Rs.9,44,591/- in the hands of the assessee. Aggrieved, the assessee contested the same