RAMESH KUMAR JAWANMALJI SAKARIA,MUMBAI vs. INCOME TAX OFFICER 19(3)(1), MUMBAI

Per Manoj Kumar Aggarwal (Accountant Member) 1. The captioned appeal by assessee for Assessment Year [AY] 2010-11 contest the order of Ld. Commissioner of Income-Tax (Appeals)-53 [CIT(A)], Mumbai, Appeal No.CIT(A)-53/IT-212/ITO- 19(3)(1)/2017-18 dated 01/01/2018 qua confirmation of certain additions on account of alleged bogus purchases. The assessment for impugned AY was framed by Ld. Income Tax Officer 19(3)(1), Mumbai [AO] u/s ITA.No.1817/Mum/2018 Ramesh Kumar Jawanmalji Sakaria Assessment Year- 2010-11 143(3) read with section 147 of the Income Tax Act,1961 on 10/02/2016 wherein the income of the assessee has been determined at Rs.15.56 Lacs after certain additions as against returned income of Rs.4.66 Lacs filed by the assessee on 23/09/2010 which was processed u/s 143(1). None has appeared for assessee and no valid adjournment application is on record. Left with no option, we proceed to dispose-off the same on the basis of material available on record and after hearing Ld. Departmental Representative [DR]. The issue involved under appeal is estimated addition against certain alleged bogus purchases. 2.1 The reassessment proceedings were initiated upon receipt of certain information from Sales Tax Department, Maharashtra regarding dealers indulging in bogus purchase bills and it was noted that the assessee stood beneficiary of such bogus purchase bills to the tune of Rs.87,23,065/- from twelve such entities, the details of which has been extracted in para-4.1 of the quantum assessment order. Consequently, statutory notice u/s 148 dated 23/02/2015 was issued to the assessee which was followed by notices u/s 143(2) and 142(1). During impugned AY, the assessee was engaged in trading of metals etc. 2.2 The assessee defended the purchases made by him and submitted documentary evidences including bank statement etc. to substantiate the purchases. However, notices issued u/s 133(6) to all the entities elicited no satisfactory response. Finally, not convinced with assessee’s submissions, Ld. AO estimated the additions against these purchases @12.5% which resulted into an addition of Rs.10,90,384/- in the hands of the assessee.