M/S.STRIPCO SPRINGS PRIVATE LIMITED,MUMBAI vs. INCOME TAX OFFICER 13(3)(3), MUMBAI

Per Manoj Kumar Aggarwal (Accountant Member) 1. The captioned appeal by assessee for Assessment Year [AY] 2011-12 contest the order of Ld. Commissioner of Income-Tax (Appeals)-21 [CIT(A)], Mumbai, Appeal No. CIT(A)-21/ITO-13(2)(4)/IT- 149/2016-17 dated 20/11/2017 qua confirmation of certain additions on account of alleged bogus purchases. The assessment for impugned AY was framed by Ld. Income Tax Officer-13(2)(4), Mumbai [AO] u/s 143(3)

ITA.No.1000/Mum/2018 Stripco Springs Private Limited Assessment Year- 2011-12 read with section 147 of the Income Tax Act,1961 on 21/03/2016 wherein the income of the assessee has been determined at Rs.9.40 Lacs after certain additions as against ‘Nil’ revised return filed by the assessee on 14/01/2012 which was processed u/s 143(1). The issue under appeal is quantum addition against certain alleged bogus purchases. None has appeared for assessee despite notice and therefore, 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]. 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.28,41,238/- from two such parties. Consequently, statutory notice u/s 148 dated 11/03/2015 was issued to the assessee which was followed by notices u/s 143(2) and 142(1). 2.2 During assessment proceedings, the assessee, inter-alia, submitted ledger extracts bank statement evidencing payment to the suppliers, copies of invoices etc. to prove the genuineness of purchases. However, notices issued u/s 133(6) to both the suppliers to confirm the transactions elicited no response. The assessee also failed to produce any of the party to confirm the transactions. The factual matrix led the Ld. AO to treat the purchases as bogus purchases against which estimated additions @30% amounting to Rs.8.52 Lacs were made in the hands of the assessee.