NINAD SHIVANAND KULLY,THANE vs. ITO WARD - 3(1) THANE, THANE

This is an appeal filed by the assessee against the order of CIT(A)- 2, Thane, dated 29/03/2017 for the A.Y.2009-10 in the matter of order passed u/s.143(3) r.w.s. 147 of the IT Act.

In this appeal, assessee is aggrieved for upholding addition on account of bogus purchases.

Nobody appeared on behalf of assessee inspite of service of notice nor any adjournment petition was filed, therefore, Bench decided to dispose the appeal after hearing the learned DR and considering the material placed on record Shri Ninad Shivanand Kully 4. Rival contentions have been heard and record perused. In this case, the AO has received information from the Sales Tax Department that the assessee has affected purchases from M/s Dev Enterprises, Rs.4,70.259/-, which was declared as suspicious, The party, in his statements / on the basis of spot verification / survey action, duly admitted the fact that it had not actually delivered any goods, but merely provided the bills and refunded hack cash to the buyer, after deducting the nominal commission. The AO treated the entire purchases of Rs.4,70,259/- from above referred party, as bogus and added back to the income of the assessee.

By the impugned order, CIT(A) upheld the entire addition made by the AO.

Assessee is in further appeal before us.

I have considered the contentions of learned DR and carefully gone through the orders of the authorities below. From the record, I found that assessee is engaged in the manufacturing of rectifier and control panel which are mainly exported. The said assessment was reopened u/s 147 and a notice dared 26th September.2013 along with copy of reasons recorded for issue of notice u/s 148 of the IT Act, stating that Sales Tax Department, Government of Maharashtra have informed that certain parties have issued bogus bills without any transaction and in the case of assessee the issue related to purchases from M/S Dev Enterprises of Rs. 470259/-.