NITIN AVANTILAL DOSHI, MUMBAI vs. ITO 17(1)(4), MUMBAI

The captioned appeal by assessee for Assessment Year [AY] 2009-10 assails the order of the Ld. Commissioner of Income-Tax (Appeals)-29 [CIT(A)], Mumbai dated 13/02/2013 qua confirmation of certain additions on account of bogus purchases. 2.1 Facts leading to the same are that the assessee being resident individual dealing in metal under proprietorship concern namely Kushal Metal & Steel Ind. was assessed for impugned AY u/s 143(3) on 26/12/2011 at Rs.2,26,77,880/- after certain addition of bogus purchases for Rs.2,11,39,662/- as against returned income of Rs.15,38,540/- filed by the assessee on 30/09/2009. The assessee reflected GP / NP rate of 11.73% & 1.12% respectively against turnover of Rs.13.90 crores. 2.2 The assessee made purchases of Rs.2,11,39,662/- from four parties. However, notices sent u/s 133(6) to confirm the purchases transactions were returned back un-served by the postal authorities. The Ld. AO issued summons u/s 131 but the assessee failed to produce any party for confirmation of the transactions, which led the Ld. AO to treat the same as bogus purchases and consequently, the same was added to the income of the assessee. 3. Aggrieved, the assessee contested the same without any success before Ld. CIT(A) vie impugned order dated 13/02/2013 and contended that the payments were through banking channels and the assessee was in possession of primary purchases documents and complete Nitin Avantilal Doshi Assessment Year 2009-10 quantitative details were available on record. However, Ld. CIT(A) after appreciating the remand report and assessee’s submissions confirmed the additions. Aggrieved, the assessee is in further appeal before us. 4. The Ld. Counsel for assessee [AR], at the outset, drew our attention to the fact that the assessee suffered similar addition in AY 2010-11 and matter was contested before this Tribunal vide ITA No. 4739/Mum/2014 order dated 23/08/2017 where the addition has been restricted to 12.5%. Ld. DR fairly conceded the same. A copy of the order has been placed before us. 5. After perusing the cited order of the Tribunal, we concur with the stand of Ld. AR since the addition against similar purchases have been estimated @12.5% in AY 2010-11. Therefore, there being no change in facts or circumstances except for minor variations etc., following the same, we restrict the impugned additions to 12.5% of alleged bogus purchases of Rs.2,11,39,662/- 6. Resultantly, the assessee’s appeal stands partly allowed. Order pronounced in the open court on 04th October, 2017.