ASHOK BHANDARI,MUMBAI vs. ITO 19(1)(2), MUMBAI

आदेश / O R D E R PER R.C.SHARMA (A.M): This is an appeal filed by the assessee against the order of CIT(A)- 29, Mumbai dated 09/02/2017 for A.Y.2010-11 in the matter of order passed u/s.143(3) r.w.s. 147 of the IT Act. 2. In this appeal, assessee is aggrieved for upholding the part of addition made on account of bogus purchases. 3. Nobody appeared on behalf of assessee inspite of giving opportunity, therefore, Bench decided to dispose the appeal after hearing the learned DR and considering the material placed on record. 3. I have gone through the orders of the authorities below and found that bogus purchases were found during the year amounting to Rs.2,04,93,150/-. The AO stated in the assessment order that barring the Shri Ashok Bhandari ledger account and cheque payment details, no other documents like delivery challans, lorry receipts, transportation details etc were produced during the course of assessment proceedings. Further these alleged hawala parties have admitted in front of the sates tax department that they have not made any sale or purchase transactions. This clearly shows that the purchases shown to have been made by the assessee from these firms are non genuine. Further, the AO tried to independently verify the genuineness of the purchases by issuing notices u/s. 133(6) to these parties which were returned unserved by the postal authorities. The assessee was also asked to produce the suppliers for verification but the assessee failed to produce them. Further, the assessee has shown corresponding sales on these purchases. Therefore, it was presumed by the AO that the assessee has purchased goods from the grey market probably without bills and had taken accommodation bills from the alleged parties. The AO relying on the decision of CIT vs. Simit P. Sheth 356 ITR 451 estimated the additional GP @12.5% of the alleged bogus purchases. In view of this overwhelming adverse information, the AO has estimated the additional GP @12.5% of the alleged hawala purchases.