PADMARAM R. CHOUDHARY,MUMBAI vs. ITO 19(2)(5), MUMBAI

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ITA 1733/MUM/2017Status: DisposedITAT Mumbai18 September 2017AY 2009-102 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal found that the CIT(A) had passed a reasoned order and upheld it. Therefore, the appeal filed by the assessee was dismissed.

What were the facts?

The assessee, engaged in metal trading, had purchases from dealers suspected of issuing accommodation bills. The Assessing Officer reopened the assessment and made additions at 12.5% of non-genuine purchases. The CIT(A) confirmed this addition.

What were the issues?

Whether the addition made by the Assessing Officer on account of non-genuine purchases, as confirmed by the CIT(A), is sustainable.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” Bench, Mumbai

Before: Shri B.R. Baskaran (AM)

For Respondent: Shri Ram Tiwari
Hearing: 18.9.2017Pronounced: 18.9.2017

The appeal filed by the assessee is directed against the order dated 9.1.2017 passed by the learned CIT(A)-30, Mumbai and it relates to A.Y. 2009- 10.

2.

None appeared on behalf of the assessee even though notice of hearing was sent to the assessee by registered post on more than one occasion. Hence, I proceed to dispose of the appeal ex-parte, without presence of the assessee.

3.

I heard learned Departmental Representative and perused the record. Assessee is engaged in the business of trading in ferrous and non-ferrous metals. Consequent to the information received from the Sales Tax Department that certain traders are indulging in providing only accommodation bills without actually supplying the materials and upon noticing that the assessee has purchased goods to the tune of ` 151.04 lakhs from such dealers during the year under consideration, the Assessing Officer reopened the assessment by issuing notice u/s. 148 of the Act. The Assessing Officer completed the 2 Shri Padmaram R. Choudhary assessment by sustaining the addition to the extent of 12.5% of the value of non-genuine purchases. The learned CIT(A) also confirmed the same and hence the assessee has filed this appeal before the Tribunal.

4.

I have gone through the order passed by the learned CIT(A) and also heard the contentions of learned Departmental Representative. I noticed that the learned CIT(A) has passed a reasoned order and hence the same does not call for any interference. Accordingly I uphold his order.

5.

In the result, the appeal filed by the assessee is dismissed. Order has been pronounced in the Court on 18.9.2017.

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