GOLDMOHUR DESIGN & APPARELS PARK LTD,MUMBAI vs. DCIT CIR 6(3), MUMBAI

ORDER PER N.K. PRADHAN, A.M This is an appeal filed by the assessee. The relevant assessment year is 2011-12. The appeal is directed against the order of the Commissioner of Income Tax (Appeals)-21, Mumbai and arises out of the assessment completed u/s 143(3) of the Income Tax Act 1961, (the ‘Act’).

read as under: - 1.1 The Learned Commissioner of Income - tax (Appeals) - 21, Mumbai, ["Ld. CIT (A)"] erred in confirming the action of the Deputy Commissioner of Income - tax, Circle -

6. (3), Mumbai ["the A.O."] in making addition of Rs.38,37,418/-u/s. 69 of the Income - tax Act, 1961 ["the Act"] on account of alleged unexplained purchases. 1.2 While doing so, the Ld. CIT (A) erred in: (i) Basing his action only on surmises, suspicion and conjecture; (ii) Taking into account irrelevant and extraneous considerations; and (iii) Ignoring relevant material and considerations as submitted by the Appellant. 1.3 It is submitted that, in the facts and the circumstances of the case, and in law, no such addition was called for. 1.4 Without prejudice to the above, in the alternative, assuming - but not admitting - that some disallowance was called for, the computation of the same is not in accordance with the law, is arbitrary and excessive.

3. Briefly stated, the facts of the case are that the Assessing Officer (AO) issued notice u/s 133(6) to M/s Arkan Fashion. The said notice was received by the AO as unserved. The AO noted that the assessee failed to establish the corresponding sales by producing the stock register. As the assessee failed to establish the genuineness of transaction with M/s Arkan Fashion, the AO made an addition of Rs.38,37,418/- as unexplained investment u/s 69.