×Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India
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This appeal, filed by assessee, being ITA No. 2129/Mum/2018, is directed against appellate order dated 05.12.2017, passed by learned Commissioner of Income Tax (Appeals)-32, Mumbai (hereinafter called “the CIT(A)”) in appeal number CIT(A)-32/IT-502/ITO-20(1)(4)/15-16, for assessment year 2010-11, the appellate proceedings had arisen before learned CIT(A) from assessment order dated 01.02.2016 passed by learned Assessing Officer (hereinafter called “the AO”) u/s 143(3) r.w.s. 147 of the Income-tax Act, 1961 (hereinafter called “the Act”) for AY 2010-11.
2. The grounds of appeal raised by assessee in memo of appeal filed with the Income-Tax Appellate Tribunal, Mumbai (hereinafter called “the tribunal”) read as under:-
“1) Both the lower authorities erred in holding that an amount of Rs. 87,85,369/-be required to be disallowed as bogus purchases.
2) The appellant submits the disallowance is unjustified because no valid satisfaction is recorded by either of the lower authorities, and without considering the facts and circumstances of the case.
3) The appellant submits that no disallowance can be made in the absence of a valid reason for disagreeing with the appellant's contention.
4) The appellant submit that if at all any expenditure has been claimed the same is said to have already been disallowed under the computation of tax.
5) Having regard to the facts and circumstances of the case, and the provisions of law, the appellant submits that the disallowance is unjustified and the same requires to be deleted.”
3. The assessee is engaged in the business of manufacturing of Engineering Goods The information was received by AO from DGIT(Inv.) , Mumbai, that the Sales Tax Department has carried out investigations and published a list of parties who provides accommodation bills and list of beneficiaries of these alleged bogus purchases. The assessee was listed as one of beneficiaries of accommodation entries by way of bogus purchases without actual delivery of goods from the following alleged hawala dealers during the previous year relevant to impugned assessment year , the details of which are as under:-
3.2 The assessee’s concluded assessments were reopened by the AO u/s 147 of the 1961 Act and notice u/s 148 of the 1961 Act was issued by AO against assessee on 19.02.2015 which was claimed by AO to be duly served on assessee. We are presently concerned with AY 2010-11 and thus notices u/s 148 was issued by AO within four years from the end of assessment year for reopening of the concluded assessment and originally no assessment was framed by the AO u/s 143(3) of the 1961 Act. The AO also issued notices to the assessee u/s 143(2) and u/s. 142(1) and opportunities were given by the AO to the assessee to present its case, but there was no appearances on behalf of the assessee before the AO, which led AO to disallow entire alleged bogus purchases wherein AO made additions to the tune of 100% of alleged bogus purchases aggregating to Rs. 87,85,369/- , vide reassessment order dated 01.02 2016 passed by the AO u/s. 143(3) r.w.s. 147 of the 1961 Act.
6. The assessee being aggrieved by re-assessment order dated 01.02.2016 passed by the AO u/s 147 read with Section 143(3) of the 1961 Act, filed an first appeal with Ld. CIT(A) and again there was no appearance of the assessee before Ld. CIT(A) which led Ld. CIT(A) to adjudicate appeal of the assessee ex-parte holding against assessee wherein 100% of alleged bogus purchases to the tune of Rs. 87,85,369/- stood confirmed by learned CIT(A) by confirming additions to the income of the assessee as were earlier made by AO in its reassessment order, vide appellate order dated 05.12.2017 passed by Ld. CIT(A) , by holding as under:-
“ 2.4 I have given my careful consideration to the submissions, perused the material on record and duly considered the factual matrix of the case as also the applicable legal position.
At the outset, it has to be mentioned that the appellant has not shown any interest to pursue its appeal . The case has