Addition on account of Bogus Purchases made by AO

THE INCOME TAX APPELLATE TRIBUNAL
“SMC” Bench, Mumbai
 Shri Shamim Yahya (AM) & Shri Amarjit Singh (JM)

 I.T.A. No. 7253/Mum/2019 (Assessment Year 2008-09)

M/s. Dilip Kantilal Kapadia
Aban House, 1st Floor
25/31, Ropewalk Street
Off.K.Dubash Marg
Fort, Mumbai-400 023
PAN : AABPK0349K
(Appellant) 

Vs. 

ITO-17(1)(4)
Aaykar Bhawan
M.K.Road
Mumbai-400 020
(Respondent)

Assessee by Ms.Rutuja N.Pawar
Department by Shri Anoop

Date of Hearing 19.05.2021
Date of Pronouncement 01.07.2021

 O R D E R

Per Shamim Yahya (AM) :-

This appeal by the Assessee is directed against the order of learned CIT(A)-28 dated 28.10.2019 and pertains to Assessment Year 2008-09.

2. The grounds of appeal read as under :

1. That on the facts and in the circumstances of the case of the appellant and in law Id. CIT(A) has erred in not considering the appeal of the appellant's on merits.

2. That on the facts and in the circumstances of the case of the appellant and in law Id. C1T(A) has erred in not condoning the delay in filing the appeal on a bone fide ground.

3. That on the facts and in the circumstances of the case of the appellant and in law Id. C1T(A) has erred in not considering the re-opening u/s. 147 of the Act which is bad in law.

4. That on the facts and in the circumstances of the case of the appellant and in law Id. C1T(A) has erred in holding the addition of purchase aggregating to the tune of Rs.2,39,148/- as bogus purchase.

5. That the impugned order being contrary to law, evidence and facts of the case maykindly be set aside, amended and modified in the light of the grounds of appealenumerated above and the appellant be granted such relief as is called for on the facts and in the circumstances of the case of the appellant and in law.

6. That each of the grounds of appeal enumerated above is without prejudice to and independent of one another. 

3. Brief facts of the case are that the assessee is engaged in the business of exporter of pharmaceuticals products, cotton surgical dressings. The AO has made 100% addition on account of bogus purchases by holding as under:-

2. ' This case was reopened on the basis of information received from Addl, DIT(Inv), Unit-I, Mumbai regarding information on beneficiaries in the cases of Rajendra Jain and Kamal Kishore Rathi. On examination it is found that DILIP K KAPADIA has taken accommodation entries from NAZAR during the F.Y, 2007-08.

3. In this case, as per the information received as discussed above, the case was accordingly reopened after recording reasons and taking necessary approval. Notice u/s. 148 dated 27.03.2015 was issued and duly served on the assessee. Further notices u/s.143(2) dated 14.09,2015 & 142(1) alongwith questionnaire dated 14.09.2015 were issued requesting the assessee to furnish the details in respect of A.Y. 2008-09 and reasons were duly communicated to the assessee.

4. In response to said notices, Shri Dilip K. Kapadia, Assessee himself vide its letter dated 16,10.2015, 20.10.2015 & 07.01.2016 attended from time to time and filed various details such as details of purchases with names and addresses of suppliers, ledger & copy of the bill of M/s. Nazar Impex Pvt. Ltd.. The assessee has also submitted Brief note of Business activity, Balance sheet etc and the case was discussed with him.

5. The assessee is an individual and partner in firm M/s. Keshavlal Vajechand which is engaged in the exports of pharmaceuticals products, cotton surgical dressings etc.

6, To prove genuineness of the accommodation entries a notice u/s. 133(6) dated 03.12.2015 was also issued to M/s. Nazar Impex Private Limited. In response to the notice issued M/s. Nazar Impex Private Limited submitted various detailsrelated to Shri Dilip K. Kapadia such as copy of ledger account, copy of sale register, copy of bank statement, copy of acknowledgement of Return filed and Copy of Pan card of Shri Dilip K. Kapadia. 

To know more in details find the attachment file