2018 (10) TMI 496

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.... for the sake of convenience and brevity. First we take up ITA.No.1533/Mum/2017 for AY 2009-10 which contest the order of Ld. Commissioner of Income-Tax (Appeals)-28 [CIT(A)], Mumbai, Appeal No.CIT(A)-28/IT-661/ITO-17(1)(5)/2014-15 dated 09/12/2016 by raising following grounds of appeal: 1) Reopening of assessment bad in law: a) The learned Commissioner of Income-tax (Appeals) ["CIT(A)"] erred in confirming the action of the Deputy Commissioner of Income Tax 13(1), Mumbai ("AO") in reopening the assessment u/s 148 of the Income-Tax Act, 1961. b) As there was no reason to believe that the income chargeable to tax has escaped assessment, the reopening is without jurisdiction c) On the basis of the facts and in the c....

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....cs after additions of alleged bogus purchases for Rs. 65.99 Lacs as against returned income of Rs. 51.49 Lacs e-filed by the assessee on 30/09/2009 which was assessed u/s 143(3) on 30/11/2011 at Rs. 65.77 Lacs. 2.2 The reassessment proceedings were initiated vide notice u/s 148 dated 13/03/2013 pursuant to receipt of certain information from the Sales Tax Department, Maharashtra wherein it was found that the assessee stood benefitted of alleged bogus purchases aggregating to Rs. 65.99 Lacs from ten parties, the details of which have already been extracted at para-4.1 of the quantum assessment order. The partner of the assessee firm, vide summons dated 07/03/2013 u/s 131, was asked to produce the purchase register, purchase bills, transpo....

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....a, Ld. Departmental Representative [DR], Shri Manoj Kumar Singh, supported the stand of lower authorities. 5. We have carefully heard the rival contentions and perused the relevant material on record including documents placed in the paper book and judicial pronouncements as cited before us. We are of the considered opinion that there could be no sale without actual purchase of material since the assessee was engaged in contract work. The sales turnover achieved by the assessee has not been disputed by the revenue and the payments were through banking channels. The assessee was in possession of primary purchases documents. At the same time, the assessee could not conclusively substantiate the purchases made by him and failed to produce a....

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....e fact that the assessee was dealing only with the Government authorities and therefore, the expenditure was not allowable to the assessee. The same, upon confirmation by Ld. CIT(A), is under appeal before us. 7.2 The second addition stem from the fact that to confirm the closing balances reflected by the assessee against four Sundry Creditors, notices u/s 133(6) were sent. However, in response to the same, all the parties denied having any business activity with the assessee. The relevant details of these parties and result of notice u/s 133(6) and the assessee's submissions against the same has already been extracted at para-4 of the quantum assessment order. The Ld. AO, applying the provisions of Section 28(iv), added the same to the ....