TaxTMI 
TaxTMI 
2019 (5) TMI 2057
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...., (the 'Act'). 2. The grounds of appeal filed by the assessee read as under: 1. The Assessing Officer (Ward 4(1), Thane) reopened the case of appellant for AY 2011-12 u/s 147 of the Income Tax Act, 1961 having reason to believe that appellant had made bogus purchases during the said year on the basis of information received from the Sales Tax Department. 2. The Assessing Officer has passed ex parte order due to non-attendance of the assessee and assessed the income of the appellant at Rs. 40,27,381/- with addition of Rs. 37,17,321/- on account of bogus purchase. 3. Due to ex parte order the case could not be properly represented before Assessing Officer to explain and justify such purchase. Further Assessing Of....
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....vernment of Maharashtra, the AO observed that the assessee has made bogus purchases from the following two parties during the year under consideration: S. No. Name MVAT No. Amount 1. Urvin General Trading Pvt. Ltd. 27110537510V Rs. 20,76,990/- 2. Rydham Mercantile Pvt. Ltd. 27900670693V Rs. 16,40,331/- Total Rs. 37,17,321/- As mentioned earlier, there was no compliance by the appellant in response to the notices issued during the assessment proceedings. Therefore, keeping in mind the findings of the Sales Tax Department, Government of Maharashtra that the assessee was a beneficiary of bogus purchase bills given by the entry providers, the AO made an addition of the above amoun....
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....e restricted at certain percentage (profit margin) of suspicious/bogus purchases. Finally, it is stated that the company has already closed down its business activities during the year 2016 because of heavy losses over the years. 6. On the other hand, the Ld. DR submits that the order passed by the Ld. CIT(A) be confirmed as there was repeated non-compliance by the assessee before the AO as well as the CIT(A). Facts being in the arena of bogus purchases, the Ld. DR submits that the order passed by the Ld. CIT(A) confirming the addition of Rs. 37,17,321/- made by the AO be confirmed. 7. We have heard the rival submissions and perused the relevant materials on record. As mentioned earlier there is repeated noncompliance by the assessee ....