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2018 (12) TMI 815

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....sment Year [AY] 2011-12 contest the order of the Ld. Commissioner of Income-Tax (Appeals)-47 [CIT(A)], Mumbai, Appeal No. CIT(A)-36/AP.19/14-15 dated 30/11/2015. The assessment for impugned AY was framed by Ld. Deputy Commissioner of Income Tax Central Circle-5, Mumbai [AO] u/s 143(3) of the Income Tax Act, 1961 on 29/03/2014 wherein the income of the assessee has been assessed at Rs. 377.31 Lacs after certain additions as against returned income of Rs. 345.29 Lacs filed by the assessee on 29/09/2011. The sole ground raised under the appeal reads as under:- On the facts and in the circumstances of the case and in law the Learned CIT(A) erred in directing that the disallowance of alleged bogus the purchases be retained to the extent of 14.....

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....133(6) was issued to all the suppliers but the same were returned back un-served by postal authorities. The spot verification of all these parties by Inspector revealed that none of the party existed at the given address. 2.3 The assessee defended the purchases, inter-alia, by submitting that the material was utilized at the sites and the purchases were backed by invoices and the payments were through banking channels. However not convinced, Ld. AO estimated the additions against the same at 18% which resulted into an addition of Rs. 26,20,522/- in the hands of the assessee. The Ld. AO also made additional disallowance of 4% against these purchases to account for wrong claim of VAT / Sales tax Input Credit. In other words, the action of Ld....

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....the assessee. The key personnel, during survey proceedings, admitted discrepancies in the purchase transactions. The notices u/s 133(6) issued to all the suppliers elicited no response and the spot verification revealed that none of the supplier existed at the given address. All these factors cast serious doubts on assessee's claim. Both the lower authorities, in our opinion, clinched the issue in the proper perspective and proceeded to make estimation against the same. However, keeping in view the overall factual matrix and the nature of assessee's business, the estimation, in our opinion, was on the higher side. Upon perusal of appellate orders for AYs 2009-10 & 2010-11 in assessee's own case, we find that the Ld. first appellate authorit....