TMI Blog2021 (1) TMI 685X X X X Extracts X X X X X X X X Extracts X X X X ..... ses can be added to income of the assessee. That being the position, not the entire purchase price but only the profit element embedded in such purchases can be added to the income of the assessee. - Decided against revenue. - ITA No. 4465/MUM/2019 - - - Dated:- 18-1-2021 - SHRI C.N. PRASAD (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) Revenue by : Ms. Smita Verma, DR Assessee by : None ORDER PER N.K. PRADHAN , A. M. This is an appeal filed by the Revenue. The relevant assessment year is 2010-11. The appeal is directed against the order of the Commissioner of Income Tax (Appeals)-33, Mumbai [in short CIT(A) ] and arises out of the assessment completed u/s 143(3) r.w.s. 147 of the Income Tax Act 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n from the Sales Tax Department, Government of Maharashtra that the assessee had obtained bogus purchase bills from two parties i.e. Goodluck Impex (₹ 15,733/-) and Suraj Steel (₹ 2,50,414/-), the Assessing Officer (AO) reopened the assessment by issuing notice u/s 148 of the Act. In response to the notice u/s 148, the assessee filed a letter dated 19.08.2013 before the AO, requesting the original return to be treated as returned in response to the notice u/s 148 of the Act. During the course of reassessment proceedings, the AO issued notice u/s 133(6) to the above two parties. However, those notices were returned un-served by the postal authorities. The AO asked the assessee to produce the above two parties before him for exami ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nces of the case, additional profit of 30% is estimated in obtaining accommodation entries from the parties who are not traceable and where purchase could not be verified. Therefore, the addition of 30% of ₹ 2,66,147/- = ₹ 79,844/- is sustained in case of purchase from Goodluck Impex and Suraj Steel and balance addition of ₹ 1,86,303/- is hereby deleted. 5. The Ld. DR submits that the order passed by the AO be confirmed because (i) as per the information received after inquiry from the Sales Tax Department, Government of Maharashtra that the assessee had obtained bogus purchase bills from the above two concerns, (ii) the notices issued u/s 133(6) by the AO were returned un-served by the postal authorities and (iii) t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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