Reopening of case due to involvement of assessee in bogus purchases/accommodation entries

This case involves an appeal by Super Industries, a proprietorship, concerning the assessment year 2006-07. The Income Tax Appellate Tribunal had previously dismissed the appeal for non-appearance but later recalled the order. The assessee's case was reopened based on information suggesting involvement in bogus purchases and accommodation entries from specific trading companies. The Assessing Officer made an addition of Rs.13,03,692/- under Section 69C of the Income Tax Act after rejecting the assessee's explanations.

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH : SMC-1 : NEW DELHI
BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER

ITA No.2472/Del/2016
Assessment Year: 2006-07

Super Industries,
Prop. S. Jagjit Singh,
L/H Shri Joginder Singh,
N.7, Gali No.9,
Anand Parbat Industrial Area,
New Delhi.
PAN: AASPS8033M
(Appellant) 

Vs 

ITO,
Ward-33(3),
New Delhi.
(Respondent)

Assessee by : Shri Ramesh Goyal, CA
Revenue by : Ms Ranu Mukherjee, Sr. DR

Date of Hearing : 17.03.2021
Date of Pronouncement : 26.03.2021

ORDER

PER R.K. PANDA, AM:

This appeal filed by the assessee is directed against the order dated 15th September, 2015 of the CIT(A)-17, New Delhi, relating to assessment year 2006-07.

2. This appeal was earlier dismissed by the Tribunal for non-appearance.Subsequently, the Tribunal, vide MA No.118/Del/2017, order dated 16th February, 2018, recalled its earlier order. Hence, this is a recalled matter.

3. Facts of the case, in brief, are that the assessee is an individual and the proprietor of M/s Super Industries. It filed its return of income on 27th October, 2006 declaring the total income at Rs.1,89,640/-. Subsequently, the case of the assessee was reopened on the basis of information obtained that the assesseeindulged in bogus purchases/accommodation entries provided by Shri RakeshGupta, Shri Vishesh Gupta, Shri Navneet and Shri Vaibhav Jain. Accordingly, thecase of the assessee was reopened after recording reasons as per the provisions ofsection 147 of the Act. Notice u/s 148 dated 28th March, 2013 was issued and served upon the assessee. The AO, thereafter, issued statutory notices. Rejectingthe various explanations given by the assessee and observing that the assessee hasmade bogus purchase of Rs.13,03,692/- from Shree Bankey Bihari Trading Co. andShree Shyam Trading Co., which are owned by the persons named earlier, made addition of Rs.13,03,692/- u/s 69C of the IT Act. 

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