TaxTMI 
TaxTMI 
2009 (6) TMI 601
X X X X Extracts X X X X
X X X X Extracts X X X X
....d No. 1.3 of the assessee: The learned CIT(A) has erred in ignoring the purchases and delivery made, goods have been entered in the stock register and sold. Ground No. 1.4 of the assessee: The lower authorities have erred in placing reliance on the alleged statements if any of Shri Ravi Haldia of M/s Sanjeev Prakashan Group without providing any material. Ground No. 1.5 of the assessee: The lower authorities have erred in rejecting the books of account and invoking the provisions of s. 145(3) of the Act. Ground No. 1.6 of the assessee: The learned CIT(A) has erred in holding that the purchases from three firms are doubtful and sustained the addition of Rs. 23,97,454. Ground No. 1 of the Revenue: The learned CIT(A) has erred in restricti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e. In another case Shri Pushpa Kumar Jain assessed with ITO Ward-2(1), Jaipur, it was found that M/s Abhay International was functioning at Surat and accordingly the Addl. Director of IT (Inv.), Surat made enquiries at the given addresses and found that no such business either in the name of M/s Abhay International or M/s Girish Diam was being done at the given addresses. From other sources, information was gathered and found that both the concerns were bogus concerns. Regarding Guman Impex, bank statement was examined and it was found that cash was withdrawn from that account after depositing the cheque of Rs. 2 lacs. The AO has not discussed anything about rest 5 suppliers. The AO however, held purchases from all the abovementioned 8 conc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ales declared at Rs. 2,68,65,383 which actually were at Rs. 8,91,61,174 by passing the order under s. 154 of the Act. Accordingly the trading addition was raised to Rs. 2,23,15,470. We concur with the views of the learned CIT(A) vide paras 5 and 6 of his order that no specific enquiries have been conducted by the AO in the case of abovementioned 8 suppliers. The assessment order has been passed in a mechanical way and it is apparent from the body of the assessment order itself. No purchases were made from M/s Abhay International. Still the AO has discussed a lot about M/s Abhay International, though nothing was with reference to the purchases made by the assessee. It appears that certain pages were borrowed from the assessment order in the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed anything about these concerns as well as M/s R.A. Gems and M/s G.G. Enterprises and M/s G.L. Gems. No summons under s. 131 of the Act were issued to any of the parties and no enquiries were made at least in six cases. This is true that the assessee by not producing these parties has failed to discharge its onus but at the same time, it is also apparent from the record that the assessee asked the AO to issue summons under s. 131 of the Act to these parties after submitting all the required details of these parties. However, the AO did not issue summons to any of these parties and therefore, the AO has also reached a conclusion without discharging and verifying the purchases. Purchases from M/s Girish Diam, V.C. Gems and M/s Paras K. Inter....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion of Rs. 5 lacs. Therefore, the assessee gets the part relief. Thus ground Nos. 1 to 1.6 of the assessee are partly allowed and ground Nos. 1 and 2 of the Revenue are dismissed. Ground No. 3 of the Revenue: The learned CIT(A) has erred in accepting additional ground under r. 46A of the IT Rules without recording reasons as per r. 46A of the IT Rules and further erred in accepting the genuineness of the cash credit of M/s Pincha Enterprises Rs. 5,00,000, and M/s Marudhar Milk Vita Products (P) Ltd. (10,00,000) of Rs. 15,00,000 even though the assessee could not adduce any evidence neither during assessment proceedings nor during the remand proceedings regarding genuineness of these cash credit entries. 4. The brief facts of the case are....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re also paid in the earlier assessment years and in fact four confirmations namely Shri Prem Chand Sancheti, Shri Shashi Maheshwari, Smt. Vimla Devi and Shri Yashpal Jain were filed before the AO vide letter dt. 11th Oct., 2007. In respect of remaining creditors, the AO verified for 9 of the creditors and accepted the genuineness of the creditors mentioned at p. 8 of learned CIT(A)'s order. The AO however, did not accept the credit of M/s Pinch a Enterprises for Rs. 5 lacs and M/s Marudhar Milk Vita Products (P) Ltd. for Rs. 10 lacs but in the comments of the remand report, it was mentioned by the learned CIT(A) that the learned Authorised Representative has stated that proprietor of M/s Pincha Enterprises, Shri Prakash Pincha is assessed t....