TaxTMI 
TaxTMI 
2015 (1) TMI 792
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....red in deleting the addition of Rs. 10,40,875/- made by AO on account of bogus purchases; 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in accepting additional evidence in contravention of Rule 46A. Without granting an opportunity to the AO" 3. Brief facts of the case are that the information was received from ITO 14(3)(2) that accommodation bills were issued by the various parties to the assessee, who was proprietor of M/s Baggit. The information stated that survey u/s 133A was conducted on 13.2.2009 in the cases of following person : i) Shri Rakeshkumar M Gupta, Propo.of M/s Manoj Mills; ii) Smt. Hema R Gupta of M/s Shree Ram Sales and Synthetics and iii) Shri Mohit R Gupta Prop. ....
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....ecorded in the books of account as the assessee was engaged in the business of making designer ladies hand bags for which she had to purchase fabrics as main raw material. The entire purchases of Rs. 10,40,875/- was made from these two parties only, which have been used for manufacturing of bags. The manufacuring and sale has not been disputed. The AO recorded the statement of Shri Rakeshkumar M Gupta and held that the purchases shown by the assessee from these parties is bogus and accordingly he added a sum of Rs. 10,40,875/- to the total income of the assessee. 4. In the first appellate proceedings, the ld. CIT(A) required the assessee to give evidence regarding the genuineness of purchases, proof of delivery, transport receipt etc. Th....
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.... 2537;6.11.2001 10 Shree Ram Sales and Synthetics 25/09/2001, Glitter stitch fabrics 447, Rs. 1,03,125/- Delivery at shop 2665;21.12.2001 The ld. CIT(A) further required the assessee to produce the stock register to prove the consumption of raw material for the purpose of the manufacturing. In response the stock register was produced and was examined by the ld. CIT(A) in detail and observed that the CIT(A) has wide powers and can direct the assessee to produce any information or material for deciding the case and Rule 46A does not place any bar on the right of the assessee to produce additional evidence as directed by the First Appellate Authority. Accordingly, he held that the documents as prod....
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....laced reliance on the decision of the Mumbai Bench in the case of Jitendra Harshadkumar & Co. V/s DCIT in I.T.A. No. 3141/Mum/ 2012 (AY-2005-06) dated 31.10.2013. Thus this issue is squarely covered by the aforesaid decision of the Tribunal. 7. We have heard the rival submissions, perused the relevant record and also gone through the impugned order. The assessee is engaged in the business of manufacturing of ladies bags/purses and for this purpose, the assessee has purchased raw material from various parties. The assessee had made aggregate purchases of Rs. 10,40,875/- from Shri Rakeshkumar M Gupta and Smt. Hema R Gupta, who were the persons in whose case survey had taken place and during the course of survey they have admitted that they....