TaxTMI 
TaxTMI 
2015 (7) TMI 362
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....d in the circumstances of the case and in law, the ld.CIT(A) erred in relying upon judgement in the case of CIT v/s Nikunj eximp Enterprises Pvt. Ltd. without appreciating that the facts involved in the appellant's case are different from the facts of the above case law. 3.On the facts and in the circumstances of the case and in law, the ld.CIT(A) grossly erred in not appreciating the fact that notices under 133(6) issued to parties from whom alleged bills were received, were returned undelivered by the postal authorities. 4.On the facts and in the circumstances of the case and in law, the Id. CIT(A) grossly erred in not appreciating the fact that the assessee failed to produce the parties from whom the alleged bills w....
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....ternational 19,597/- 6. Vardhman Trading Company 46,73,578/- 7. Vitarag Trading Company 32,02,628/- Total 1,37,65,667/- In view of the above information,vide his show cause notice dt.6.2.13,the assessee was asked as to why the alleged purchase from the above mentioned sever parties aggregating to 1.37 crores should not be treated as unexplained expenditure. The AO provided the assessee the copies of statement recorded by the sales tax department.In response to the above,the assessee filed a letter dt.12.2.2013 and argued that the purchases made by him were genuine,that purchase of material was duly recorded in the books of account, that the parties concerned had submitted relevant supporting....
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....ty(FAA).Before him,it was contented that all material purchase and issuance made were duly recorded and accounted for in inward and outward movement register,that the assessee submitted material register before the AO showing the receipt of material from the parties mentioned in the show cause notice. He also furnished copies of invoice and L/R of receipt of inward material purchased,bank statement showing payment made by cross Account payee cheques to the above mentioned parties,copies of VAT returns, IT returns and confirmation of the impugned parties along with their MVAT reports and acknowledgements. It was argued that the AO had not treated the purchases bogus,that he was merely relying on the list of the suspicious dealers published b....
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.... the fact that assessee had specifically asked the same.The FAA relied upon the case of Ponkunnam Traders (102 ITR 366) of the Hon'ble Kerla HC and finally deleted the addition made by the AO. 4. Before us,Departmental Representative(DR)relied upon the order of the AO. Authorised Representative (AR) supported the order of FAA and relied on the following cases Rajiv G Kalathil (ITA/6727/Mum/2012,dated 20.08.2014), Ramila Pravin Shah (ITA/5246/Mum/2013, dated 05.03.2015), Rameshkumar & Co.(ITA/2959/Mum/2014,dated 28.11.2014) Deepak Popatlal Gala (ITA/5920-6203/Mum/2013,dated 27.03.2015).He further argued that the payments were made through banking channels,that cross examination of the above referred seven parties was not allowed even thou....
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....dition as one of the supplier was declared a hawala dealer by the VAT Department. We agree that it was a good starting point for making further investigation and take it to logical end.But,he left the job at initial point itself. Suspicion of highest degree cannot take place of evidence. He could have called for the details of the bank accounts of the suppliers to find out as whether there was any immediate cash withdrawal from their account.We find that no such exercise was done. Transportation of good to the site is one of the deciding factor to be considered for resolving the issue.The FAA has given a finding of fact that part of the goods received by the assessee was forming part of closing stock.As far as the case of Western Extrusion ....