TaxTMI 
TaxTMI 
2015 (10) TMI 740
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....atements have been used against the assessee. The action of the ld. CIT(A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by quashing the entire assessment order which is passed in gross violation of principle of natural justice. 2. In the facts and circumstances of the case and in law, the ld. CIT(A) has erred in confirming the action of the ld. AO in holding the purchases from the following parties as bogus. S.N. Name of parties from whom purchases made Amount in Rs. 1. M/s. Ashish Jewellers Rs. 2,44,500/- 2. M/s. Anupam Export Rs. 2,45,000/- Total Rs. 4,90,000/- The action of the ld. CIT(A) is illegal, unjustified, arbitrary and against the facts of the case....
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....d the provisions of Section 145(3) of the Act. The AO also observed that the assessee had made purchases from M/s. Ashish Jewellers for Rs. 2,44,500/- and M/s. Anupam Export for Rs. 2,45,500/- totaling to Rs. 4.90,000/-. The AO observed that as per information received from the BCTT and Investigation wing, it was revealed that these concerns are involved in issuing bogus bills and both are entry providers in the gems and jewellery business without physical delivery of goods. These persons are charging commission @ 0.20% to 0.25% of the quantum for issuing the bogus sale bills and in some cases the commission was even as high as 0.50% to 0.60%. The ld. AR of the assessee vide order sheet entry dated 6-12- 2010 was asked to produce the above ....
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.... details of stock but complete details cannot be said to have maintained especially when quantitative details of the stock have not been maintained. The co-relation between the purchases and the stock cannot be established. Further the valuation of the closing stock is only on estimate basis which is not capable of complete verification. As regards purchases from these parties are concerned, it is seen that the details furnished by the appellant can at best only prove the paper existence of these firms. The verification of transactions cannot be said to have been completely made because of the non-production of the parties for examination." Further, the ld. CIT(A) has relied upon various decisions where "it was held that non-verifiable pur....
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....ard the rival contentions and perused the materials available on record. This Bench of ITAT has taken decision to apply 15% net profit rate on unverifiable purchases in the cases of Anuj Kumar Varshney and others vs. ITO (ITA No. 187/JP/2012 dated 22-10-2014). However, assessee's request is accepted and the AO is directed to reframe assessment order by considering outcome on this issue as appeal in case of un-verifiable purchases/ bogus purchases is pending before Hon'ble Rajasthan High Court. 8. As regards the first ground of the assessee for not providing opportunity of cross examination, we find that this issue has not been seriously argued by the ld. AR of the assessee. However, the Bench has offered to allow cross examination ....