TaxTMI 
TaxTMI 
2015 (12) TMI 457
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....hey are being disposed of by this common order, for the sake of convenience. 2. In all the three years, the assessee is aggrieved by the decision of Ld CIT(A) in confirming the rejection of books of account and consequent estimation of income. 3. The facts relating to the issue cited above are stated in brief. The assessee is engaged in the business of trading in diamonds. The revenue carried out a survey operation u/s 133A of the Act on 07-07-2008 at the business premises of the assessee. The revenue also carried out survey operations in the hands of other concerns named M/s Basant Dia Jewels and M/s Mox diam. Consequent to survey operations, the ADIT (inv) recorded a statement u/s 131 of the Act from Sri Basant Jain, proprietor of M....
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....tertained the view that the purchases and sales shown in the books of accounts of the assessee herein are non- existent and accordingly rejected the books of account. Accordingly the assessing officer estimated the commission income receivable on providing accommodation bills at 2% of the sales reported by the assessee for all the years under consideration. After allowing deduction of 20% towards estimated expenses, the assessing officer determined the total income of the assessee as under:- Assessment Year Returned income Assessed income 2007-08 60,858 11,00,639 2008-09 1,69,571 1,34,11,231 2009-10 (-) 10,79,210 1,33,93,130 4. In the sworn statement, Shri Basant D Jain had stated that the di....
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....the affidavit. 7. The assessing officer, during the course of assessment proceedings, issued commission u/s 131(d) of the Act to the Asst. Director of Income tax (Inv.), Surat in order to verify the purchases and sales recorded by the assessee. However, the Deputy Director of Income tax reported that the concerned parties are not available in the given addresses. When the report given by the Deputy Director of Investigation was confronted with the assessee, it filed the ledger account copies duly confirmed by the concerned parties, copy of acknowledgement of return of income filed by them in order to establish the genuineness of the purchase and sales transactions. However, the AO chose to reject all these documents, but placed reliance ....
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....from this, it is a fact that the AO has not brought on record any other material to support his conclusions. 10. We have earlier noticed that the director of the assessee company has retracted from the statement of confirmation given by him earlier within a period of one month by filing an affidavit. In the said affidavit, it has been clearly stated that the survey officials entered his office premises at 1.30 pm on 07-07-2008 and they left the office at 3.00 am on 09-07-2008. Further, it was stated that he was forced to accept the nature of business carried on by the assessee as that of providing accommodation bills only. Hence, in our view, the assessing officer could not have placed reliance on the statement given by the director of t....
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....e month should be given due weight, more particularly in view of the fact that the survey officials did not unearth any incriminating documents during the course of survey operations. 11. The assessing officer has also placed reliance on the report given by the DDIT (inv.), wherein he had stated that the customers/suppliers of the assessee were not available in the given addresses. When the report given by the DDIT was confronted with the assessee, it has furnished following documents to the assessing officer:- (a) Ledger account copies duly confirmed by the concerned parties. (b) Copies of income tax return filed by them. However, we notice that the assessing officer chose not to examine those documents and he chose to place fu....