TaxTMI 
TaxTMI 
2016 (4) TMI 347
X X X X Extracts X X X X
X X X X Extracts X X X X
....515/-, Rs. 31,82,439/- and Rs. 46,28,783/-; respectively, in proceedings under section 143(3) r.w.s. 147 of the Income Tax Act, 1961; in short "the Act". 2. Both the parties express agreement at the outset that relevant facts and circumstances involved in all the three appeals are identical. We accordingly treat ITA 1877/Ahd/2015 as the lead case. 3. We come to relevant facts first. The assessee-individual deals in semi-whole sale of iron, steel, alloy steel, steel hardware and tools as well as its allied products. He filed return on 30-07-2009 declaring income of Rs. 3,41,180/-. The same was processed. The Assessing Officer thereafter framed an opinion on reasons to believe that asesssee's income liable to be assessed had escaped ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of bogus purchases along with statement recorded u/s 14 of Maharashtra VAT Act, 2002 of 2060 Hawala dealers received from the Maharashtra VAT Department. During the investigation, the Assistant Commissioner of Sales Tax-15, Investigation Branch-B, Mumbai has recorded the statement of (i) Shri Ramesh Jaichand Ashra Prop, of R. D. Steel Corporation, (ii) Shri Tushar Ramesh Ashra Prop. Of Tushar Enterprises and (iii) Shri Kamal H. Shah prop. Of M/s. Shah Traders, Divya Traders and Kamal Traders. During the course of recorded the statement, the above persons admitted that they were doing business of 'only issuance of invoice without involvement of goods. They have stated that they never done any genuine sales or purchase of goods, but issu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ck register is not maintained by the Appellant, however, Appellant had furnished a detailed Chart showing disposal (Sale) of the Goods purchased from the alleged parties. It is also contended that the purchases are made at market rate from Kamal Traders, Tushar Enterprise and Divya Enterprise are fully supported by valid and legitimate bills and duly recorded in books of accounts. It is contended that copy of such bills were furnished before the AO for verification. During the appellate proceedings, appellant was requested to furnish before me all the evidences that were called for by the AO relating to purchases and sales, to which AR of the appellant has shown his inability to produce the evidences called for. Further, AR of the appell....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ad business of trading in Iron & Steel and usual trade practice was to purchase goods against the sale order and again on 18/7/2014 it is stated that the entire sales and purchases are in respect of finished goods and trade practice of business was to purchase the goods from various dealers against the verbal sale order of goods. _ From the P&L account it was noticed by the AO that appellant's Head Office is at Patan and branch office at Mumbai and debited Rs. 72,000/- on account of office rent. Appellant had not shown any property i.e. office building or godown in the balance sheet. The nature of business of appellant is such that it is not possible to maintain business at different places i.e. Patan and Mumbai and further it is not....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... in question corresponding to the impugned purchases already stand accepted. There is no issue that he has already placed on record all the relevant bills/vouchers, gate passes, delivery challans, proof of mode of payments and relevant confirmations on record in support of the purchases. Both the lower authorities doubt creditworthiness thereof without there being any rebut in all evidence except Maharastra VAT authorities information. The alleged hawala dealers have nowhere been allowed to be cross examined at any staged of the proceedings. We find that various co-ordinate bench decision of the tribunal in Hiralal Chunilal Jain vs. ITO in ITA 4547/Mum/2014 decided on 01-01-2016, ACIT vs. Ramila P. Shah in ITA No. 5246/Mum/2013 decided on 0....