TaxTMI 
TaxTMI 
TaxTMI 
2016 (5) TMI 704
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....dated 10.1.2015), 15.4.2015, 05.5.2015, 07.5.2015, 12.5.2015, 04.6.2015, 24.8.2015, 08.12.2015, 03.2.2016 and finally on 29.3.2016. From the order sheet entries it is noticed that on hearing of the dates; neither the assessee appeared nor was represented through his counsel. In such circumstances, we have been left with no other alternative except to decide this appeal ex parte in the absence of assessee after perusing the case records including the assessment order, order of CIT(A) and arguments of ld. Sr. DR. Hence, we proceeded to hear this matter and decide the same. 3. We find from these seven appeals that the grounds raised in all the seven appeals are identically worded, except the amounts. On merits there are two issues in all the seven appeals against the order of CIT(A) confirming the order of A.O. in making the disallowance u/s. 40A(3) on account of unaccounted cash purchases and also making an addition of outstanding liability u/s. 41(1) of the Act. Since, the grounds raised are common and identically worded, hence we are reproducing the grounds as raised in first appeal and also decide the issue on the basis of the same , i.e., in ITA No. 695/Mum/2011 for A.Y. 2002-03....
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....Income Tax Act.' 4. We have gone through the assessment order and seen that the assessment was framed ex parte u/s. 144/153A of the Act in all these seven assessment years. The facts of the case are that the search and seizure action u/s. 132 of the Act was conducted on the business and residential premises of the assessee and its associate concerns on 13.3.2008. During the course of search, certain documents were found and seized on the basis of which the AO framed assessments. We find that the assessee has not filed any return of income in response to notices issued u/s. 153A of the Act as well as no compliance was made to the notices issued u/s. 142(1) of the Act. In term of the above, the A.O. based on seized material estimated the additions u/s. 40A(3) of the Act on account of cash purchases and current liabilities u/s. 41(1) of the Act. Aggrieved, the assessee preferred appeals before the CIT(A). 5. The CIT(A) allowed various opportunities to the assessee by issuing notices for appearance but none represented and the facts as recorded by the ld. CIT(A) for passing ex parte order reads as under: '2.3.1 I have carefully and dispassionately considered the facts and circumsta....
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....ness of the payment and the identity of the payee are the first and foremost requirement for the applicability of rule 6DD(j). When these two factors are established, only then the question as to whether the payment in cash was made in exceptional or unavoidable circumstances can be examined. 2.3.3. In the appeals under consideration before the undersigned, the appellant has not even furnished the returns of income with reference to notices u/s.153A of the Act. No written submissions have been furnished, no arguments have been made although sufficient opportunities were granted to the appellant as discussed in para No. 2.2.1 & 2.2.2 above. Having regard to the facts and circumstances of the case and in law, the addition @ 10% of the unaccounted cash sales made by the appellant and disallowance u/s. 40A(3) as made by the AO in relevant AYs.2002-03, 2003-04, 2004-05, 2005-06, 2006-07, 2007-08 & 2008-09 are confirmed. Ground No. 6 is dismissed for all assessment years under appeal i.e. AYs. 2002-03, 2003-04, 2004-05, 2005-06, 2006-07, 2007-08 & 2008-09. 2.3.4 Ground No. 7: I have carefully and dispassionately considered the facts and circumstances of the case. The AO has given a....
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....rse of search proceedings, Annexure A-1 (70 Pages) and Annexure A-4 (15 Pages) were seized from the premises of Jhunjhunwala Distributors P. Ltd. at F/20, Ansa Industrial Estate, Saki Vihar Road, Powai, Mumbai - 72, on 14/03/08. The salient features of above two Annexures are as below: Annexure Al (70 pages)- Jhunihunwala Distributors P. Ltd. * Appears to be a payment receipt register, based on different cheque nos. The register totals is Rs. 19922429 for cheque transactions and Rs. 11987944 for cash transactions. The period of records is 30/06/04 to 02/08/04. The cash amount can be easily distinguished by the separate column titled as "Cash amt". There is a separate column which shows the person who has made the collection. Names such as "Direct", "Tiwari", "Nitin", "Pandey" etc. find place. Annexure A4 (15 pages)- Jhunjhunwala Distributors P. Ltd * Collection book The register total is Rs. 411750 for cheque transactions and Rs. 1216617 for cash transactions. The records are maintained party-wise. The collection book primarily pertains to the year 2006, with few stray transactions for the year 2007. Bill-wise records are kept. Many of the cash transactions ex....