TaxTMI 
TaxTMI 
2016 (7) TMI 682
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....e following persons. Sl. No. Particulars Pan Amount (Rs.) 1. Avazy Realcon Pvt. Ltd. 2nd Floor, Damodar Building Shamaldas Gandhi Marg, Kalbadevi Road, Mumbai-400 020. AAGCA2557F 85,932 2. Cyra Capital Pvt. Ltd. (formerly known as Gintel Capital Pvt. Ltd.) Raghuvanshi Mills Compound S.B. Marg, Lower Parel, Mumbai-13. AADCG2298J 28,53,543 3. Gopala Holding Pvt. Ltd. 2nd Floor, Damodar Building Shamaldas Gandhi Marg, Kalbadevi Road, Mumbai 400 020. AACCG7515R 38,05,792 4. Single Point Securities Solution P. Ltd. Raghuvanshi Mills Compound S. B. Marg, Lower Parel, Mumbai 13. AAGCS3081C 28,46,095 5. Elpro Properties Pvt. Ltd. 396, Kamat Industrial Estate Veer Savarkar Marg, Prabhadevi, Dadar, Mumbai 400 025. AABCE7462N 8,67,726 4. To verify the authenticity of the share application money, the Assessing Officer conducted enquiry by issuing notices under section 133(6) to the concerned parties. As observed by the Assessing Officer, notices issued to Gopala Holding Pvt. Ltd., Avazy Realcon Pvt. Ltd., returned back un- served by the postal subsequently. However, these two parties specifically filed their submissions before the Assessing Officer mentioning the new a....
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....ons have not only been reflected in the books of account of the assessee but also in the books of account of the concerned parties. It was submitted, the sales turnover of the concerned parties during the relevant year would suggest that the assessee is not the only person to whom they effected sales. Therefore, the doubt entertained by the Assessing Officer that concerned parties were only providing accommodation bills is not correct. It was further submitted, all these parties who effected sales to the assessee are the Income-tax assessee and maintaining regular books of account and there books of account are audited and the entire transactions have been disclosed in their return of income. It was submitted no adverse inference has been drawn against the sales transactions effected by them by the concerned Assessing Officers where these parties are assessed. 6. The learned Commissioner (Appeals), after considering the submissions of the assessee vis-a-vis the facts and material on record, found that the assessee during the relevant previous year has recorded sales of Rs. 537 crores and declared the net profit of Rs. 26.24 crores. The gross profit rate shown by the assessee is 14....
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....s of the opinion that purchases made remains to be fully verified, no additions can be made. Accordingly, he deleted the addition made by the Assessing Officer. 7. The learned Departmental representative, primarily, relying upon the observations made by the Assessing Officer in the assessment order, submitted, the assessee has not proved the genuineness of the purchase transactions by producing supporting evidence. The learned Departmental representative submitted, initially the concerned parties were not found in the addresses mentioned by the assessee though he admitted that all the parties have appeared before the Assessing Officer and responded to the notices issued by him. Referring to the statements recorded from the chairman of the assessee-company as well as representative of the selling companies the learned Departmental representative submitted, reading of the statement would show that the purchases are not genuine. He, therefore, pleaded for restoring the addition made by the Assessing Officer. 8. The learned counsel for the assessee vehemently opposing the contention of the learned Departmental representative submitted, in the course of assessment proceedings itself a....
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....in the earlier part of the order alleging non- furnishing of certain details stated to have been called for by the Assessing Officer. However, on a reading of the assessment order itself, it becomes clear that in course of assessment proceedings, in response to notices issued under section 133(6), all the suppliers appeared before the Assessing Officer and confirmed of having effected sales of goods to the assessee. In fact, during the assessment proceedings, the Assessing Officer not only had conducted a survey in the business premises of the assessee but also recorded statements from the directors of the company. Further, the Assessing Officer also has examined the directors/representatives of the five suppliers. On a perusal of the statement recorded from directors of the assessee-company and from the representatives of the suppliers, there is nothing to suggest that the sale/purchase transactions between the suppliers and the assessee are non-genuine. On the contrary, it is a fact on record that all the suppliers in response to the notices issued by the Assessing Officer have not only confirmed of having effected sales to the assessee but in the course of examination by the Ass....