TaxTMI 
TaxTMI 
TaxTMI 
2016 (12) TMI 1476
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.... of jurisdiction by issuance of the notice of reassessment U/s 148 is based on some vague deposition of third party without bringing any material on record to confirm the existence of nexus between statement and receipt of money. 5) That no opportunity was given to the assessee to cross examine the material based on which assessing officer arrived at the conclusion that assessee is beneficiary of alleged accommodation entries. 6] That the assessing officer made addition of Us. 3550000/- and confirmed by the learned C1T(A] on account of sale of investment merely on the basis of suspicion without bringing any adverse material on records. 7) That genuine sale of investments held in shares of other company has wrongly been added to the income of appellant merely on the basis of evidence procured from third party without putting the evidence (bank statements etc.] for cross examination of the assessee. 8) That 20% expense of Rs. 2780187 have been disallowed on the basis of guess work and sustained by the learned CIT(A), when the accounts are audited by the chartered accountant and have been prepared by following various guidelines and accounting standards prescribed under the st....
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....m the assessee has sold certain investments held in M/s futuristic sales private limited. The assessee submitted before the assessing officer the confirmation letter. However, those conformation letters were disbelieved and the Ld. assessing officer in order to verify the correctness of the claim of the assessee, he issued enquiry letter under section 133 (6) of the income tax act through his inspector. However, the report was received from the inspector that these parties are not found in existence at the given address and therefore assessee was required to produce them in order to discharge its onus to prove their identity, creditworthiness and genuineness of the above transaction of the sale of the shares. In view of this, the assessing officer held that the above transaction is bogus and his view was further supported from the information called from the bankers of those parties wherein the bank statement received revealed that the cash has been deposited in the respective accounts, before the clearance of cheque to the assessee company. The Ld. assessing officer was also privy to the information from investigation wing that the these parties are among the group companies....
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....sessing officer with respect to the beneficiary being appellant of the accommodation entries for which the addition has been made. He therefore submitted that the assessment made by the Ld. assessing officer and confirmed by the the 1st appellate authority is without giving proper opportunity of hearing to the assessee and to rebut the evidences collected by the Ld. assessing officer. 6. In response to this Ld. departmental representative submitted that the assessee has been given enough opportunity of hearing before the 1st appellate authority as well as before the assessing officer. However, it failed to comply with the condition of producing the parties before the Ld. assessing officer and hence the addition has been rightly made by the Ld. assessing officer and confirmed by the 1st appellate authority. 7. We have carefully considered the rival contentions and perused the material available before us. Undoubtedly, the assessee has sold the investment of shares in one company held by it as an investment in the past year. However, the investment have been sold to the 2 parties whose name, address, permanent account number was furnished by the assessee to the assessing officer, b....
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....es held by the assessee as investment. In the result ground No. 6 and 7 of the appeal of the assessee are allowed with above direction. 8. The ground No. 8 of the appeal of the assessee was against the disallowance of Rs. 2896040/- being 20% of the expenses claimed by the assessee of Rs. 14480187/-the above disallowance has been made by the Ld. assessing officer as the assessee has failed to produce the books of accounts with supporting bills and vouchers before the Ld. assessing officer. Therefore, the correctness of the claim made by the assessee remained unverified. And, therefore, the Ld. assessing officer rejected the books of accounts applying the provisions of section 145 (3) of the income tax act and disallowed 20% of those expenses amounting to Rs. 2896040/-. On appeal before the 1st appellate authority, he has granted relief to the assessee to recompute the addition based on 20% of disallowance out of purchases and other disallowances excluding opening stock of the current year, or closing stock of the previous year. Before the 1st appellate authority the appellant submitted that the books of accounts could not be produced before the Ld. assessing officer because of deat....