2017 (2) TMI 1192

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....hardware items on commission basis. The details of filing of returns, returned incomes, assessed incomes etc. in the case of Anita M. Kanda can be summarised as under: AY. ROI filed on Returned income Dt. of Assessment Order Assessed income 2009-10 19.09.2009 Rs.6,61,407/- 30/05/2014 Rs.12,97,297/- 2010-11 21. 09.2010 Rs.10,68,533/- 21/03/2013 Rs.14,33,640/-   As the issue involved in all the appeals is common, so, a single order is being passed to adjudicate the appeals. ITA/4696/Mum/2016, AY.2009-10: 2. Effective ground of appeal is about confirmation of addition of Rs. 6.35 lakhs. During the assessment proceedings, the AO found that the assessee had made purchases from Mahavir Enterprises (ME) and MR Corporation ....

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....e from ME and MRC was to be treated as unexplained expenses. Finally, he made an addition of Rs. 6, 35, 872/-to the income of the assessee. 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the First Appellate Authority (FAA).Before him, the assessee argued that she had made the purchases through valid tax invoices, that payments were made through banking channels by issuing account payee cheques, that the material purchased from the suppliers was used for sales made subsequently. The assessee produced the copies of purchase bills along with the copy of bank account before him. After considering the assessment order and the submission of the assessee, the FAA held that the AO had received information from the sal....

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....d upon the cases of Rajeev M. Kalathil(ITA/6727/Mum/2012), Ganpatraj A Sanghavi (ITA/2826/Mum/2013), Ramila P Shah (ITA/ 5246/Mum/2013), Shiv Shankar R Sharma (ITA/ 5149/Mum/2014) and (ITA 4260/Mum/2015), Govind Rathod (ITA/439/Mum/2016). The Departmental Representative (DR) contended that the suppliers had admitted of not having any godowns supplying goods to the assessee. 5. We have heard the rival submissions and perused the material on record. We find that the AO had found the name of the suppliers in the list of hawala dealers published by the sales tax authorities, that he was in possession of the statements made by them admitting issuing bogus bills, that he had issued notice u/s. 133 (6) of the Act, that he did not receive any repl....

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....It is true that the FAA has rejected the books, but, he has not given any reason for the rejection of the same. We would also like to mention that the FAA had without assigning any reason had disturbed the profit rates shown by the assessee. He should have called for an explanation of the assessee about fall in the GP for the year under consideration. There can be several reasons for variation in profit rates, so, only on that basis results of audited book should not be disturbed. Here, we would also like to reproduce the relevant portion of the order of the Tribunal in the case of Rajeev M. Kalathil(supra) and it reads as under: 2.4 .We have heard the rival submissions and perused the material before us. We find that AO had made the addit....