2017 (6) TMI 595

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.... issue were heard together and are being disposed of by this consolidated order for the sake of convenience. However, in order to adjudicate the issue, we make reference to the facts in ITA No.972/PUN/2016. 3. The assessee in ITA No.972/PUN/2016 has raised the following grounds of appeal:- 1. On the facts and in the circumstances of the case and in law, the Lower Authorities has erred in reopening the completed assessment u/s 147 of the Income Tax Act, 1961 on the basis of information received from DG Investigation, Pune. On the basis of certain Hawala transaction reported by Sales Tax Department, since such information do not have any live link to appellant case entire proceedings are bad in law and needs to be quashed. 2. On the fac....

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....owever, the Assessing Officer noted that the assessee had not maintained any stock register. Therefore, the theory of assessee that sales were out of same stock which were purchased from hawala dealers was found to have no basis. Further, the assessee could not produce the suppliers during the course of assessment proceedings. Therefore, the Assessing Officer held that 20% of total purchases made from the alleged parties needs to be added in the hands of assessee. Accordingly, addition of Rs. 9,94,792/- was made. 6. The CIT(A) noted that the dealer from whom the said purchases were made was not traceable on the given address nor any confirmation was filed from M/s. Parth Steel. Further, the assessee had not maintained any stock register an....

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....ed bogus purchases. 10. The learned Authorized Representative for the assessee in this regard pointed out that the goods manufactured and sold were exigible to Excise duty and the intermediary was M/s. Parth Steels. However, the goods eventually were sold to the assessee. The learned Authorized Representative for the assessee referred to the copy of invoice placed at page 13 of the Paper Book along with delivery challan and the invoice of Lata Steels, who had manufactured the said Excisable items, which also shows the Excise duty involved. It was pointed out by the learned Authorized Representative for the assessee that the said goods were directly sent to the consignee i.e. the assessee though the name of M/s. Parth Steels is also mention....

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....ribunal is that it had physically received the goods from the manufacturer itself, which were Excisable and the trail of the transportation of the said goods is clearly available. The assessee has placed on record the copy of invoice issued by M/s. Parth Steels along with delivery challans. However, the learned Authorized Representative for the assessee refers to the invoice issued by the manufacturer of the goods, who had also in the said invoice charged Excise duty on the goods being sold by them and had sent consignment to the premises of the assessee directly. Though the name of M/s. Parth Steels is also mentioned in the said invoice but the goods were directly delivered to the assessee. Further, the assessee during the course of assess....