2017 (10) TMI 627

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ellaneous Application. The submissions of the assessee in application are reproduced as under:- "2. In this case, the lower authorities have levied the penalty on 25% of the disallowance made in respect of purchases made from three parties, who were stated to be not found at their given address. In course of hearing, the applicant has contended that the three parties from whom it made the purchases of Emerald Tumble Shape is linked to export sale and its rate of purchase is at the same rate or at a lower rate compared to the purchases of same item from other parties. It was also stated that, the assessee by letter dated 22.11.2008 reproduced at page 3 of the assessment order, has categorically stated that the parties are traceable ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ing out of ITA No. 465/JP/10 (copy enclosed) and by third member decision in case of Deepak Dalela (2014) 161 DTR 0718 (Jd) (TM). 5. In case of Delhi HC relied by Hon'ble ITAT the fact are different from the assessee's case in as much as, the A.O. in the assessment proceedings offered on opportunity to cross examine the concerned person but assessee expressed its inability to cross examine. Further, in this case, the statement of other parties was also recorded which established that payment of commission made is bogus. In the present case, A.O. has not recorded statement of any of these parties in spite of the assertion of the assessee that these parties are available at the address given. Hence the facts of the assessee's case ar....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 7. It is submitted that. Hon'ble ITAT while confirming the levy of penalty, has not given any finding on the other arguments of the appellant. It is a fact on record that both the A.O. and CIT(A) have held that purchases as per the bills issued by these three parties have been made and that the same was exported. The assessee has demonstrated from the papers filed in the paper book that the items purchased as per these bills stood exported. It is also demonstrated that the rate at which purchases were made from these three parties are at same rate or at lower rate when compared with the rate where purchases are accepted by the A.O. These facts prove that purchases were made and there is no inflation in the purchases so made but the l....