TaxTMI 
TaxTMI 
2017 (11) TMI 861
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....he Ld.CIT(A), erred in deleting the addition of Rs. 2,03,27,686/- and Rs. 1,01,41,985/- made u/s.69C of the I.T. Act, 1961, by treating the purchases as genuine. 2. On the facts and in the circumstances of the case, and in law, the Ld.CIT(A) erred in relying upon judgements in the case of CIT Vs. Nikunj Eximp Enterprises Pvt. Ltd. without appreciating that the facts involved in the appellant's case are different from the facts of the above case law. 3. On the facts and in the circumstances of the case, and in law, the Ld.CIT(A) has grossly erred in accepting the assessee's claim though the parties have already accepted in their statement on oath that they have not entered into any business with the assessee before the Sales-Tax Authorities. 4. On the facts and in the circumstances of the case, and in law, the Ld.CIT(A) grossly erred in not appreciating the fact that alleged bills were not supported by supply of goods and the notices u/s.133(6) issued to parties from whom alleged bills were received were returned undelivered by the postal authorities. 5. On the facts and in the circumstances of the case, and in law, the Ld.CIT(A) has gross....
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....ries on the ground that the liabilities has ceased to exist, which was added back to the income of the assessee by the AO, vide assessment order dated 29-12-2011 passed by the AO u/s 143(3) . Further, the assessee was asked to prove genuineness of the purchase transactions in respect of following seven parties and was asked to submit supporting bills/invoices, proof of supply of goods/services, transportation receipts, delivery challans, proof of payment and bank statements of these seven parties. SI. No. Name of the Party Amount (In Rs.) 1 Tara Enterprise 15,48,287.00 2 Deep Enterprises 42,16,943.00 3 V. K. Enterprise 2,85,002.45 4. Balaji Traders 1,46,880.00 5 Viiay Enterprise 87,16,468.00 6 Harsh Corporation 3,93,770.00 Total 1,88,58,453.45 The assessee only submitted confirmation and other documents w.r.t. Vijay Enterprise but could not submit any documents w.r.t. other six suppliers including corroborative evidences to prove genuineness of the purchases. The AO held that the purchases made from these six suppliers were not genuine as the assessee has not purchased any goods and services from t....
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.... during remand proceedings. The A.O submitted in remand report that notices u/s 133(6) sent to the abovesaid ten selling parties had been received back un-served and the names of all these parties appear in the list of Hawala Dealers maintained by the Maharashtra VAT Department and purchases cannot be termed as genuine. The A.O, however, did not commented anything with respect to the stock registers, inward movement, various delivery challans available and that the payments made by account payee cheques to these parties by the assessee. The learned CIT(A) observed that the assessee has submitted stock registers including confirmations from these parties . The learned CIT(A) observed that the assessee has submitted inward register of stock and consumption of material has been explained. The learned CIT(A) studied and analysed the profitability ratios of the assessee as also month wise consumption of various input for the period for construction activities . The learned CIT(A) observed that merely because notices u/s 133(6) were returned unserved is not sufficient to fasten the liability to tax on the assessee. He relied upon decision of Hon'ble Bombay High Court in the case of CI....
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.... be confirmed. Ld. Counsel for the assessee submitted that additional evidences were given before the learned CIT(A) and remand report was called by learned CIT(A) from the A.O. after verification of the additional evidences which were forwarded by learned CIT(A) to the AO for necessary verification and remand report. The learned counsel for the assessee drew our attention to the remand report issued by the AO which is placed at paper book/page 325- 327. It was submitted that reply was given before the A.O. during remand report proceedings which is placed in paper book/page 21-25. The learned counsel for the assessee relied upon the appellate order of the learned CIT(A) wherein additions as were made by the AO were deleted by learned CIT(A). The learned counsel for the assessee also relied upon the decision of the Mumbai-tribunal in the case DCIT v. Remi Process Plant & Machinery Ltd. in ITA no. 1723/Mum/2015 for AY 2011-12 (cross appeal- a/w ITA no. 1817/Mum/2015), ACIT v. Priti Bipin Modi in ITA no. 4106/Mum/2016 ( CO-a/w Co. No. 147) for AY 2010-11 vide orders dated 18-08-2017 and also decision of Hon'ble Bombay High Court in the case of CIT v. Ashish International in ITA no.....
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....ransactions from these ten selling parties from whom the assessee had allegedly purchased material for its construction business. The assessee could not produce evidences w.r.t. movement of material before the A.O. . The assessee also could not produce the parties before the A.O . The AO made additions to the tune of 100% of alleged bogus purchases to the tune of Rs. 3,04,69,671/- vide assessment order passed u/s 143(3). The assessee during appellate proceedings before learned CIT(A) submitted details such as stock details, quantitative details as well utilisation/consumption details w.r.t. material so purchased by the assessee from these ten selling parties . The details of evidences submitted by the assessee before learned CIT(A) are as under: " i Paper Book I containing the work order form MCGM, certified payment order, details of contract receipts with bank statement evidencing the receipt of remittances from MCGM ii. Paper Book II containing purchase invoices, ledger a/c confirmation and bank statements evidencing the payments to each of the parties involved in disallowance. iii. Paper Book III containing purchase and consumption records (party wide,....
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....ppear in the list of hawala dealers prepared by Maharashtra VAT authorities . The said purchases claimed by the assessee are appearing in the books of accounts of the assessee and the onus is on the assessee to prove genuineness of the purchases. The learned AO did not commented on the documents/evidences produced by the assessee in remand report proceedings and has commented that notices u/s 133(6) sent afresh has also come back unserved and that these parties are listed as hawala dealers by Maharashtra VAT Authorities. The learned CIT(A) has accepted assessee's claim by holding that purchases are proved to be genuine and that consumption/utilisation of material for construction contracts stood proved. The learned CIT(A) did not undertook any verification himself of the documents/evidences filed by the assessee which he ought to have done as the AO could not do any verification due to non availability of these parties. The learned CIT(A) merely compared the preceding years GP ratio to accept the contentions of the assessee and directed to delete the additions made by the AO. The learned CIT(A) did not considered it relevant that notices u/s 133(6) sent twice by the AO returned uns....