2017 (11) TMI 1204

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....st the estimation made by the Ld. CIT(A) @ 7.86% of the unexplained expenditure of Rs. 61,36,358/-. The AO has made the addition of Rs. 61,36,358/- u/s 69C on account of bogus purchases. 3. Briefly stated, the facts of the case are that the Department conducted a search and seizure action u/s 132 on 03.10.2013 in Shri Rajendra Jain Group. As a result of search, it was known that the said Group was providing accommodation entries like bogus purchase, sale, unsecured loan, share capital etc. The Assessing Officer (AO) received information from the Director General of Income Tax (Inv.), Mumbai that the present assessee was also one of the beneficiaries who obtained accommodation entries of Rs. 61,36,358/- through Vitrag, one the group conce....

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.... 69C as unexplained expenditure. 4. Aggrieved by the order of the AO, assessee filed an appeal before the Ld. CIT(A). We find that the Ld. CIT(A) came to a conclusion that the profit element on the total component in dispute needs to be added to the income of the assessee. The Ld. CIT(A) estimated the gross profit shown by the assessee i.e. @ 7.86% on Rs. 61,36,358/- which comes to Rs. 4,82,318/-. Thus he restricted the disallowance to Rs. 4,82,318/- in place of Rs. 61,36,358/- made by the AO. 5. Before us, the Ld. DR submits that the Ld. CIT(A) has forgotten to take into account the statement given by Shri Rajendra Jain during the course of search and seizure action u/s 132 on 03.10.2013. He also submits that it was the duty of the a....

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....self) & Manish Jain Companies Name of Directors a. KriyaImpex Pvt. Ltd Rajendra S Jain (myself) & Manish Jain b. Sparsh exports Pvt. Ltd Rajendra S Jain (myself) &Surendra Jain c. Karnavatimpex Pvt. Ltd Sachin Pareek and Manish Jain d. Moulimani Pvt. Ltd Rajendra S Jain (myself) & Sachin Pareek Q.14 During the survey action undertaken at various office premises of yours; not a single piece of diamond has been found by respective survey teams though there is substantial turnover shown by various concerns controlled by you. Please state as to where do you keep your stock in trade. Ans. Sir, in this regard, I want to admit that we are engaged in business of bills shopping through all the concerns....