TaxTMI 
TaxTMI 
2018 (4) TMI 398
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....t done any purchase and sale of jewellery but issued cheques in lieu of cash given by the assessee. ii. Any other ground that the appellant would raise during the course of appeal the amending, deleting modifying or adding any other ground of appeal. 2. The assessee has filed a cross objection and has raised the following grounds : 1. Id CIT (A) is not justified in law and facts and circumstances of the case in confirming the initiation of proceedings u/s 147 of the I T Act. 2. Id CIT (A) is not justified in law and facts and circumstances of the case is not justified in confirming the action of assessing officer in initiation of re-assessment proceedings in absence of any tangible and specific material against the assessee under the circumstances when assessing officer has admitted in his letter dated 24-02-2006 that no such material against the assessee is on record. 3. Id CIT (A) is not justified in law and facts and circumstances of the case in confirming the action of assessing officer in initiation of re-assessment proceedings u/s 147 by the assessing officer and merely on the basis of a general statement and a circular letter issued by ....
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....aring to represent it is case therefore, we decide the issue on the merits of the case as per information available on record. 6. We have carefully considered contentions of the Ld. DR and also considered the contentions of assessee raised at various appellate forum earlier. We have also carefully considered the direction of the Hon'ble Delhi High Court. Further coordinate bench in case MS. Sarla Jain, wherein identical direction was given by Hon'ble Delhi High Court, has decided issue as under:- "3. We have perused the submissions advanced by both the sides in the light of the records placed before us as well as the directions of Hon'ble High Court vide order dated 14/03/12 passed in a group case, where ITA No. 764/2010 pertains to the appeal filed by the revenue against the present assessee. It is very much necessary to reproduce the relevant extract of the observations of Ld. CIT (A) on merits on this issue which is as under: "8. Now coming to the merits of the case, it is very clear from the details filed during the course of the assessment proceedings as well as the appellate proceedings that the jewellery in question was declared under VDIS Schem....
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....ding accommodation entries wherein he used to issue cheques from various bank accounts under his control against the cash received from the person who used to approach Sh. Aggarwal through mediator. 8.3. However, it is observed that the Assessing Officer has passed the assessment order in clear violation of principles of natural justice. He has neither provided copies of any seized material to the appellant nor has allowed the appellant to cross-examine Sh. Manoj Aggarwal. The Assessing Officer it seems has heavily relied on the assessment in the case of M/s Bishan Chand Mukesh Kumar based on the statement of Sh.Aggarwal. Even if the statement of Sh. Aggarwal is taken as gospel truth, it cannot be made the basis of addition without confronting the appellant. It is well settled proposition of law that any evidence gathered behind the back of the assessee cannot be used against him without providing him an opportunity to rebut the same. Therefore, on this ground alone, the enti e addition deserves to be deleted, more so, when the transactions stand duly reflected by the appellant. 8.4. It is also observed that the Assessing officer chose not to make any comments on ....
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....Vs Smt. Jyoti Prakash Chhabria & Ors. (Mumbai) in ITA Nos. 1592, 1593, 1601, 1602 & 1603/Mum/2004: Asst. yrs. 1998-99 & 1999- 2000, (2006) 99 TTJ (Mumbai) 351, confirmed the order of the CIT(A) deleting such addition u/s 68 and 69C taking into consideration the declaration under VDIS, manner of transaction, absence of material regarding payments of commission, and other relevant facts. Similar addition on similar facts and circumstances was .deleted in the case of Asst. CIT Vs Surya Kanta Dalmia, IT AT, Kolkata 'A' Special Bench' in ITA No. 1054/KOL/2004: Assessment Year 1998-99 (2006) 99 TTJ (Cal)(SB) 1. The appellant has also placed reliance on the decision on the Hon'ble ITAT, Amritsar Bench, Amritsar in the case of ACIT vs. Sh. Jagdish Mitter in ITA No. 268(ASR)/2002, where again on same facts and circumstances as in the instant case, the addition u/s 68 while considering the sale of VDIS jewellery to M/s Bishan Chand Mukash Kumar Saraf was deleted by the Hon'ble Tribunal. 8.6. In view of the above discussion and respectfully following the decisions of various appellate authorities cited Supra, it is hereby held that the Assessing Officer w....
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.... High Court it is incumbent upon us to verify the genuineness of the sale transaction of jewellery by assessee to Bishan Chand Mukesh KumarjBemco Jewellers. The issue before us is that assessee disclosed jewellery under VDIS 1997, and sold jewellery to Bishan Chand Mukesh Kumar. Bishan Chand Mukesh Kumar, has already deposed that he has not purchased any jewellery but has issued bogus bills. It is a claim of assessee that she has sold jewellery to Bishan Chand Mukesh Kumar, who has denied of having purchased the same. In view of this it is apparent that assessee might have obtained cheque from Bishan Chand Mukesh Kumar without proving any sale of jewellery. The onus therefore lies on assessee to prove that a sum of Rs. 57,95,097/- has been received by her on account of sale of jewellery. The buyer being Bishan Chand Mukesh Kumar is the witness to the sale as assessee has produced the bills of purchases issued by Bishan Chand Mukesh Kumar. Therefore in view of the directions passed by Hon'ble Delhi High Court, we direct assessee to produce Bishan Chand Mukesh Kumar before Ld. AO along with their books of account and details of purchase/sale of jewellery. Ld. AO is direc....