2018 (4) TMI 1180

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....r u/s. 143(3)/147 of the I. T. Act, 1961 (hereinafter referred to as the 'Act') dated 27. 11. 2015. 2. Although, in this appeal, the assessee has raised three grounds of appeal but at the time of hearing the main grievance of the assessee has been confined to Ground Nos. 2 & 3 and Ground No. 1 was not pressed. The solitary grievance of the assessee in Ground Nos. 2 & 3 is that purchases made by the assessee at Rs. 9,36,314/- was not a bogus transaction/bogus purchase. 3. The brief facts apropos this issue are that the assessee is a partnership concern engaged in the business of jewelry manufacturing and trading. Consequent upon the search proceedings, on Shri Goutam Jain & Others (Surat Diamond Concerns) Group (the Group referred to a....

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....ssee was into the business of giving accommodation entries for purchases etc. The total sales shown by that supplier viz Sparsh Exports Pvt. ltd to the assessee was Rs. 20,73,726/-. Therefore, the assessment of the assessee was reopened u/s 148 and this purchase of Rs. 20,73,726/- was treated as bogus and added to the income of assessee. Considering these facts, the ld CIT(A) directed the assessing officer to inform the DDIT(Inv) to locate the right person to whom this entry was given in respect of the bogus purchase/unaccountedamounts,(being, bogus purchase of Rs. 9,36,314/- and an unaccounted expenditure at Rs. 11,37,412/-). 5. Not being satisfied with the order of the ld. CIT(A), the assessee is in appeal before us. The ld. Counsel fo....

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....nst assessee which was obtained by enquiry, it should have been cross-examined and for that an opportunity should be given to the assessee. 6. On the other hand, the Ld. DR for the Revenue has primarily reiterated the stand taken by the Assessing Officer, which we have already noted in our earlier para and is not being repeated for the sake of brevity. 7. We have given a careful consideration to the rival submissions and perused the materials available on record, we note that as per the reply made by M/s Sparsh Exports Ltd. , in response to notice u/s 133(6), wherein it was mentioned that assessee purchased the goods worth Rs. 20,73,726/-, whereas the assessee has shown purchases made from M/s Sparsh Exports Ltd. in his books of accou....

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....the assessee maintains stock register and Assessing Officer has not examined the stock register to find out whether amount of Rs. 20,73,726/- belongs to assessee or not. We also note that Assessing Officer made the addition purely based on the reply of the notice u/s 133(6) which was given by M/s Sparsh Exports Pvt. Ltd, stating that the assessee made purchase goods worth Rs. 20,73,726/-. The statement of M/s Sparsh Exports Pvt. Ltd. has not been cross-examined with the assessee, that is, the Assessing Officer has not given an opportunity to the assessee to examine the statement furnished by M/s Sparsh Exports Ltd. The Assessing Officer cannot use the material against assessee by keeping the assessee in dark. 7.3 We note that the assesse....