TaxTMI 
TaxTMI 
2017 (3) TMI 1656
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....the Act and the AO completed the assessment on 30.01.2015,determining her income at Rs. 22.46 lakhs. 2.Effective Ground of appeal is about addition made to her income with regard to purchases. The AO received an information from the investigation wing that the sales tax department, Govt.of Maharashtra had made enquiries about bogus purchases/hawala transactions.The sales tax authorities had forwarded the list of beneficiaries who had taken bills from the hawala dealers.The AO observed that assessee had purchased goods worth Rs. 1.35crores from three parties namely Shri Garnesh Trading (Rs.27.73 lakhs); Kishna Chemical Works (Rs.27.85 lakhs) and Shreyas Marketing Agency (Rs.80.40 lakhs). The AO issued a notice u/s.148 of the Act .In respons....
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....t through banking channels,that the stock register and the consumption chart showed the nexus between the purchases and the sales made by the assessee,that details of closing stock were available on record,that there was no evidence to prove that assessee had received back the money in cash,that the AO had not rejected the books of account of the assessee,that the assessee was maintaining quantitative details of purchase and sales, that the AO had not pointed out any specific defects in the books maintained by her. After considering available material,the FAA held that the AO had made efforts beyond getting information from the investigation wing,that he had directed the AO to produce the parties,that the supplier were not found at the give....
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.... the relevant portion consisting the facts of the case, order of the FAA, arguments advanced by AR and DR before the Tribunal and the operative part of the order of the Tribunal which reads as under :- 2.In this appeal, although the assessee has raised multiple Grounds of appeal, but the substantive grievance is against the action of the CIT(Appeals) in confirming an addition of Rs. 4,19,356/- being estimated profit on unexplained purchases. 3. In brief, the relevant facts are that the appellant is a partnership firm, which is engaged in the business of export of consumer clothing. The return of income for assessment year 2009-10 was filed by the assessee declaring a total income of Rs. 3,49,320/-, which was subject to a scrutiny assessm....
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....before the Assessing Officer as well as before the CIT(Appeals) was that the purchases in question were duly supported by the bills of purchase. Moreover, the assessee pointed out that all its sales were by way of exports and that there was no evidence to say that the purchases in question were bogus. The assessee also referred to his bank statement to prove payments to such parties. The details of goods sold by the assessee was also furnished, which corresponded to the purchases effected from such four parties. The CIT(Appeals) has primarily affirmed the stand of the Assessing Officer based on the information stated to have been received from the Investigation Wing of the Department relating to the finding of the Maharashtra VAT Department....
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....27/03/2015; (2)Ramesh Kumar and Co. V/s. ACIT in ITA No.2959/Mum/2014 (A.Y. 2010-11) dated 28/11/2014; (3)DCIT v/s. Shri Rajeev G. Kalathil in ITA No.6727/Mum/2012 (A.Y.2009-10) dated 20/08/2014; (4)Shri Ganpatraj A. Sanghavi v/s. ACIT in iTA No.2826/Mum/2013 (A.Y.2009-10) dated 5/11/2014; and (5) Shri Hiralal chunilal Jain vs. Income Ta x Officer in No.4547/Mum/2014 dated 01/01/2016. On this basis, the plea of the assessee is that the entire addition is liable to be deleted. 5. On the other hand, the Ld. Departmental Representative supported the orders of the authorities below by pointing out that the addition has been made on account of the enquiries conducted by the Sales Tax Department of the Government of Maharashtra and no e....
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....(supra) have held that the Assessing Officer was not justified in making additions merely on the basis of information obtained from the Sales Tax Department of the Government of Maharashtra without conducting any independent enquiries. Before the CIT(Appeals), one of the points raised by the assessee was with respect to an opportunity to cross examine the four 6 ITA No. 5427/MUM/2012 (Assessment Year : 2009-10) parties, but we find that no such opportunity have been allowed. Considering the entirety of facts and circumstances of the case and the aforesaid precedents, which have been rendered under identical circumstances, in our view, the CIT(Appeals) erred in sustaining the addition to the extent of Rs. 4,19,356/- instead of deleting the e....