TaxTMI 
TaxTMI 
2020 (1) TMI 400
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....- under section 143(3) read with section 153A of the Act on vide order dated 31.01.2013. A search and seizure operation was carried out in the case of Bhanwarlal Jain Group on 03.10.2013 wherein it was revealed that said group is providing accommodation entries to various concerns. The assessee has alos received accommodation entries of Rs. 6,01,50,246/- from A. Jewels and Rs. 9,73,17,596/- from M/s. Kothai & Co. totaling to Rs. 15,74,67,842/- from the concerns controlled by Bhanwarlal Jain Group. On the basis of, information received from Investigation Wing, the assessment of the assessee was reopened u/s.147 and after recording reasons and notice under section 148 of the Act was issued. In response to which the assessee has filed his return of income on 22.04.2014 disclosing total income at Rs. 27,11,150/-. However, the AO observed that the bogus purchases were reported by the Investigation Wing in respect of above two parties. Therefore, the purchases amounting to Rs. 15,74,67,842/- were treated as bogus on the basis of statement recorded from Shri Bhanwarlal M. Jain during the course of search and seizure proceedings. However, applying the ratio of decision in the case of Vijay....
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....o furnish particulars of his income and omits to furnish them, he thereby conceals the particulars. Accordingly, the CIT (A) viewed that explanation 1 to section 271(1)(c) raises a presumption that as and when any amount is added or disallowed in computing the total income the same shall be deemed or represented the income in respect of which particulars have been concealed. Similar view was expressed in the case of A.M. Shah & Co. v. CIT 238 ITR (Gujarat). Accordingly, levy of penalty under section 271(1)(c) was upheld. 5. Being, aggrieved the assessee filed this appeal before the Tribunal. The learned counsel for the assessee submitted that in response to notice under section 133(6) issued by the AO, both the parties have filed reply and confirmed the transaction and accepted having sold diamonds to assessee. The assessee has also filed copy of confirmation, bank account statement for payment of account payee cheques that purchases are genuine. The assessee has also filed day to day quantity account wherein receipts of polished diamonds were found corresponding to sales also. The assessee has also requested to cross examination of the person whose statement were relied upon bu....
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....ame was relied in penalty order by the AO. The learned counsel for the assessee further place reliance in the case of CIT v Reliance Petro-products Pvt. Ltd. [2010] 322 ITR 158 (SC); [2010] 189 Taxman 322(SC) for support of his contentions. 6. On the other hand, Ld. D.R. supported the order of lower authorities and submitted that purchases made by the assessee were not genuine hence, the penalty has been rightly imposed and confirmed. 7. We have heard the rival submissions and perused the relevant material on record. We have gone through the case laws relied upon the learned counsel for the assessee. We find that the assessee is doing the business of trading of polished diamonds. The books of accounts are audited u/s.44AB and quantitative details have been maintained by the assessee. A search u/s.132 was conducted at the premises of Bhanwarlal Jain Group and during the course of statement Shri Bhanwarlal M. Jain and Shri Lunkaran P. Jain that they are issuing the bills of accommodation entries. They further stated that they have received the consideration of such purchases by account payee cheques. Further, in reply to notice under section 133(6) they have accepted of having ....
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....p before the Hon'ble Punjab and Haryana High Court in the case of Harigopal Singh vs. CIT, 258 ITR 85 (P&H), wherein it is held that it was a difference of opinion as regards the estimate of income of the assessee, it could not be said that the assessee has concealed the income so as to attract the provisions of Section 271(1)(c). In the instant case, the assessee has filed the return of income and which was reopened on the basis of the statement of Shri Bhanwarlal M. Jain and on the basis of the statement, the assessee's income was estimated on the ground that the assumed bogus purchases bills and filing the ratio of Vijay Proteins 55 TTJ 76 (Ahd-Trib) and Mayank Diamonds Pvt. Ltd. v. ITO [Tax Appeal No. 200 of 2003] dated 17.11.2014 [2014] 11 (TMI) 812 (Gujarat) and thus, it income was estimated. In order to protect the clause (c) of Section 271(1) of the Act, it is necessary that there must be concealment by the assessee of particulars of his income or if he furnishes the inaccurate particulars of income. The assessee has maintained books of accounts and he has filed the return of income and during the course of search, the AO has estimated 25% profit which was record to 5 %....