TaxTMI 
TaxTMI 
TaxTMI 
2020 (2) TMI 137
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....s of appeal for AY 2011-12:- 1. On the fads and circumstances of the Appellant's case and in law the Ld. Commissioner of Income Tax (Appeals) erred in confirming that the appellant has entered into accommodation transactions with Rajendra Jain Group, Sanjay Chaudhari Group and Dharmi Chand Group. 2. On the facts and circumstances of the Appellant's case and in law the Ld. Commissioner of Income Tax. (Appeals) erred in confirming the addition of Rs. 3,08,65,565/- made by the Ld. AO being 5.49% on account alleged non-genuine purchases of Rs. 56,22,14,315/-. 3. The Appellant craves leaves to add to amend, alter, modify and / or withdraw any or all above grounds of appeal, each of which are without prejudice to one another. The appellant prays this Hon'ble Tribunal to delete the addition/disallowances made by the Ld. Assessing Officer, which Is confirmed by the Ld. Commissioner of Income Tax (Appeals). ITA NO.7389/Mum/2018 for AY 2011-12:- 4. The revenue has raised the following grounds of appeal AY 2011-12: 1. "Whether on the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in reducing the net profit on non genuine purchases from 8% deter....
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.... to search, notice u/s 153A of the I.T.Act, 1961 was issued. In response to the notice, the assessee has not submitted any returns. Thereafter, notices u/s 142(1) was issued on 23/09/2016. The assessee has finally filed return on 08/10/2016, in response to notice issued u/s 153A. The case was selected for scrutiny and during the course of assessment proceedings, the Ld. AO on the basis of information gathered during the course of search and survey and also, taken note of various informations received from investigation wing, consequent to search operations carried out in the cases of entry providers, came to the conclusion that the assessee has obtained accommodation entries of bogus purchase bills from various parties and accordingly, made additions towards such bogus purchases @8% profit and made additions of Rs. 4,49,77,145/-. 6. Aggrieved by the assessment order, the assesee preferred an appeal before the Ld.CIT(A). Before the Ld.CIT(A), the assesee has submitted that the Ld. AO was erred in making additions towards purchase from certain parties, on the basis of statement recorded from them, during the course of search in their cases, ignoring, the fact that the assessee has j....
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....560 6,12,49,098 6,12,49,098 1.52 4.28 In the case of Naitik Gems the issue involved purchases from entities belonging to Rajendra Jain entities and the purchases were from Sparsh Exports PVt Ltd. The assessing officer made a disallowance of 6% of such purchases. This was based on the Instruction no 2 of 2008 related to benign assessment in the cases of assesses in the diamond business. The Ld. CIT(A) reduced the disallowance to 3% of the purchases based on the recommendation of the Task Force group for diamond industry set up by the Government of India, Ministry of Commerce and Industry which after considering the Benign Assessment Procedure (BAP) scheme recommended a net profit of 2% for trading activity, 3% for manufacturing activity and 2.5% across the board for diamond industry. The appeal filed by the assesse in ITA No. 4760/Mum./2017 was dismissed vide order dated 2.11,2017- In the case of Renisha Impex P, Ltd. in ITA 4464/M/16 and ITA 4453/M/16 in the order, dated 12.9.2017, as against 100% disallowance made by the assessing officer, the Hon'ble ITAT upheld disallowance of 4% of impugned purchases. This was a case of purchases from Praveen Jain entity. In the case of S....
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....ainst said purchase have been made through proper banking channels. The Ld. AO has neither pointed out any discrepancies in books of accounts, nor made out a case of sales outside books of accounts. In absence of any incorrectness in books of accounts, no addition could be made towards alleged non genuine purchases, only on the basis of information collected from third party source, when the assessee has justified purchases with necessary evidences. 9. Having considered relevant material on record, we find that the Ld.CIT(A) has categorically recorded facts with regard to modus operandi of entry providers, in light of their financial statements and came to the conclusion that all those companies are showing high turnover without there being any asset base, which clearly proves the fact that they are involved in providing accommodation entries without there being any actual business activity. The Ld.CIT(A) has also recorded categorical finding that the findings of the Ld. AO that Shri Rajendra Jain and other entities are engaged in the business of providing accommodation entries is not merely based on their statements recorded u/s 132(4) of the Act, but it is further supported by i....