TaxTMI 
TaxTMI 
2021 (10) TMI 949
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.... initiation of proceedings u/s.147 as bad in law and thereby annul the assessment order passed u/s.143(3) r.w.s.147. 2. The learned CIT(A) erred in disallowing purchases to the extent of Rs. 51,85,086/-, being 25% of the purchases made from following parties, disregarding the explanations furnished and the evidences brought on record by the appellant : M/s. National Trading Company Rs. 1,25,08,910/- M/s. Rumeet Enterprises Rs. 30,16,000/- M/s. Millenium Enterprises Rs. 36,162/- M/s. Shah Enterprises Rs. 51,79,270/- Total Purchases Rs. 2,07,40,342/- Therefore, it prayed to delete the said addition. 3. The learned CIT(A) erred in not accepting appellant's plea of directing the learned AO to levy interest u/s.234C on tax due as per original ROI. Therefore, it is prayed to accept the said plea of appellant and restrict the levy of interest u/s.234C at Rs. 44,76,162/-. 4. The appellant craves leave to add/amend/alter any grounds of appeal and/ or prayers before or at the time of hearing." 3. The Revenue in ITA No.1135/PUN/2017 has raised following grounds of appeal: "1) Whether the ld CIT(A) was justified in d....
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.... Act') was conducted in the case of the assessee on 20.04.2010 and in response of u/s.153A of the Act, the assessee disclosed income of Rs. 93,28,87,430/-. During the course of search assessment proceedings, the assessee approached the Hon'ble Settlement Commission offering additional income of Rs. 2,01,31,625/- resulting in determination of total income after giving effect to the order u/s.245D(4) at Rs. 95,30,19,055/-. Subsequently, Maharashtra Sales Tax Department conducted investigation on various parties who had not remitted VAT to the Department. Office of the DGIT (Inv.) informed the Assessing Officer that the assessee was one of the beneficiary availing bogus purchase bills of Rs. 2,07,40,342/- from four different hawala dealers namely M/s. National Trading Company (Rs. 1,25,08,910/-), M/s. Rumeet Enterprises ( Rs. 30,16,000/-), M/s. Millenium Enterprises ( Rs. 36,162/-) and M/s. Shah Enterprieses (Rs. 56,79,270/-). In view of this information, the Assessing Officer recorded the reasons to believe that income to the extent of Rs. 2,07,40,342/- had escaped assessment and issued notice u/s.148 of the Act. 7. During the course of assessment proceedings, the Assessing Office....
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.... AO carried out enquiries from which it was noted that out of the cheques of Rs. 15,00,000/- and Rs. 15,16,000/- credited on 28.06.2010 and 29.06.2010 respectively in the accounts of M/s. Rumeet Enterprises Rs. 5,00,000/- and Rs. 8,00,000/- were withdrawn immediately in cash and Rs. 10,00,000/- was transferred to another party M/s. Shah Enterprises which is also one of the Hawala dealer as per the information of VAT department. The AO further gathered that Rs. 10,00,000/- transferred to M/s. Shah Enterprises was immediately withdrawn in cash. Remaining amount of Rs. 7,00,000/ - was transferred immediately to other similar concern M/s. Neil Enterprises. MS channels are purchased either from original manufacturer or its authorised dealer. Amounts transferred by M/s. Rumeet Enterprises to other paper entities established that these parties have only issued accommodation bill and thereafter absconded. No genuine dealers having such prestigious client like appellant could have disappeared like this. Therefore, purchases from these parties are not established as genuine. The appellant failed to rebut the findings of the AO demonstrating that these hawala dealers were not the genuine supp....
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.... this circumstances , it could be concluded that material was purchased and used by the assessee at the power project site but same was not supplied by the impugned hawala dealers who had merely issued accommodation bills. Therefore, the Ld. CIT(Appeals) has given finding that materials were purchased and it was also consumed by the assessee at power project sites but for the fact that those materials purchased were not supplied by the impugned hawala dealers who had merely issued accommodation bills and therefore, to meet ends of justice, 25% purchases made from hawala suppliers were held to be bogus and the assessee was given partial relief. 11. We have heard both sides and gone through the relevant material available on record. It is observed that the assessee allegedly purchased raw materials through the Hawala purchase bills and thereafter consumed the same in the power project sites. In such a situation, it cannot be said that the entire amount of hawala purchase bills requires addition. The Hon'ble jurisdictional High Court in Pr.CIT Vs. Paramshakti Distributors Pvt. Ltd., vide its judgment dated 15.07.2019 in ITA No.413/2017, has sustained the addition @ 10% of the amoun....