AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2021 (12) TMI 860
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....n grounds of appeal, therefore, with the consent of the parties areclubbed together, heard and are decided by a consolidated order for appreciation of fact. The facts of appeal for A.Y 2009-10 in ITA No. 312/SRT/2017 was treated as lead case. The assessee has raised the following grounds of appeal:- "1. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in upholding the proceeding u/s 148 without appreciating the facts that proceeding was initiated without jurisdiction and on borrowed reasons. 2.On the facts and circumstances of the case and law, the Ld. CIT(A) erred in upholding the proceeding u/s 148 without appreciating the facts that sanction for reopening was not obtained from appropriate authority. 3. On th....
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....said group was running several benami concerned. The assessee is one of the beneficiary of purchases from M/s Karnavat Impex Pvt. Ltd. of Rs. 4,84,128/-. It was further informed that a search action u/s 132 was carried out by Investigation Wing (Mumbai) on Shri Rajendra Jain Group on 30.10.2013.During the search statement of hawala operation was recorded wherein they admit about providing bogus unsecured loan, bogus purchases and sale of accommodation entry. The Assessing Officer after serving the reasons recorded and statutory notice u/s 143(2) r.w.s. 142(1) of the Act provided for assessment. The assessee was confronted with the report of investigation wing of Mumbai. The assessee was asked to as to why the purchases shown from M/s Karnav....
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....ation authorities carried out investigation wherein it is confirmed that assessee receipt bogus accommodation bills. The bills were issued on commission to various parties. The burden of proof that purchasing made by assessee from those parties are genuine is on the assessee. The hawala operator explained their modus operandi used in the business in giving bogus bills. The Assessing Officer discussed the modus operandi of entry provided and disallowed 25% of purchases by following decision of Hon'ble jurisdictional High Court in the case of Vijay Proteins Ltd. vs. CIT (996 55 TTJ76 (Ahd) in assessment order passed u/s 143(1) r.w.s 147 of the Act on 15.08.2016. Aggrieved by the addition in the assessment order and against the re-opening ....
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....de his order dated 19.01.2019 and no further appeal is filed by the revenue against that order. The ld AR for the assessee submits that the assessee filed sufficient evidence to prove the purchases. The AO has not made any comment on the documentary evidence furnished by assessee. The AO solely relied upon the statement of third party and the report of Investigation Wing. The report of wing and the statement of alleged entry providers were not provided to the assessee. The AO has not disputed the sales of assessee. No sale is possible in absence of purchase. The books of accounts were not rejected. The AO made the disallowance of entire purchases. The assessing officer not provided cross examination of the alleged hawala dealers. The disall....
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....turn of income has offered that their income as commission agent (entry provider). Further, the appeal of those entries provider Rajendra Jain and Sanjay Chaudhary are pending before the Tribunal and the Hon'ble Bench may take judicial notice of all those facts while deciding the present appeal. The prayer of the ld AR that the disallowances may be restricted to 5%, is on a very lower side, the ld CIT(A) has taken a very reasonable view while restricting the disallowance to 25% of the disputed purchases. 5. We have considered the rival submissions of both the parties and have gone through the order of authorities below. We have also deliberated on all the case laws relied by the ld AR for the assessee. We find that Assessing Officer wh....