2022 (3) TMI 475

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....e Income Tax Act, 1961 (hereinafter referred to as 'the Act') dated 17.03.2015. The Revenue has raised the following grounds of appeal:- "(i)On the facts and circumstances of the case and in Law, the Ld. CIT(A) has erred in restricting the addition made by the AO to the extent of 5% of entire purchase i.e. Rs. 3,46,08,837/- on account of bogus purchase. (ii) On the facts and circumstances of the case and in Law, the Ld. CIT(A) has failed to appreciate the fact that the entire purchase from alleged concerns was bogus and it was only to suppress the profit of the beneficiaries which has been duly substantiated by the statement on oath given by the entry provider. (iii) On the facts and circumstances of the case and in Law, the Ld. CIT(A....

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....ficer was asked to furnish the details of purchases and show cause as to why the purchase of Rs. 3.46 Crores should not be treated as bogus purchases. 3. The assessee filed reply vide his reply dated 15.03.2015. In the reply, the assessee stated that purchase shown from Mohit International and Kunal Gems are genuine and supported by bills and payment were made through banking Channel. The reply of assessee was not accepted by Assessing Officer. The Assessing Officer held that mere furnishing payment through account payee cheques is not sacrosanct nor can it make a non-genuine transaction as genuine. There is sufficient evidence in the form of statement recorded under section 132(4) wherein proprietor of Mohit International categorically ad....

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....mbai on 01.10.2003. No physical stock of goods was found at his premises. The statement of Shri Praveen Kumar Jain Group and his associate were recorded under section 132(4) in the statement of Shri Praveen Kumar Jain Group and associate namely N. Parmar which is proprietor of M/s Mohit International disclosed that they are operated hawala trader for providing accommodation entries of sale and purchase of diamonds without actual delivery of goods. The Investigation Wing gathered sufficient material about modus oprendi hawala trader namely Shri Praveen Kumar Jain Groups and associates, assessee is one of the beneficiary of bogus purchases of Rs. 3.49 Crores. The assessee was given sufficient opportunity to prove the genuineness of transactio....

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....ies from whom, the assessee has shown purchases are managed by Pravin Kumar Jain. The Assessing officer made addition of 100% of purchases shown from Pravin Kumar Jain Companies/entities. We find the assessee has filed bill of purchases and bank statement in order to substantiate the genuineness of purchases. The evidence furnished by assessee bills of purchases and bank statement showing the transaction through banking channel. The Assessing Officer has disregarded such documentary evidence furnished by assessee. The sales of the assessee is not disputed by assessing officer. The Assessing officer not rejected the books of account. No other observation on books of assessee was made. It is settled law that no sale is possible in absence of ....