TaxTMI 
TaxTMI 
2022 (5) TMI 837
X X X X Extracts X X X X
X X X X Extracts X X X X
.... after bringing necessary evidence on record in regard to the bogus purchase by way of accommodation entries as admitted by the parties controlled by Shri Bhanwarlal Jain group during the course of search action on 03.12.2013. 2. On the facts and circumstances of the facts and in law, whether the Ld. CIT(A) was justified in deleting the addition made U/s 69C on account of bogus purchases claimed by the assessee on the ground that since source of payments for purchase are duly explained in the books of accounts, the provision of section 69C was not applicable without appreciating the fact that the assessee failed to produce the day to day purchase and consumption register of goods and failed to establish any physical transfer of goods against the impugned payments alleged to have been made through banks and therefore, the entire transactions are merely book entries in the nature of sham transactions which is the characteristic of accommodation entry. 3. On the facts and circumstances of the facts and in law, whether the Ld. CIT(A) was justified in deleting the addition made U/s 69C on account of bogus purchases claimed by the assessee on the ground that even if the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he assessee also asked for cross examination of Bhanwarlal Jain. The assessee also relied on certain case laws which is recorded by the Assessing Officer in the assessment order. The assessee also claimed that its income is exempt under Section 10AA of the Act and there is no motive of lowering down the profit. Addition if any should be considered while making the deduction under Section 10AA of the Act and relied on the decision of Hon'ble Himachal Pradesh High Court in the case of CIT Vs. Allied Industries (2010) 229 CTR 462. 3. The reply of assessee was not accepted by the Assessing officer. The Assessing Officer on the basis of statement of Bhanwarlal Jain and the report of Investigation Wing held that the evidence collected during the search operation is available with the Revenue about the accommodation entries provided by Bhanwarlal Jain group. Hence, the assessee's reply has no substance. On the contention of assessee that they are eligible for deduction under Section 10AA of the Act, the Assessing Officer held that the assessee has claimed deduction on higher side. The assessing officer held that the assessee has not established the physical delivery of goods. Day t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he purchases through bogus purchase bill. With the aforesaid view the ld. CIT(A) deleted the entire addition. Aggrieved by the order of the ld. CIT(A), the Revenue has filed the present appeal before this Tribunal. 6. We have heard the submissions of the learned Commissioner of Income tax -departmental representative (ld. CIT-DR) for the Revenue and the ld. Authorised Representative (AR) for the assessee. The ld. CIT-DR for the Revenue has supported the order of A.O. The ld. CIT-DR submits that the Investigation Wing of the Revenue made full-fledged investigation in the case of Bhanwarlal Jain and his group. Bhanwarlal Jain group was managing various companies, firms and proprietorship concerned in the name of his family members or relatives and there indulging in providing accommodation entries without actual delivery of goods. The assessee was shown purchases of 3.09 crores from Bhanwarlal Jain group and his various concerns. The assessee's transactions are not genuine and claimed bogus claim under Section 10AA of the Act on the basis of such in genuine purchases. No stock in trade was found at the time of search at Bhanwarlal Jain and his group concern. Bhanwarlal Jain disclo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d the possibility of revenue leakage and not the substantial part or entire transaction. This view has been taken by Hon'ble jurisdictional High Court in the case of Bholanath Poly Fab (2013) 355 ITR 290 / 40 taxmann.com 294 (Guj). It is known fact that in case of Bhanwarlal Jain and its group concern, their income was assessed as entry provider, which has been affirmed by the Tribunal. Before Ld. CIT(A) the assessee made similar submissions as made before assessing officer as well as before this Tribunal. The Ld. CIT(A) after considering the submissions of the assessee held that the Hon'ble Jurisdictional High Court in the case of Sajani Jewels (supra) held that there was no escapement of income for the concern eligible for Section 10AA deduction. The Ld. CIT(A) also held that Hon'ble High Court held when the source of payment for purchases was duly explained from the books of account, the provisions of Section 69C is not applicable. The Ld. CIT(A) took his view that the facts of this case is identical to the case of Sajani Jewels (supra) and deleted the entire disallowances. It was also held that even if, 5% of purchases are estimated for addition, the same will be qu....