TaxTMI 
TaxTMI 
2022 (11) TMI 520
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.... "1. On the facts and in the circumstances of the case and in law the Ld. CIT (A) erred in not considering that the assumption of jurisdiction by the Ld. Assessing Officer is bad in law as the conditions laid down under the Act for initiating reassessment proceeding u/s 147 of the Act have not been fulfilled. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT (A) erred in confirming the addition of entire purchases amounting to Rs. 5,30,530/- by treating the genuine purchases as accommodation entries. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT (A) erred in confirming the addition made by Ld. Assessing Officer, without providing any opportunity of cross ex....
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....y action, it was revealed that these group concerns were merely providing accommodation entries through various benami concerns operated and managed by them. It was also found that these concerns are indulged into fraudulent transactions of issuing accommodation/hawala entries which purportedly shows transaction of purchase and sale of material and bogus unsecured loans and advances. 6. During the year of consideration there was information from the DGIT (Investigation), Mumbai that assessee had taken accommodation entries from a transactions with Bhanwarlal Jain Group (who are entry/Accommodation bill providers) of Rs.5,30,530/- the details are as under: Sr. Name of the hawala entities Amount involved (in Rs.) 1 Naman Exp....
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....The assessee's was asked to substantiate the transactions of purchase with impugned entities and show caused as to why said transactions be not treated as bogus transaction. 8. During the course of search, all the registered offices, business premises and residential premises of various dummy directors, partners and proprietors including that of Bhanwarlal Jain, Rajesh Bhanwarlal Jain and Manish Bhanwarlal Jain were covered. At none of these premises, any stock of diamond was found. Any concern which is in genuine business of diamond trade, at a given point of time would at least have some stock of diamond available. However, the fact that none of the 70 concerns had any stock of diamond as on 03/10/2013 i.e. the day when search comm....
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....al by the assessee against the order of Ld. CIT (A)-18, Mumbai for A.Y. 2010-11. 13. The goods purchased from the above party have been sold and quantitative tally thereof given in the tax audit report u/s 44AB of the Act and the same is perfectly tallied with books of accounts. It is fundamental accounting principal that once the sale is accepted than the purchase cannot be doubted. Reliance is placed in case of G.G. Diamond International v Dy. CIT (2006) 104 TTJ 809 (Mum.] (Trib.) and Balaji Textile Industries (P) Ltd vs. ITO [1994] 49 ITD 177 (Mum.) The quantity details and movement of goods is perfect tallied hence there is no defect and mismatch in the books of accounts of the assessee. Reliance is placed on ITO, Ward 2(5), Rajkot v....
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....concerns. During the course of appellate proceedings, the appellant's Ld. AR could not submit any proof of transportation of goods/diamonds and explained that the diamonds were delivered by hand as per trade practice. In absence of any third party evidences, it cannot be held that the appellant has proved that the goods/materials under considerations were purchased from the above referred parties and hence the appellant's contentions in this respect are rejected. 15. Now the question arises that in the event of appellant not proving that it had purchased goods/materials from above referred dealer/party, whether entire such bogus purchases can be disallowed. The Assessing Officer has observed that the information was received that....
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.... a lower price so as to increase its overall profits. In these circumstances, the entire amount of alleged bogus purchases cannot be disallowed / added, but only profit element embedded therein needs to taxed. 17. As the books of account of the assessee was not rejected by the AO and had accepted the sales of the assessee. The assessee maintained proper books of accounts including purchase register, sales register, stock register, etc. and not specific defect or irregularity observed by the AO. But on the other hand, assessee dealt with an entity of entry provider Mr. Bhanwarlal Jain, this is also not in dispute. 18. In similar facts of the case, the Hon'ble ITAT, Mumbai in the case of Amy Diam Vega Jewellery P Ltd in ITA Nos. 579....