TaxTMI 
TaxTMI 
2023 (3) TMI 318
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....n facts. 2. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the proceedings initiated under Section 153A and order passed by the learned Assessing Officer (AO) under Section 153A/143(3) is without jurisdiction. 3. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in. law in rejecting the contention of the assessee that the order passed by the learned AO under Section 153A is bad and liable to be quashed as the same has been framed consequen to a search which itself was unlawful and invalid in the eye of law. 4. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the additions made under Section 153A are bad in law in the absence of any incriminating material belonging to the assessee being found during the course of the search. 5. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the AO has erred in making the addition w....
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....ppeals) erred in ignoring the facts mentioned in Assessment Order as well as in remand report that purchases of Rs.4,83,31,994/- remained unverified. 4. The Ld. CIT (Appeals) erred in not upholding the entire addition on account of unverified bogus purchases and applying estimation of profit out of bogus purchases. " I.T.A. No.7994/DEL/2019 (A.Y 2016-17) I.T.A. No. 8080/DEL/2019 (A.Y 2016-17) I.T.A. No.7994/DEL/2019 4. Brief facts of the case are that, the assessee filed original return declaring total income of Rs.13,58,490/- which was processed u/s 143(1) of the Act at a returned income. Consequent to the search conducted u/s 132 of the Act where certain papers/documents belongs to the assessee were found and seized. The assessment order came to be passed u/s 153A read with Section 143(3) of the Act by disallowing interest paid on whom loan of Rs. 2,00,000/- made addition u/s 68 read with Section 115BBE of the Act, on account of unexplained credit of Rs. 1,00,000/- and also made addition on account of bogus purchase of Rs. 67,81,83,292/-. 5. As against the assessment order dated 31/12/2018, the assessee has preferred an appeal before the Ld.CIT(A) and the ....
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....ount You are hereby asked to show cause why the amount of Rs. 1,00,000/- should not be added back to your income as unexplained credit for the year under consideration.", 6.1 Vide reply dated 24/12/2018', the AR of assessee replied that "the assessee has made additions of Rs 1 lac in the capital account by transferring from savings account.'The reply of the assessee was considered and found not to be acceptable. 6.2. Again the assessee was provided final opportunity to furnish the details vide final show cause and was asked vide point rip. 5 of the notice u/s 142(1) dated 26.12.18 as "From perusal of Balance sheet for the year under consideration, you have made addition of Rs 1,00,000/- in your proprietors capital account' You are hereby asked to show cause why the amount of Rs. 1,00,000/- should not be added back to your income as unexplained credit for the year under consideration. 6.3. The reply of the assessee was considered and found to be non acceptable as the asseesee has not submitted the requisite documents to prove the addition of Rs 1 lac has been made from saving account. A bare reading of section 68 of the Act suggests that there has to b....
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.... Again the assessee was provided final opportunity to furnish the details vide final show cause and was asked vide point no, 5 of the notice u/s 142(1) dated 26.12,18 as " Notice under 142(1) of the IT act,1961 dated 26.12.2018 was issued to you and you were asked to show cause that why the purchases amounting Rs. 107,04,04,257 /- made from the parties should not be considered bogus and add back to your income for the year under consideration, notices under section 133(6) of the IT act,1961 were issued to the purchase parties for the year under consideration. The status of notices whether returned back/no reply received is provided in tabular form as below : In this regard, no satisfactory reply was file by you till date. Now, in order to prove the genuineness of the transaction, you are asked to produce the following parties as mentioned below:- In case if you fail to produce these parties on 28/12/2018, it will be assumed that the transaction entered into with the parties are bogus and same will be added back to your income." a. The assessee appeared and submitted the reply on 28/12/2018, in his reply the assessee stated that which is as under:- ....
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....in thereby it is very difficult to locate the said parties. Therefore, the assessee is placing on record the updated address of the parties which is enclosed for your perusal. It is further submitted that many parties have already complied with the notice issued to them by directly sending confirmation to the office of your good self and for the certain parties the assessee has already obtained the confirmation from them and the same is benign placed on record for your kind perusal and for the remaining the assessee will get the confirmations either directly sent to your good self's office or will obtain the confirmation and the same will be submitted as early as possible and also before the completion of the assessment proceedings. Further, it is a settled law and based upon various upon various judgments of Hon'ble courts an? HAT of which the latest is of ACIT vs. Karam Chanel Rubber Industries (ITAT' De!hi )ITA No.6599/Del/2014 in which it is held that either non service of none u/s 133(6) of the Income Tax Act, 1961 to a, vendor/Third party or non- submission of reply or noncompliance of notice served u/s 133(6} of the Income Tax. Act, 19c by the Vendor/Th....
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....nt orders for each of the six years. In other words there will be only one assessment order in respect of each of the six AYs "in which both the disclosed and the undisclosed income would be brought to tax". iv. Although Section 153 A does not say that additions should be strictly made on the basis of evidence found in the course of the search, or other post-search material or information available with the AO which can be related to the evidence found, it does not mean that the assessment "can be arbitrary or made without any relevance or nexus with the seized material. Obviously an assessment has to be made under this Section only on the basis of seized material." v. In absence of any incriminating material, the completed assessment can be reiterated and the abated assessment or reassessment can be made. The word 'assess' in Section 153 A is relatable to abated proceedings (i.e. those pending on the date of search) and the word 'reassess' to completed assessment proceedings. vi. Insofar as pending assessments are concerned, the jurisdiction to make the original assessment and the assessment under Section 153A merges into one. Only one as....
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.... 97382803 11. MD Overseas ltd. Reply received 33618700 12. PP Jewellers (Delhi) No reply received. 114495700 13. Pannalal Mahesh chandra No reply received. 88933800 Jewellers 14. Pradeep Jewellers No reply received. 32432211 15. Pooja Traders No reply received. 20849994 16. PP Jewellers (Exports) DTA No reply received. 10420000 Unit 2008-09 17. RK Bullions Returned Back 20650624 18. RP Jewellers Returned Back 13564300 19. RSBL Spot Trading Pvt. Ltd. No reply received. 32174200 20, SB Ornaments Pvt. Ltd, Reply received. 112299220 21. Sanmati Jewellers Reply received. 18026390 22. Shivam Traders Reply received. 95412199 23 Shree Ram Jewels Pvt. Ltd. No reply received. 131948388 Shreeji Trading Co. Returned Back 39542800 25. Ultimate Creations Reply received. 26. Yellow & White Metals Returned Back 29542299 14907327 of Document 2 Serial Name of purchase party Status of notice u/s 133(6) No. Arihant Jewellers No reply received. Amount Transaction 5004237 of 1. 2....