TaxTMI 
TaxTMI 
2023 (6) TMI 565
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.... erred in confirming the order passed u/s. 143(3)/147 by the Ld. 2. That the Ld. CIT(A) has erred on facts and in law in upholding the reopening of the assessment on the basis of notice u/s.148 of the Income Tax Act 1961 which itself is not valid. 3. That the Ld. CIT(A) has erred on facts and in law in upholding the assumption of Ld. AO that the purchase made by the assessee amounting to Rs.3,42,09,724/- is bogus. 4. That the Ld. CIT(A) has erred on facts and in law in confirming the addition of Rs.85,52,431/- considering that assessee has earned profit at 25% on the assumed bogus purchase of Rs.3,42,09,724/- 5. That the impugned assessment order is arbitrary, illegal, bad in law and the violation of rudi....
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....tter date 30/11/2015. On perusal of beneficiaries list, it has perused that assessee has taken the accommodation entry of total value of transaction of Rs. 3,42,09,724/- from M/s five entities as per the following details:- S No. Name of Bill Provider A.Y. Nature of Transaction Beneficiary name Total value of transaction 1. KRIYA (PAN: AADCK1926B) 2010-11 Sale Parmeshwar Exports. 96,18,783 2. AVI (PAN: ABIPJ5587A) 20 10- 11 Sale Parmeshwar Exports 41,32,479 3. SUN (PAN: ABAFS0852K) 20 l0-11 Sale Parmeshwar Exports 88,80,360 4. KALASH (PAN: AFRPJ9962J) 20 l0-11 Sale Parmeshwar Exports 69,80,161 5. KARNAWAT (PAN: AADCK19....
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....ra 4.3 to 4.13 of his order, the Ld. AO relying on the decision of Hon'ble Gujarat High Court in M/s. Vijay Protein Limited vs. CIT 58 taxmann.com 44 (SLP filed by the Department dismissed by the Hon'ble Supreme Court) and in Sanjay Oil Cake Industries vs. CIT (2009) 316 ITR 274 (Guj.) disallowed Rs. 85,52,431/- being 25% of alleged bogus purchase amount of Rs. 3,42,09,724/- on account of inflation of purchase price which he added to the income of the assessee and completed the assessment on total income of Rs. 92,09,440/- vide order dated 29.12.2017 under section 143(3)/147 of the Act. 7. The assessee challenged the initiation of reassessment proceedings under section 147 as also the addition of Rs. 85,52,435/- before the Ld. CIT(A). ....
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....rded his findings on the issue of impugned addition in para 5.4 and 5.5 of his order which is reproduced hereunder: "5.4 in the case of the appellant, genuineness of the purchase party is doubtful but genuineness of purchase on a whole cannot be doubted. The appellant has brought evidences on record that sales was effected by him during the year and he has received the payments from the export parties in his bank account. It shows that appellant was actually in possession of goods and there cannot be any sales without purchases. The appellant did purchase goods from some other supplier may be without bills and he has been benefited by providing margin of grey market. In such a situation, the judicial authorities have taken a view t....
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....of the case as in that particulars case the goods were pledged with the bank and the person from whom the purchases were made and who was operating the bank account was the employee of the group concern of the assessee. However, in the present case there is no such finding similar to that judgment. Further, assessee has already recorded the sales of the goods allegedly purchased from these bogus parties. Further, the Id CIT(A) has categorically stated at page No. 39 of his order under the heading "actual transaction" that goods have actually been purchased from grey market by cash payment from the cash generated outside the books of account and on quantitative details shown by the assessee, it has to be reasonably presumed that assessee pur....
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....peal ex-parte, on merits after hearing the Ld. Sr. DR who supported the orders of the Ld. AO/CIT(A). 13. We have gone through the material available in the records and considered the submissions of the Ld. Sr. DR. It is observed that during reassessment proceedings, the assessee had filed objections for initiation of proceedings by issue of notice under section 148 of the Act and the Ld. AO met the objections by passing a speaking order on 05.11.2017 in accordance with the decision of Hon'ble Supreme Court in GKN Drive Sharft (India) Ltd. vs. ITO 259 ITR 19 (SC). The contention of the assessee that the Ld. AO issued notice purely on borrowed satisfaction of DCIT, Central Circle-4, Surat without application of independent mind has also be....