TaxTMI 
TaxTMI 
2025 (11) TMI 652
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....order of the Ld. Income-tax Officer, Ward- 9(1)(1), Mumbai (for brevity, the "Ld. AO"), order passed u/s 143(3) of the Act, date of order 23/03/2016. 2. The brief facts of the case are that the assessee was engaged in the business of manufacturing, buying, and selling jewellery under the name and style of M/s. Amar Ghanasingh. During the course of assessment, the Ld. AO observed that the assessee had entered into transactions with five parties aggregating to Rs. 9,40,52,460/-. The Ld. AO held that these five parties were linked to the Banwarilal Jain Group, identified as accommodation entry providers, and therefore treated the entire transactions as non-genuine purchases in the books of the assessee. In support of his claim, the assessee....
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....s of purchase and corresponding sales. c) Copy of bank statement. d) Confirmation letter of the parties. e) Copy of sales-tax registration of the parties. f) Copy of final accounts of the parties; and g) Copy of ITR of the parties But the Ld.AO rejected the books of account u/s 145(3) and considered the GP @8% on the bogus purchases of Rs. 9,40,52,460/- which comes to Rs. 75,24,197/- which was added back with the total income of the assessee. 5. The Ld. AR further argued and invited our attention in impugned appellate order. The relevant part of appellate order from page 13 to 15 is reproduced as below:- "........................... In its assessment order AO reproduced the copy of....
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.... 7 AASTHA IMPEX 36,70,400/- 8 NAMAN EXPORTS 52,12,608/- TOTAL 6,62,48,443/- The party is in Sr No.1,3,5 are common, the ITAT has held as under:- 7 We have gone through the order of AD, order of the Ld.CIT (A) and submissions of the assessee along with grounds of appeal raised by both the sides. It is observed that books of the accounts of the assessee were not disturbed by the AO applying sec. 145 of the act. That means the figure of sales and closing stock were duly accepted by the revenue. The only challenge is the authenticity of amount of purchases debited to the profit and loss account. We haven't found any remarks of the AD on quantity and value of closing stock....
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....ugh the relevant material placed on record including the judicial precedents relied upon. The undisputed facts remain that the assessee is engaged in the business of manufacturing, buying, and selling of jewellery under the name and style of M/s. Amar Ghanasingh. The Ld. AO alleged that the assessee had made purchases from certain entities belonging to the Bhanwarlal Jain Group, identified as accommodation entry providers, and treated the entire purchases of Rs. 9,40,52,460/- as non-genuine. Consequently, the Ld. AO estimated additional gross profit at the rate of 8% and made an addition of Rs. 75,24,197/-. The Ld. CIT(A), after appreciating the detailed evidences filed by the assessee, including quantitative details, purchase and sales reg....