TaxTMI 
TaxTMI 
2025 (2) TMI 1754
X X X X Extracts X X X X
X X X X Extracts X X X X
....d to dispose of these appeals by way of this consolidated order for the sake of convenience. 4. At the outset, we find the assessee has filed two appeals for the A.Y. 2019-20 and the same are numbered as ITA No.1732/PUN/2024 and ITA No.1733/PUN/2024 respectively. Form No.36, grounds of appeal and the figures of addition are also same. The assessment order is also one and the same. Therefore, we dismiss one of the appeal, namely ITA No.1732/PUN/2024 as 'Infructuous'. 5. Now we proceed to take up the appeal for A.Y. 2018-19. Facts of the case in brief are that the assessee is a HUF engaged in the business of Trading of Steel. Income of Rs. 35,38,720/- was declared in the return filed for the A.Y. 2018-19 on 01.10.2018. A search and seizure action u/s.132 of the Act was conducted in the BVG Group of cases on 06.11.2019 in which the assessee was also covered and certain incriminating materials were impounded. Statutory notices were issued to the assessee to which the assessee made compliance. Based on the seized material and information furnished by the assessee, the Assessing Officer noticed that the assessee made sale of Rs. 12,85,36,639/- to M/s. BVG India Ltd. Ld. AO vide not....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mited, his mobile phone was seized and print out of WhatsApp conversations of his mobile (IMEI 1:869430045490215, ΙΜΕΙ 2: 869430045490207) were taken and seized. These WhatsApp conversations are with various persons such as the Chairman of BVG India and other persons including Shri Rakesh Mehta. Chats with these persons were in coded language which was confronted with Shri Kalaskar and he explained that the chats are related to cash payments made at various locations on the instructions of the Chairman of M/s BVG India Limited. When asked about the methodology of these cash transactions, Shri Kalaskar stated that the assessee company is using services of brokers. He stated that money through banking channels is transferred to the bank account of the party as told by these brokers and thereafter the cash is arranged by these brokers at the desired location. As admitted by Shri Madhu Kalaskar, Shri Rakesh Mehta was one of these brokers who used to issue bogus purchase bills to BVG India in lieu of Commission. The amount received as sale consideration through banking channel used to be returned in cash to BVG India, by Shri Mehta. 7. It may be further men....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Madhuchandra Kalaskar but the AO did not allow the same. The appellant has not submitted any document/letter suggesting that any request of cross-examination was made before the assessing officer. It is a settled legal position that after foregoing its right of cross-examination at the stage of assessment proceedings, the appellant now cannot take this plea at this stage that it was not provided the opportunity of cross-examination. This position has been upheld by Hon'ble High Court of Calcutta in the case of Hindustan Tobacco Company vs CIT 211 Taxman 11(Cal.). The relevant portion of the said decision is reproduced as under:- 34. If the assessee felt that cross-examining of any person was necessary for establishing its case it was incumbent upon the assessee to make such prayer before the Assessing officer during the assessment proceeding. If a party fails to avail of the opportunity to cross-examine a person at the appropriate stage in the proceeding, the said party would be precluded from raising such issue at a later stage of the proceeding. Therefore, the belated claim of the assessee at the appellate stage that it was denied the opportunity of cross-examining ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... assessee were bogus, has been upheld by me. It may be stated that although BVG India Ltd. has got relief from Hon'ble ITAT, however the relief was granted on technical ground by observing that the approval u/s. 153D of the Act was not proper. The Hon'ble Tribunal has not given any finding that the purchases claimed to have been made by M/s. BVG India Ltd. from the appellant are genuine. In view of these facts, my factual findings while deciding the appeal of M/s. BVG India Ltd. has not been reversed by the Hon'ble ITAT. In view of these facts, it is held that the sales shown to have been made to M/s. BVG India Ltd. during the year under consideration are nothing but accommodation entries. Accordingly, the action of the A.O. that the appellant is engaged in the activities of providing accommodation entries is upheld. 15. The A.O. has held that over and above the profit shown in the P&L account, the appellant must have earned some commission on account of bogus bills provided to M/s. BVG India Ltd. The A.O. has estimated the said commission @ 1% of the amount of accommodation entries, which appears to be fair. Accordingly, the addition of Rs. 12,85,366/- made by....