TaxTMI 
TaxTMI 
2026 (9) TMI 1789
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....sues, thus for the sake of brevity, are heard together and decided under this consolidated order. 3. First, we shall be taking the appeal of assessee for AY 2008-09 in ITA No.352/Mum/2026 wherein the assessee has raised following grounds of appeal: "1. On the facts and circumstances of the case and law, the Ld CIT(A) erred in confirming the action of Ld AO in charging interest under section 234B of the Income Tax Act, 1961. 2. On the facts and circumstances of the case and law, the Ld CIT(A) erred in confirming the action of Ld AO in initiating penalty proceedings under section 271(1)(c) of the Income Tax Act, 1961. 3. Appellant craves leave to add further grounds OR to amend OR 3 alter the existing grounds of appeal on OR before the date of hearing. 4. On the facts and circumstances of the case and law, the Ld. CT(A) erred in confirming the action of Ld AO of initiating reassessment proceeding under section 147 of Income Tax Act, 1961 which is bad in law and require to be quashed. 5. On the facts and circumstances of the case and law, the Ld CIT(A) failed to appreciate that entire reassessment proceedings are invalid and bad in law a....
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....s of bogus purchases of diamonds without actual delivery and this transaction were undertaken to generate paper tail only ?" 3. "Whether, on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has not appreciated the fact that during the Search operations conducted at the premises of Bhanwarlal Jain and its groups, no stock of diamonds or related materials pertaining to business was found and during the re-assessment proceedings and also the assessee has also failed to prove genuineness and creditworthiness of transactions as well as party vindication, by not producing any documents/evidences/delivery challans, stock registers etc. before Assessing officer." 4. "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has ignored that even during the Re-assessment Proceedings, the assessee could neither produce the quantity tally of day to day purchases, Sales, Stocks, Delivery Challans and corresponding values nor could produce the parties for verification, from whom the alleged purchases were purportedly made, in spite of opportunity provided by the Assessing Officer." 5. "Whether on the facts and in the....
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....ter, classify, reclassify, delete or modify any of the above grounds of appeal and requests to consider each of the above grounds without prejudice to one another." 5. Brief facts of the case are, that the assessee has filed its return of income for AY 2008-09 on 19.09.2008, declaring total income of Rs. 34,62,580/-. Subsequently, the case was re-opened u/s 147/148. Accordingly, notice u/s 142(1) along with questionnaires were issued. During the assessment proceedings, it was observed by the Ld. AO that the assessee is engaged in the business of trading and manufacturing in diamonds. A search and survey action was conducted in the case of Shri Bhanwarlal Jain Group on 03.10.2013. On the basis of statements recorded during the said search u/s 132 and 131 of the Act, it is admitted that the entities managed and controlled by Shri Bhanwarlal Jain Group are involved in the business of accommodation entries of purchase and sale of diamonds. It is also revealed that the assessee had taken accommodation entries of purchases from M/s. Nice Diamonds worth Rs. 1,66,35,622/-. The assessee was show-caused to substantiate the genuineness of the transactions which was responded with the asser....
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...., the estimation of 3% was considered to be reasonable, justified and thus was not interfered by the Hon'ble Tribunal. It is submitted that the appeal of assessee for AY 2008-09 under identical facts and circumstances may be decided accordingly. 9. Per contra, Ld. DR vehemently supported the orders of Revenue Authorities. 10. We have considered the rival submissions, perused the material available on record and the decision relied upon by the assessee. In the facts and circumstances of the present case which is identical to the cases referred to by the assessee, we find that the Ld. Assessing Officers have taken/adopted different stands in the case of assessee for different AYs. There is no dispute that the assessee's books of accounts are not rejected, also the stock / quantitative details furnished by the assessee are not inferred adversely. While the returned income of the assessee emerging from the books of accounts, having arrived at considering the sales connected with the alleged purchases are accepted by the Ld. AO, even if the alleged transactions are considered to be bogus which apparently seems so, only the profit element embedded in such purchases would be liable ....
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....ppeal of assessee challenging the legal aspects or on merits is also disposed of in terms of our aforesaid findings hereinabove and therefore stands addressed. 15. In result, the appeal of Assessee as well as Revenue for AY 2008-09 stands dismissed, in terms of our aforesaid observations. ITA No. 8072/Mum/2025 for AY 2012-13 16. The assessee has challenged the disallowance made by the Ld. Assessing Officer under section 69C of the Act in respect of the alleged bogus purchases aggregating to Rs.12,02,61,206/-, stated to have been made from the same parties and arising under identical transactions facts and circumstances, as were there in the earlier years. However, the entire amount of such purchases, as disallowed by the Ld. Assessing Officer, has been sustained in entirety by the Ld. CIT(A). 17. We find that the issue involved in the present appeal is identical to the issue considered in the assessee's own cases for A.Ys. 2009-10, 2010-11 and 2011-12, wherein the facts and circumstances, as well as the orders passed by the Ld. Assessing Officer and the Ld. CIT(A), are stated to be similarly worded. Further, the issue for A.Y. 2008-09, arising in ITA Nos. 352/Mum/2026 a....