9911796707
TMI Blog2010 (9) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 7th October, 2009 of Income Tax Appellate Tribunal (in short "Tribunal") in ITA No. 20/Agr./2008 for the Assessment Years 1999-2000 and 2000-2001 2. The relevant facts are that respondents-assesses showed long term losses on account of sale of jewellery in their original returns of income filed for Assessment Years under consideration. The jewellery was shown to be sold to M/s. SMS Surya Ornaments and M/s. Shree Ji Jewellers. The said jewellery were earlier declared by the assessees under Voluntary Declaration of Income Scheme, 1997 (in short "VDIS"). A search under Section 132 of Act, 1961 was conducted at the residential premises of the assesses on 10th December, 2002. During the post search enquires, M/s. SMS Surya Ornaments and M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner of Customs and Central Excise in the case of one Devi Das Garg that M/s. SMS Surya Ornaments and M/s. Shree Ji Jewellers were dummy entities created for the purpose of making accommodation entries. 7. Having heard the learned counsel for the appellant and having perused the file, we are of the view that the respondents-assessees have led sufficient evidence before the authorities below to establish the genuineness and existence of the two parties and transactions of sale of the jewellery. 8. In fact, the Tribunal in the impugned order has held as under:- "9. Considering the above submissions, we find that the AO relying upon the findings of ld. Commissioner of Customs and Central Excise, Delhi relating to M/s. Shre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration made under VDIS, 1997. There is also substance in the submission of the assessee before the lower authorities that it was beyond their power and control to compel the proprietors of above named concerns to appear before the Assessing Officer in person in compliance of summons u/s 131 issued to them."(emphasis supplied) 9. Further, we are of the view that the AO's reliance on the finding of Commissioner of Customs and Central Excise in the case of the third party without affording an opportunity to the respondents-assessees to rebut or contradict the findings, is a clear violation of the principles of natural justice. The Tribunal in this context has observed as under :- 10............The ld. DR has also not denied this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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