9911796707
TMI Blog2019 (3) TMI 1129X X X X Extracts X X X X X X X X Extracts X X X X ..... rief are that assessee has filed his return of income on 19.8.2009, declaring income of Rs. 2,85,650/- which was duly processed u/s 143 (1). Later, on the basis of certain information received from CIT Central Circle II, New Delhi, enclosing letter dated 13.3.2013 of ACIT Central Circle -10, which contained the list of the persons to whom bogus purchases / accommodation entries were provided by Shri Rakesh Gupta, Shri Vishesh Gupta, Shri Navneet Jain, Shri Vaibhav Jain. Since assessee was also one of the name included in the list, the AO issued a notice u/s 148 on 7.3.2016/ 23.3.2016 for reopening the case u/s 147. In the 'reasons recorded' AO has noted that assessee has taken accommodation entry from the following three parties:- (i) M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been incorporated in the impugned appellate order. Ld. CIT(A) has dismissed the assessee's objection holding that there was a clear cut connection between the material available on record and the escapement of income and AO did had prima-facie 'reason to believe' based on such material. He observed that, here in this case AO has noted that Vishesh Gupta was providing accommodation entries which was found during the course of his search proceedings; and also during their assessment proceedings they have admitted that they were providing accommodation entries and in their course of admission, it was found that the list containing bills accommodation entries, assessee's name also appeared. On merits, the assessee challenged that AO has n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged by submitting copies of bills, stock register, payment made through cheques, however, here in this case, once assessee was confronted with certain incriminating material then onus was shifted back to the assessee again to prove that these materials are not correct. He held that the statement of these persons assumes great significant, because they themselves were found to be engaged in anti tax practices; and once statement of these persons were provided to the assessee, compliance of natural justice has been made. If in the statement the seller has disowned the bill then reliance on entries in the stock register will not discharge the onus upon the assessee. After detailed discussion, he has confirmed the said addition by and large hol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he impugned order as well as the material referred to at the time of hearing. Assessee is engaged in the business of trading in scrap metals and during the year under consideration, he has shown purchases of Rs. 90,12,049/-. Out of the said purchases, sums amounting to Rs. 12,56,068/- has been held to be bogus purchases on the ground that assessee has obtained purchase bills from three parties who were owned and controlled by Shri Vishesh Gupta and his family members, who in the course of their assessment proceedings have admitted that they were providing bogus purchase bills/ accommodation entry bills to the concerned parties. The cheques were received from the concerned parties which were deposited in the bank account of the their concern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses from any party is outside books of account. The quantitative details of stock as on 31.3.2009 was as under:- Quantitative details of stock as on 31.03.2009 Sl. No. ITEMS OP.STOCK PURCHASES SALE CL STOCK 1. Aluminium Scrap 4345.500 42578.650 39188.900 7735.250 2. Brass Scrap 837.550 20902.050 19850.700 2788.900 3. Copper Scrap 1216.500 4125.100 2790.400 2551.200 4. Copper Wire 166.000 NIL 166.000 NIL 5. Steel Scrap 290.000 4396.000 4250.000 436.000 Total 6855.550 72001.800 65346.000 13511.350 This has also been mentioned in the audit report and certified by the tax auditors. 10. Once the quantity of opening stock and purchases on the debit side; and sales and closing stock in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in lieu of the cheque has made purchases from the grey market for getting the same quantity of material in cash from some different vender, then at the most it could be a case of the suppressing of gross profit. In other words, assessee has debited higher amount for the purchase which in fact has purchased the same material and quantity at a lesser amount, thereby suppressing the gross profit. Under these circumstances any addition at all which could be made, is by enhancing the Gross Profit on such purchases. Nowhere there is a finding or whisper either by the AO or CIT (A) that the gross profit shown by the assessee during the year was less as compared to earlier or subsequent years or there is any material to show that gross profit has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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