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TMI Blog2019 (11) TMI 974X X X X Extracts X X X X X X X X Extracts X X X X ..... ose diamonds, the ledger accounts of expenses incurred towards his/her lodging, boarding and travel from Chennai to the place of delivery and bank. No such details were ever furnished either before the AO or before the CIT(A) or even before the Tribunal. No infirmity in the order passed by the CIT(A) in treating the impugned transaction of purchase of diamonds from M/s. Nazar Impex Pvt. Ltd as only an accommodation entry resorted to by the assessee to reduce its taxable income. Accordingly, the ground raised by the assessee stands dismissed. - I.T.A.No.2914/Chny/2018 (Assessment Year:2012-13) - - - Dated:- 19-7-2019 - Shri Duvvuru RL Reddy, Judicial Member And Shri S. Jayaraman, Accountant Member Appellant by: Non ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Impex Pvt. Ltd., M/s. Mayank Impex and M/s. Nayan Gems from Shri Sanjay Choudhary who was a director of M/s. Nazar Impex Pvt. Ltd. and M/s. Mayank Impex, it was found that M/s. Nazar Impex Pvt. Ltd. was dealing diamonds only on papers which meant that there was no actual physical delivery of diamonds. Hence, the bogus purchases to the tune of ₹ 19,49,125/- was added back to the business income of the assessee. On appeal, since the assessee could not produce any documentary evidences regarding transportation of such diamonds from the place of delivery to the business premises of the assessee, the ld. CIT(A) confirmed the addition. 3. On being aggrieved, the assessee is in appeal before the Tribunal. Despite service of n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, the ld. CIT(A) has observed that it is an admitted fact that in such type of accommodation transactions, the transacting parties evolve all possible ways and means to give it a colour of genuineness and bonafide character. Therefore, the ld. CIT(A) was of the view that the contention of the assessee that payments were made through banking channel to the supplier of diamonds has no relevance. Secondly, the claim of the assessee was that these loose diamonds were converted into ornaments and sold out during the relevant year itself which had become part of total turnover. To accept the claim of the assessee bonafide, the assessee has not furnished any evidence as to which loose diamonds was converted into ornaments. Onus is always on the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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