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TMI Blog2015 (11) TMI 1811X X X X Extracts X X X X X X X X Extracts X X X X ..... taining to the other entities belonging to the iron and steel industry so that honest and fair estimate of income of the assessee can be brought to tax and such data as may be produced by the assessee shall be duly considered by the CIT(A) before making honest and fair estimation of GP ratio to determine correct income of the assessee chargeable to tax - Appeal filed by the Revenue is partly allowed for statistical purpose. - I.T.A. No. 2893/Mum/2012 - - - Dated:- 30-11-2015 - Shri Amit Shukla, Judicial Member And Shri Ramit Kochar, Accountant Member Revenue by: Shri Abani Kanta Nayak DR Assessee by: None ORDER Ramit Kochar, This appeal, filed by the Revenue, being ITA No. 2893/Mum/2012, is directed against the order dated 29-02-2012 passed by the learned Commissioner of Income Tax(Appeals) - 32, Mumbai (Hereinafter called the CIT(A) ), for the assessment year 2007-08. 2. The grounds raised by the Revenue read as under:- 1. On the facts and in the circumstances of the case and in law, the Id. CIT(A) has erred in deleting the addition made of ₹ 30,09,819/- on account of difference in purchase as per P L A/e. purchase register without a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 4-112009 and in response the assessee filed only address of following seven parties: 1. Panam sales Pvt. Ltd. 2. Shreeji Enterprises 3. International steel Industries, 4. Om Shiv Agency 5. J.D. Sales Corporation 6. Harsh Enterprises 7. Precision Containers Ltd. The assessee was again asked by the AO to furnish the remaining details which was not furnished earlier including party wise details of purchase and sale recorded in Profit and Loss Account. The A.O. issued Notices u/s 133(6) of the Act to the following parties:- 1. M/s Panam Sales Pvt. Ltd. 2. M/s Precision Containers Ltd. 3. M/s International Steel Industries 4. M/s Sheerji Enterprises 5. M/s Harsh Enterprises The notice u/s 133(6) of the Act issued to M/s Panama Sales Pvt. Ltd. was returned by the postal authorities with the remarks left addressee . There were no responses from the other parties, another notice was issued to them on 10-12-2009 and 22-12-2009 which was duly served on the parties. The assessee was also asked by the AO to produce the parties along with their books of accounts with supporting documents, copies of tax returns, Balance Sheet, Profit and Loss Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted only on 24-12-2009. Since 25th to 28th of December, 2009 were public holidays, the A.O. could not verify the information from the party. Similarly, addition of ₹ 26,26,083/- was made by the AO vide assessment orders dated 29-12-2009 u/s 143(3) of Act with respect to purchases from M/s Shreeji Enterprises and M/s International Steel Industries on the ground that the assessee has not produced these parties with books of account and the AO treated the purchase from these parties as hawala purchases. 4. Aggrieved by the assessment order dated 29-12-2009 u/s 143(3) of Act passed by the AO, the assessee carried the matter in appeal before the CIT(A). 5.The CIT(A) issued several notices which were served on the assessee but the assessee did not attend the hearing most of the time while adjournments were sought many times which was granted by the CIT(A) and on one occasion on 19-03-2010, the ld. Counsel of the assessee, Mr Amit Jain,CA appeared and filed paper books and reply, as appearing in page 1-2 and 6 of the CIT(A) orders dated 29-02-2012. The CIT(A) disposed of the appeal on the basis of facts mentioned in the assessment order and other material available on recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed vide remand report that once again the assessee has made only summary statement that some of the intermediaries have cheated him by issuing bogus bills of the assessee s concern and used them as accommodation bills by other firms but no evidence or details to prove the purchases from the two parties which denied the sale to the assessee was furnished even during the remand proceedings and also books of accounts were not produced on the ground that the same has been lost . Thus, the CIT(A) held that even during the remand proceedings at the appellate stage the assessee is not able to prove the purchases of ₹ 2,51,57,526/- from M/s Precision Containers and ₹ 54,98,844/- from M/s Harsh Enterprises though it was known to the assessee that these two parties have denied to have made sales to the assessee . The CIT(A) noted that there are discrepancies in the bills submitted by the assessee for purchases made from J D Sales Corporation and Panam Sales Private Limited . The GP offered for taxation by the assessee is 0.95% and the NP offered for taxation of 0.25% of the turnover. There is no opening and closing stock despite the assessee having a turnover of ₹ 4.90 cror ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by the assessee from some of the parties has also remained un-complied with. The books of account were also not produced by the assessee before the authorities below and the assessee has also stated before the authorities below that books are lost and police complaint has been filed for loss of books of accounts. There were several other discrepancies noted in the accounts of the assessee by the authorities below which are detailed in preceding para s and are not repeated for sake of brevity. The payments are also stated to be made for purchase and sale through cheques . The authorities below have not rejected or disputed the sale of ₹ 4,90,43,129/- made by the assessee during the assessment year. The AO made additions of purchases to the tune of ₹ 3,85,91,074 /- treating the same mainly has bogus/ havala /unproved purchases for the detail reasons cited in the assessment order dated 29-12-2009 which are also produced in the preceding para s and are not repeated for sake of brevity. Thus, the AO accepted purchase of ₹ 99,83,668/- out of total purchase of ₹ 4,85,74,742/- debited in Profit and Loss Account while the entire turnover/sale of ₹ 4,90,43, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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